Page 1

Welcome to PlanetSavers University Teleclass #1 Today we will look at a “Real Deal” And analyze it thru the eyes of the CMA or Comparative Market Analysis This form should be provided to you by your Realtor. Dont leave home without it. The following slide showed up in my email. Let’s take a look. 1 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 1


Does this add value for a wholesale transaction?

2 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 2


This is the text I sent back to the Realtor. It is always the question You need to ask.

3 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 3


                                                                                                                                                                                                                                                                                                                                                                                                                                         

4 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 4


Text These are the two listings on Winery 5 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 5


6 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 6


7 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 7


8 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 8


9 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 9


10 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 10


11 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 11


12 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 12


This means you can buy a property and agree to fix it without paying before the close of escrow 13 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 13


Contractor’s Bid to get the property to Ground Zero = Ready to start Renovation

14 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 14


The Other Address on Winery from the CMA

15 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 15


Boarded Up = Nice Notice square footage. Is it the conversion? Pool - liability & money pit

16 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 16


17 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 17


18 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 18


Bad Comps Too far away and too old, 2-1, & 3-1’s aren’t comps Cyberhomes is usually better than this! 19 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 19


More Bad Free Comps Too far away

20 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 20


21 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 21


Conclusion: The Free sites sometimes Have valuable info, but not as good as a Well selected CMA from the MLS Get a good Realtor for your team Or Become One.

22 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 22


Let’s make an offer. Back to the CMA The CMA is the best single Starting Place to Start. 23 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 23


                                                                                                                                                                                                                                                                                                                                                                                                                                         

Median is skewed by the24 REO’s Use These +$10 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 24


Observations: Separate the REO’s From the “normal houses” The last two are similar Our Renovation will Make it worth $10-20K more. This will be our ARV 25 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 25


ARV = After Repaired Value This is the common term used By Investors Next we want to calculate MAO = Maximum Allowable Offer

26 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 26


Basic Formula MAO = ARV * .70 - Renovation Safer Formula MAO = ARV * .65 - Renovation These are MAXIMUMs Offer less, do the counter dance, Then negotiate again. 27 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 27


ARV = $130,000 *.70 = 91,000 Fire repair = -10,400 Renovation = - 40,000 MAO = 40,600

28 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 28


Remember Using .65 instead of .70 is a safer formula for beginners.

29 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 29


Another Method 1. Start with ARV = $130,000 2. Multiply by .85 = $110,500 (this .15 covers comm, closing & carry) 3. Subtract desired profit = $20,000 4. Subtract the repairs = $50,400 5. MAO = $40,100 Here your profit is visible and it’s all you have to make mistakes with! 30 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 30


This is “Live Ammunition� A real deal that someone could do. GEE will not be offering on this property as it is not in our target area. Let us know next week what Happens and which of these houses is a better buy. (I would offer on both) 31 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 31


Next Week Another Real Deal in the next stage: Negotiating Round 2 in the Due Diligence Stage After the first price is accepted. It will be a house that I have currently in escrow. 32 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 32


33 G r e e n E a r t h E q u i t i e s . C o m

Saving The Planet One House At A Time 33

90421 Valuation with the CMA  

Saving The Planet One House At A Time G r e e n E a r t h E q u i t i e s . C o m 1 1 Does this add value for a wholesale transaction? 2 2 S...

Read more
Read more
Similar to
Popular now
Just for you