Evaluating Discount Property

1
Evaluating Discount Property

• At the end of this session, you will be able to
• Summarize key focal points of valuing and
  analyzing discount property
• Explain how to use a CMA
• Perform a discount analysis

2
Evaluating Discount Property
7 Steps of Evaluation

• Find the Property
• Find the comps
• Estimate Repairs
• Estimate Costs
• Evaluate Exit Strategies
• Estimate Profit Potential
• Complete Acquisition Sheet

3
Evaluating Discount Property
Focal Points

• Location
• Property Condition
• Price
• Financing
• Sellers Motivation/Flexibility

4
Evaluating Discount Property
Comparables (Comps)

• Construction
• Price
• Days on Mkt
• Extras
• Distance
• Subdivision
• Appraisals

• Address
• Sq footage
• Age
• Bedrooms
• Baths
• Gar/Carport
• Lot Size

5
Evaluating Discount Property
Finding Comps

• Tax Rolls
• Web Sites
• MLS/Realtors
• Driving for Dollars
• Listing Services

6
Evaluating Discount Property
Estimating Repairs

• Initial Self Inspection
• Measuring Tape
• Ground Tester
• Marble
• Screw Driver
• Software
• Licensed Inspector

7
Evaluating Discount Property
Estimating Costs

• Buying Costs
• Holding Costs
• Closing Costs

8
Evaluating Discount Property

• What We Covered This Session
• How to recognize a motivated seller
• Summarize WHY sellers become motivated
• Three specific tactics for motivated seller
  marketing
• Explain how to target market to motivated sellers

9
Evaluating Discount Property

• Driving for Dollars

• Types of sellers
• Pros
• Cons
• Tips Considerations

10
Evaluating Discount Property

• Foreclosures

• Types of sellers
• Pros
• Cons
• Tips Considerations

11
Evaluating Discount Property

• Bird Dogs

• Types of sellers
• Pros
• Cons
• Tips Considerations

12
Evaluating Discount Property

• Courts

• Types of sellers
• Pros
• Cons
• Tips Considerations

13
Evaluating Discount Property

• Advertising

• Types of sellers
• Pros
• Cons
• Tips Considerations

14
Evaluating Discount Property

• Advertising

• Radio TV
• Website
• REIA Groups
• Expired MLS
• Yard Signs
• Direct Mail

• Flyers
• Business Cards
• Newspaper Ads
• Car Signs
• Bandit Signs
• Trade shows

15
Evaluating Discount Property

• Contacting Motivated Sellers
• Advertising
• Direct Mail
• Telemarketing
• Drive By/Door Knocking

16
Evaluating Discount Property

• What We Covered This Session
• Recognize a motivated seller
• Summarize WHY sellers become motivated
• Three specific tactics for motivated seller
  marketing
• Explain how to target market to motivated sellers

17

• Next Session
• Evaluating Discount Property