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
that you can just rip-off in duplicate using your own the local market now
what we're gonna talk about on today system Saturday is
four systems to testing a potential deal
so guys we've done the marketing and now we're looking at a deal to see if it is
really a deal so
the seller has called in without proper into MLS now we got to
stress test that if you will
to find out if it's something that we want to buy
and there's four systems that we used to do this and first system is
comparables you need to find out exactly all the other properties are
selling
around your subject property so that you can compare
your property that you're looking to buy to the other properties that are out
there that are selling so
um when you pull comparables they only
only only come from MLS guys I have said this into my face
green red yellow and everything else and people will still pull it
in Zillow in all these other places and then ask me john can I pull in these
can i pull in these. well...
well john can I pull in these. NO!!!!
you got a pull in the MLS every single time
because that is the only place where you can get accurate data
if you don't want accurate data if you want bad comps who want to get into a bad
deal
absolutely by all means go pull in somewhere else but if you want to know that you're
getting into a good solid deal
getting into the MLS is that simple to all the comps are gonna come into
the MLS that's we're gonna pull them from and you're only going to pull
comps this is huge
your only gonna pull comps one-quarter mile away
from your subject property so wherever the house you're looking to buy
you're looking for properties a quarter mile around it
that have sold okay that's what you're looking for
only a quarter mile route you gotta go out a mile or two miles are three miles
no deal so go out a quarter-mile away from your subject property
um guys never stressed to find comps
never stress to find comps they should be write in front on your face
so if you have to dig dig and dig you go to the MLS and you can't find them
and comps in all the sudden well I didn't find any comps on the MLS but
I know this is a good deal I know this is a good deal so then you end up going
over to
Zillow and now you've found it on zillow guys if you have to stress and if you
have to go
digging for the comps guys it is not a deal they should be right in front of your face
in their always
gonna be on to the MLS if it is a good solid deal
so make sure that you definitely hold tight to that you always when when
you're looking to comps guy's you
always always always you need three comps or it's no deal
okay three comps or it's no deal so all 4 those think I got 30 things to talk
about to stress tests and a deal
but when you're pulling comps you have to have all four
on those things every single time in order to know if it's a deal
or not and again the two big one actually they're all really really big
number two once you have found you deal and now you know exactly what you're
comps
are okay it's actually a quarter-mile away you know exactly what the comps are
now you gotta find out the rehab dollar does the house need any repairs how much
and repairs is actually needed on this particular deal
so what we have is we have a repair estimate worksheet
which will very very quickly allow us to
to walk through property and just estimate exactly how much
work that property needs so I highly suggest you
um you know create some type of estimate repair work sheet or something to that
extent
to work you can uh know exactly where gonna be selling this property for
ok you can walk through this property very very quickly
and find out you know what the uh actual repairs are gonna be on that
property
that's huge because you need to be very very good at coming up with repairs
and again we just have a a repair estimate working to do that what's he
got another rehab dollar
how much in construction it would need to get it
to retail value then you gotta have your resale price
okay so now you have to have your resale price so we've already talked about comps
we've already talked about you know now you got the comps now you need to see
exactly how much repairs that need
now you gotta see what you can resell it for
your resale price whenever you go to sell his property how much are you gonna
to be able to get
out from it so knowing your comp's knowing your repairs
and your exit strategy you'll know what you can get out in the hall
it's very very simply you will know exactly what you can get out
on this home whenever you go to sell this number
this resale price whenever you are selling a property guys
this is where most real estate investors go wrong is because the inflate this they
get that
resale price wrong and the inflated just to make their
deal work to be honest with you I used to do it you know the
well I'm gonna make this deal work I think I can get a hundred thousand
others guys on comps all day
are in the 89,000 or something to that effect or they inflate that
so you gotta get that right you have to get that right so we've got comps
we got to rehab dollar and then you gotta get your resale price
correctly and it's all done for the comps as well how it's done through
the fourth one is your purchase price and now you know the comps
now you know how much repair the property needs
now you know what you're gonna be reselling this property for
you gotta work it backwards now so now you just have to work a backwards and
come up with
your purchase price that's it that's how you're going to get yourself in a great
solid deals okay so what you need to do first
coming up with your purchase price is guys what sweet spot okay what sweet
spot is this home and
because that's gonna to tell you what your exit strategy is so we done pass
system Saturday I've done webinars
with everybody really explain how we go out and and find our real estate sweet spot
in the MLS which will tell you what your sweet spot should be
if you have not watch that video guy's you have to watch that video cause it is
killer
okay so when you're coming up with your purchase price
you gotta find out uh what sweet spot that property isn't
is a sweet spot where you have to wholesale property is a sweet spot
we're gonna have to prehab a property or
is a sweet spot where you're going to have to rehab this property
so what's the
extra strategy wholesale prehab or rehab
what it is okay and then you gotta know your offer
formulas on those three different extra strategy if I'm gonna wholesale this deal
what is my offer formula gonna be so if I can get a hundred thousand dollars
retail
out on this property as a wholesale do I probably want to pay around 50 percent
on that
so I wanna pay about fifty thousand dollars wholesale
okay that's what I want a wholesale for that property
Prehab, okay so you we also have offer for on prehabing and Rehabing so
gotta know these formulas
in order to to come up with your good purchase price
then what we do now we know the
the comps now we know that the repair estimate and now we know what
we're going to be buying a property for
guy's what we have a deal analyzer we have a deal analyzer
cause you already know the numbers you're already know the purchase price you're already the
repairs
if it any and you already know you're selling price you know everything
now says I didn't matter numbers it's just a matter number that at this point
you guys what I'm gonna do
for everybody that his comments below you'll see my
my ideal analyzer which will help you analyze all your deals it will show you
exactly a profit is going to be on
everything one-year deals and it will help you get into good
solid deal so go down that below now I'll see on the Next system Saturday