The Real Estate Tech Show is all about making technology work for you. And we’re talking about some epic timesavers in today’s episode. Because you shouldn’t be spending more than a couple of minutes looking at comps, not when you’re making your initial offer at least. There are apps out there that can give you access to property detail reports and sales history right on your phone or tablet.The tools that are paid tend to be the most accurate. Click To Tweet
Being able to do what you do on a mobile device is incredibly important. Anything that saves Joe time and money is automatically at the top of his favorites list, and he really loves RealQuest Express. Joe uses RealQuest to find zoning information, recorded mortgages, and old county records on his properties. It gives him everything he needs in one place, and he can easily share this information with his buyers as a PDF document.
For Cory, his ultimate comp tool is House Price Robot. Just like a hotel finder, House Price Robot collects information from all sorts of free realty sources (including Zillow and Redfin) and displays them in one place. There’s no point scouring the internet for the sales information on one property when House Price Robot can do it for you. Cory shares why the social media perks make this his favorite comp tool and how he uses it to connect with other investors on Facebook.
These are only a few of the comp tools we talk about today, and all but one of them are free. You don’t have to spend a lot of time or money on comps when you can make technology work for you. And when that tech is free, there’s no excuse for not using it! Try these out and let us know how they work for you on iTunes.Listen, bottom line, when you’re making that initial offer, you shouldn’t spend more than a couple minutes looking at comps. Click To Tweet
1:35 We officially own the domain www.realestatetechshow.com
3:04 Momentum is our favorite plug-in
4:16 It’s worth it to go platinum with RealQuest Express
8:27 Why does Joe love Redfin?
11:06 iComps offers quick, fast value
12:47 Why does Cory think the MLS is the best?
14:02 Cory walks us through using House Price Robot
20:58 How to use Rentometer with House Price Robot
22:40 Cory recommends teaming up with a real estate agent
Cory: What’s up, Joe McCall.Joe: Cory Boatright. Cory: It’s Hawaii Joe. Hawaii Joe today. Joe: Yeah, I saw this shirt in my closet and I thought I can’t pass this up, man. I haven’t worn this in a couple of years. You know what’s funny, Cory? When I first bought this shirt, I did a workshop in Hawaii.
Cory: Oh, yeah?
Joe: My daughter who was two years old, just barely over two years old, she just started talking, my wife got the shirt from Amazon, opened up the box and pulled out the shirt, my daughter said, “Ooh, is that the only color they had?” Can you believe that?
Cory: That’s pretty funny.
Joe: Now she’s six years old now but she says she wants to be a fashion girl when she grows up. I don’t get it. What’s wrong with this shirt? Nothing man. It reminds me of the nice, beautiful…
Cory: Hawaii. Hawaii is the best. I remember you were on an island with some guys, Clint, one of the sales guys.
Joe: Claude Diamond.
Cory: Claude Diamond. Yes. You did one of your masterminds. That seemed cool. Alright. We’re on episode eight today of The Real Estate Tech Show which now, we have the domain. We have the domain realestatetechshow.com.
Joe: It used to be retechshow and then our last episode, we told everybody realestatetechshow.com or something and then we’re like, “Oh, crap. We don’t have that domain.”
Cory: Yeah, we didn’t have the domain.
Joe: We called the person up who owned it and they sold it to us.
Cory: That’s how it works, man.
Joe: We got a pretty good deal on it too.
Cory: We did. Make an irresistible offer. That’s good blessing. Episode eight, we’re gonna be talking about the best tools out there for comping and they’re free tools. Actually, one of the tools is gonna be a paid tool that we talk about. I think we’re gonna talk about five of them and most of them are free. I think what we should do with this, Joe, is we’ll experiment with this to see how it works. I’m gonna go ahead and see if you can see my screen and then I’ll show the browser here on the tool. I think that will be the best way to go. You agree?
Joe: I agree. Show us your screen.
Cory: Alright, share screen here. Let me share the screen with you. Then I’m gonna go ahead and change our setting here to local so you should see my screen.
Joe: Looks good, man.
Cory: By the way, do you use this little browser plugin?
Joe: I do. It’s called momentum.
Cory: I love it. It has a little quote down here. Look at this, this one today is from Tai Lopez. That’s what we need to do. We need to figure out to get our own quotes on stuff like this.
Joe: Why does it say good morning with the view of the stars at night?
Cory: I don’t know.
Joe: My picture right now is a beautiful ice frozen lake with the sunset or sunrise because it’s morning.
Cory: I think I can change my picture. But this one’s just the normal, yeah I can go ahead…
Joe: You guys listening to this podcast, you should get this. It’s called Momentum. It’s an add-on to Chrome.
Cory: Let’s go ahead and add it in the show notes for this. That’d be good.
Joe: The show note person, whoever you are, please do that.
Cory: Yes, please do that. Please add it in. You can have some other things to hook into it for to-do things, and to-do list works with it, and there’s some other apps that you can have. But it shows the one thing. You can go in here and add the one thing today. That’s one thing that I need, it’s most important for me today, is the apartment deal that we’re looking at. It kind of keeps you on point. Let’s talk about the comp tools.
The first one is one that a lot of folks use, but this one is a paid tool. I think this one’s called Real Quest or it’s maybe Express Realquest, express.realquest.com. It’s owned by CoreLogic. What’s great about this is that you’ll see some different metrics when you go in and do your search, you’ll see a list down here on different filters that you can use. Let’s just put in an address.
Joe: You should see my screen right now.
Cory: Yup, I do see your screen.
Joe: This is Realquest Express.
Cory: It pulled up here on how to price robot now. We’ll go back to it.
Joe: But, in Realquest Express, I’m logged in and I have the platinum thing. This is kind of what you see when you’re paid. It shows you the last market sale date. Shows you who the owner is, some tax information. It’s basically pulling this from the county records.
