Blog Archives - REIkit.com

4 Types of Motivated Sellers That Real Estate Investors Need To Be Marketing to Right Now

The current state of affairs related to the Corona virus pandemic continues to affect millions of homeowners and businesses. Very few people have been left unaffected by this pandemic, with many who had plans to sell their properties from before the virus spread, but can no longer do so. While the government is helping those in need who are having trouble making their mortgage payments, and preventing foreclosures, there’s now a lot of other people who don’t need government assistance, but still need your help. They were motivated to sell their properties before the virus, and now because of it, they are more than ever looking for your help, and… Read More

How to Dominate the Most Profitable Real Estate Segment That No One is Marketing to Right Now

If it’s not obvious yet, these are undoubtedly unprecedented times that we are living in. Times that will surely make people with a bias for action a lot of money. Unfortunately, I’m seeing a lot of real estate investors sitting on the sidelines and watching Netflix, instead of taking advantage of the opportunity right in front of them. I hope that you can be one of the few who does, by Hustling From Home (TM). Now, before I continue, while I believe that it is a great time for you to take advantage of the additional motivations created by the Corona virus, I categorically do not condone or advocate using… Read More

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How to Evaluate the Best House Flipping Software

In this guide to choosing the best house flipping software, I aim to help you in your decision process by talking about the most important aspects necessary to scale your business, and then talk about the features of software that you might need in order to get there. There is actually significant overlap here between software for house flipping and real estate wholesaling, and for good reason: The hard work is on the front end, before you even offer on a property. With this guidance, I want to truly help you make an educated purchase decision in the goal of making your business successful. What is the best house… Read More

The Math Behind the Real Estate ARV Calculator Explained

The one thing that is constant is that I am consistently improving the software in response to customer feedback, as well as a result of my own daily use of the tools. As a result of feedback from one of customers who is a HomeVestors franchisee and performs a high volume of ARV assessments, there are several new calculations that have been added to the ARV calculator. These calculations should help you reason much more effectively about the potential value of your real estate even more in line with appraisal best practices, especially when performing a sales comparison analysis and adjusting your comps in the tool. There are now 4… Read More

18 Essential Metrics to a Complete Real Estate Investment Analysis

When it comes to analyzing the potential of an income producing property, most people focus on Cash on Cash return as the only measure of their real estate return on investment. However, to get a complete picture of the return of your real estate investments, there is an array of metrics that you should include as part of your rental property analysis. While initially overwhelming, in this post I’ll break down each metric, provide the formula to calculate it, and show you examples, using a real-life advertised deal. In addition, I’ll also go into how these figures and ratios relate to each other. The total picture you get from preparing… Read More

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7 House Flipping Mistakes To Avoid When First Starting Out

There are several mistakes that I consistently see new (and even experienced) real estate investors make when first venturing into house flipping. These mistakes are understandable when the excitement to get started conflicts with the knowledge required to execute a house flipping project quickly, cheaply, and profitably. In this article I list the seven major house flipping mistakes that new real estate investors are likely to make when first starting, and how to avoid them in the first place. Mistake #1: Buying Too High When a new investor wants to start flipping, they turn to the first place they know to find properties: the market. These are properties listed… Read More

How to Import MLS Comps from Redfin into REIkit.com Real Estate Investment Software

REIkit.com real estate investment software has powerful tools built in for performing thorough due diligence on real estate investment properties. This due diligence normally starts with the process of calculating after repair value (ARV) by first selecting appropriate comps, and then using the method that most appraisers use to value property: that of a sales comparison analysis. This post is only about the first part of the equation, and specifically on selecting the sources comps. Whereas the free version of the after repair value calculator suggests 5 comps from Zillow, and allows you to add additional properties to the analysis one by one, the premium version of the software, not… Read More

Why Are Your Real Estate Investment Offers Always Getting Rejected?

Despite carefully following the most commonly used rules of thumb in real estate investment, new investors eager to get their first deal under contract, nearly always find their offers immediately rejected. They frequently experience the following scenario play out: I follow all of the rules of thumb, make sure I’m conservative with my numbers, and end up with an offer that’s way below listing price….and this is the 10th one that has been rejected. or My MAO says that using the 70% rule, I should offer X which is less than half the listing price, and my realtor won’t even submit the offer. So what do these frustrated investors end… Read More

Real Estate Investment Strategies: Example BRRRR Analysis

In this video and post we are going to analyze a property that was recently advertised on BiggerPockets as a potential BRRRR real estate investment strategy candidate. In order to perform the analysis, we will be going over: An Overview: What is BRRRR? The Potential Deal What is the 2% Rule? Gathering the Due Diligence Data Verify the After Repair Value (ARV) Identify the Rehab Costs Enter the Purchase, Sale, and Holding Costs Purchase Costs Sale Costs Operational Expenses (OpEx) Modeling BRRRR Financing: Buy, Rehab, Refinance Hard Money Purchase Loan for Purchase & Rehab FHA Conventional Refinance Rental Property Income Capital Expenditures (Reserves) Itemizing CapEx How Does CapEx Affect… Read More

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Why Should Cash-on-Cash Analysis Only Be Used For the First Year of Rental Cash Flows?

The other day I was thinking about how we use Cash on Cash Return (CCR) to filter and compare potential rental property investments, and how that metric is only useful to understand the first year performance of a potential long-term buy-and-hold deal. This post explains the limitation of Cash on Cash Return (CCR) beyond the first year, and why you should use Internal Rate of Return (IRR) to analyze the long-term potential of your rental property investments instead. Starting at the Beginning: What is ROI? ROI is the rate of return of your total investment. Generally, ROI is used for short-term investments such as flips where you… Read More