Smart and Fast equals Success
Every deal is about knowing the numbers! And it’s been said that the most important number is the After-Repair-Value (ARV). Knowing this number before you acquire a property can be the difference between making a great deal versus making a deal you wish you could forget.
The majority of discounted properties are usually junk properties, vacant properties and/or fixer-uppers. They’re often in need of many repairs to be optimized to their fullest profitable use. As a result, investors must know the difference between the “as-is” value of a property and the ARV.
In some rare instances, the AVR becomes less important than the “as-is” value!
For example, Veristone’s Travis Wandell recently worked with a client in Vancouver WA, who sourced a property through My Realty Hub. In this case the client was a broker with good insight into what the “as is” and AVR values were of a target property.
Working with Veristone, the broker was able to quickly get an auction loan from Veristone for $345,184 and drive to the Thurston County auction with checks in hand, where they landed their target property for the “right” price. In fact, the “as is” value of the property afforded them significant margin based on what they were able pay at auction. The purchase price for this lovely single family residence on the Golf Club at Hawks Prairie, was $420,000.
The condition called for minimal fix-up – under $1,000. Knowing the market and the “as is” value, allowed the client to buy, quickly repair and list right away for $529,900. They had a pending sales agreement in place within 6 days for $495,000. The $75,000 gross profit was an amazing amount for such a fast turn-around.
The art of this deal really shows the importance of knowing the numbers and having a partner who can get you financing in a blazing hurry. Another successful flip thanks to being smart and fast.
Interested in buying at the auction? Ask us how Veristone can educate and empower you to be a successful auction buyer.