Welcome… today we’re going to talk about finding comps.
One of my coaching clients asked me about this, so I wanted to address it with all of you. I have a YouTube video up on the same subject.
I generally get 5 or 6 comps from different sources, then do an average AND a median.
If I’m making a cash offer, it’s going to be low. It’s supposed to be. If you don’t have a knot in your stomach because you think you offer will be laughed at, you’re offering too much.
Teach your virtual assistant to get comps for you. Remember to add in money for repairs. I use a per square foot calculation.
When doing a sandwich lease option, I multiply the comp average by 85%. Then I multiply the rent the house can get by 75, and that’s my offer to the seller.
Watch my YouTube video and you’ll be able to see these calculations. It’s so much better to see it than to try to carry the numbers in your head.
Listen and learn:
- For a cash offer, average the 3 lowest comps and offer 80% of that.
- Compare your offer to active listings before presenting it.
- Learn how to calculate the Maximum Allowable Offer (MAO).
- Always be thinking about how you can make the deal attractive to your end buyer.
Mentioned in this episode:
- Joe’s podcasts on iTunes: Real Estate Investing Mastery Podcast
- Joe’s free book: WLO Book
- Joe on Facebook: Joe McCall-Wholesaling Lease Options
- Joe talks about comps: YouTube
- PropStream: Propstreamjoe.com
- RealQuest Express
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