house is really honestly gonna be worth number two
redo
I did everything myself and here that is not how'd he do
the business and that right there is a house that I have already flipped
as well. And I already know that I can flip this house to a buyer on my buyers list
cause I got strong buyers list in this area
Hey what's up guys, John Cochran here and today is system Saturday the day that I
bring you a system that I use my business you can rip off
duplicate using your own local market now on today system Saturday what
we're gonna talk about is 4 system that we use every single time
now we're testing a potential deal so guys were into the market right now at
work
you gotta go out and got a find this sellers so whenever you find these motivated sellers
we need seller contacting you to buy their property
you gotta stress as your deal you gotta know that that thing as a deal going
into it before you actually write the contract and today I'm gonna show you
what we do
to know if it is a deal or done number one you gotta check
it's comparable properties so I'm gonna refer these as comps
so comparable so whenever you're you get here you
always always always and only used to comparable from the MLS
okay so you only use comparable from your MLS so what you gonna
do
is you're gonna go out and search for property you got your subject for everything gonna
buy
now you need know what's going on in that area around that subject property to see
how yours is going to be valued so you always use the MLS you do not use zillow
you do not use anything other than the MLS I could say these blown a
face
and people will still use other different Avenues
to copy not properly you've got to use that MLS or
a surface that is using MLS for their copy
you also want to search whenever you're searching the MLS you want to search for
property they were active you wanna know properties that are pending you wanna know
properties that are sold
a quarter-mile away from the subject property and if you have to dig guys
it's not a deal so here's what all this means is that what you gonna do you
gonna have your subject property that you are interested in buying
so what your gonna do it search the MLS what you gonna to is search a quarter mile
away
from your subject property and your gonna look for active
pending and sold property a quarter-mile because that's gonna give you a great
idea of what's going on a quarter mile around your particular property
from the past six months so that's another
thing six-month past so this will give a great idea to wear you know
what your house is really honestly gonna be work and the last thing you have
to do, you have
guy's you have to have at least two to three sold comps yes we're looking at the
active
yes we're looking at the pending but what we really care about is a sold in you
have to have at least whenever you're doing a search 2 to 3
sold comps or it's no deal guys guy's and again it you have to dig for
of comp if you have a dig it is not deal you're trying to make a deal
something that is not a deal and that is a big big no no
number 2 your rehab dollars and now you've you got this property now you
know everything that is going around
going on around that property you know what price you gonna be able to get out
you know we should be buying for
but now you need to know what the rehab dollar how much money you're gonna have
to put in
to this property so whenever you know your numbers are you going to prehab or
you gonna rehab the deal
that's the first question that you need to answer up you gonna prehab it or rehab
it
or you gonna wholesale so depending on what where it is
is gonna tell you what your your extra strategy is your property
is this property in your Prehab or Rehab sweet spot that's another huge
one
that how much in rehab does your home need so what we do
is will go to over comps and then what we'll do is we'll walk through the property so
walk through the property will have a sheet
like this we call these properly repair estimate form
which is gonna tell us exactly what we are going to be putting into that
property weather's going to be a Prehab
or whether it's going to be a rehab it is very very helpful
whenever you're buying property you have a form like that number three
your purchase price so now you know that you got a property now you know all
the comps quarter mile around the active pending and sold
now you know how much repair it needs if it's in your Prehab or your Rehab
sweet spot
now what the hell are you buying for
property for four so here it is so number one you got established
the retail price for the house the property that you're looking to buy
whenever you put a comps step on number one so
your pull the comps steps that number one and yes you're getting over
you what you can get our property but what you're doing is you're going to
establish the retail price
of that property because the retail price
of what you can do whatever you sell that property is what the formula that we're
going to use it to come up with your
purchase price so here's the formula if it is your wholesale sweet spot
you're gonna wholesale these property of your gonna just send it to another
investor, you're gonna wholesale these property of
here's a the here's the formula you're going to take retail price times
.5 which is 50 percent minus five thousand dollars and that's gonna be
the purchase price that you gonna be offer them motivated seller now
you might just be saying John why why why is that your
your your your price so here's the deal so guy's what we we always gonna take
retail price: so let's just give a great example on a wholesale deal
a property is retail for one hundred thousand dollars
so obviously we can't pay a hundred thousand for so retail
if we did everything to these property we can get 100,000
of all out of it so we take 50 percent in that .5
that leaves at with selling these property that leaves us with fifty thousand dollars so
now what we're gonna do is were gonna subtract five thousand dollars for a profit
which means that our purchase price on the house it's gonna be forty five thousand
dollars on a property
that would be the AR really after repair value:
would be I 100,000 of now
if it's in your pre have now missing your brain have sweet but if your gonna
pre have a proper you're going to
you know just knew I'm not repaired hip to get up to where lamb or somebody else
to buy this property
here's the formula you gonna take your retail price: but you establish time to
5.9
ninety percent minus the repairs that we didn't that number two
-15 thousand-dollar and that's uniquely your purchase price
to begin a rehab it urging at a pre-event
here's a map again on that one hundred thousand or property
100,000
time to buy point nine you've got ninety thousand to tractor repair
from that know maybe it's ten thousand dollars in repair
that 80,000 contract by 15,000 which is gonna be your profit
and then whatever that figure is is gonna be the purchase price we're going
to be able to pay
that property if you gonna rehab the property between your reaction on your
gonna pick something up to the not
gonna you gonna come up with upper right by taking the retail price
subtract the repair that you get in step number two
subtract thirty thousand dollars for your profit and that's going to be your
part
price back that up our best power so
number one is you gotta you gotta go after you know you're a
gotta find the comp number two you gotta know how much in repairs going to beat
number three is you gotta know what the perfect formula
gonna be number four your resale price so whenever you buy this property
you have to know what you're going to resell this property for sale you can
end up making a profit so
this is the price the resale price is the price that you're gonna still
prepping for
depending on your extract because different on
when you gonna hold till preempt or whether you're going to rehab now if
you're gonna hold
sell the property of when you fell so you've already bought it i'd give you
the formula whenever you buy a property
now if you're gonna sell it here before we leave it for you wholesale is
probably going to take the retail price you missed that one time by .5
which is gonna be your sales price same exact thing that we didn't last that the
only difference is the 1i
tracking our prop of it
that wholesale Preet retail price: that use that was kinda by .9
that it to your sales price your asking price
and then if you're going to rehab this property you gonna take a retail price
and that is your actual sale price
got this is a big difference at Acadian giving you a lot I'm not a lot of porn
living here you can use right in your own business that is going to help you
buy properties right
and sell properties not give them away and still sell them
very very quickly the guys who drive your YouTube channel like us on Facebook
and I'll see you on the Nexus
czar
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