Cory: This is the platinum that you got?
Joe: Yeah. Under location, it gives you zoning information, school district, things like that. Sales history, this is what I like. You can see the last market sale date and log times. You can see if there’s a mortgage recorded of the property. This one doesn’t show it’s mortgaged yet. Maybe they paid cash for it. I don’t know, it’s interesting.
But comps, the comps is really good here because it does a good job. If you can see in the small text here, in the bottom, it says ‘Default comp search criteria. Half mile, nine months, 15% living area difference, single family residence land use code’. It does a good job of keeping it in the close within the last nine months, within 15% of the size, and the same type of property which is pretty cool. If you look at the comps then you can see it gives you, these are sold within the last nine months with precise square footage.
Then you can check the ones off that you want, you click print report, and it gives you a comp report that looks like this. I like the median. I look at this number right here, the median value. It puts it into a map. If you’re giving this kind of a report to a prospective buyer for your property, you can just select the ones that you want them to see, then in the attached pages, it gives all the information about the subject property and about the comparable properties.
One of the thing with Realquest here that I like is if the house is actively listed on the MLS, they’ll actually give you the realtor’s contact information here on Realquest Express. They’ll give you the realtor’s phone number and the realtor’s email address. One of the things that we like to do is we like to send mail or emails to realtors of older listed properties. Sometimes you don’t have access to the MLS, it’s hard to get their contact info. You can get that from Realquest Express.
Finally, from anywhere in here, if you click on print report, it gives you a property detail report that looks like this. This is what you were talking about before. It just puts it all into a package, characteristics, location information, owner’s…
Cory: This is what the buyers really appreciate.
Joe: Yeah. This is exactly what they’re gonna see in the county records. It’s a three-page PDF. You attach it to your Podio, your CRM, whatever you’re using. It’s there. The comps, one of the things that people forget about is when you’re looking at a property and you’re looking at a comps like this, you should always put that into a PDF that you can save for future reference.
There’s been several times, Cory, when we’re in a dispute in two years or something about a particular property, when I can pull up the comps, what I was looking at when I was first looking at the property and justify the prices that we had and what not, it’s important to keep PDFs of this thing. Not like when you’re currently doing the research and not try to go backwards from two years in the future, if that makes sense.
Then real quick, I wanted to show Redfin. Redfin gives their own estimate. Sometimes they do, sometimes they don’t. But one of the things I love about Redfin is you put in a property, this is that 1456 Soaring Eagle Drive, Redfin when it’s available, 9 times out of 10, will give you sold comps.
If I go to Zillow on this property and I go to close and I’m zooming into this area where that house was, and if I go to recently solds, it will not give me the price a lot of times. Well these aren’t, no here you go, you see like this one, it just says last price sold. It doesn’t tell you the price.
Cory: It doesn’t tell you the price. Right.
Joe: For some reason, Zillow, and a lot of times it will not give you the price of the things that were sold. I think it has something to do with their access to the MLS or what not. Realtors hate Zillow. They don’t wanna give that stuff out.
But in Redfin, I have found when you go down here to click map nearby homes for sale, around that property it shows you the active comps. I’m zoomed in really high here but it shows you the active comps which I always spend just as much time studying the active comps as I do the sold comps because I wanna see what’s my competition gonna be, I’m looking at sold comps.
You can go in and do filters and say, “Alright. Only show me the four bedrooms and the homes within a certain size.” But then you can go to solds right here and it says, “Show me all the solds in the last one to three, six months, I use six months.” I’m gonna remove the for sales and I can zoom in.
Cory: Filter’s so powerful. A lot of folks don’t use filters for their convenience and they’re really, really good.
Joe: One more thing I like about this too is that you can download these comps into a spreadsheet and in this spreadsheet when it opens up here, it gives you 10 columns of data but you can sort that and get the average price per foot. It gives a nice spreadsheet of all those comps.
Cory: Actually, if you wanted to do an autosum and just get an average of those, what you can do is go up to print screen and save that as a PDF.
Joe: Yeah, save it as a PDF. Attach it to your record in Podio or whatever CRM you’re using. I use Realquest Express a lot. I use Redfin a lot. I also use iComps. Why don’t I show iComps real quick and then we’ll pop back to your screen? A mutual friend of ours, name’s John Cochran, I think he created this, right Cory?
Cory: Yes. It’s his product.
Joe: Super, super simple. You just put in the address and it gives you their estimated value. I don’t know how he calculates that. But then there’s a table below, I don’t see where the criteria is in here but all of these properties you can sort by distance. They’re within half mile. These all sold, it looks like, within the last year for the most part.
Cory: He doesn’t really have too many parameters for filtering them there.
Joe: Right. This house is 3,200 square feet. It’s giving me a 1,900 square foot comp. That’s why I like Redfin, for something free, I think Redfin is the best because you can come in here and say, “Only show me properties that are within the square footage of 1,750 to 2,250 and are three to three bedrooms.” You apply the filters and it’ll only shows you that.
If you need more comps, you just zoom out until you get more comps in the picture. Then you can export those into a report. But anyway, iComps is good for quick fast value. It gives you a good estimated value. Realquest Express gives you these two PDF reports that I like a lot. I can do it anywhere in the country. Then, I go to Redfin a lot. Of course, the MLS is also…
Cory: MLS is the best. That’s really the most accurate, the best that you can get. Do you have an agent that you can work with? I highly recommend it or if you pay, you can actually pay for a year to be a part of that agent’s assistant. You can pay a fee. They’ll actually have a fee that you have to pay the MLS, a couple hundred dollars a year, but it’s worth it.
Joe: Good. I’m back to split screen. I’m not sharing my screen anymore.
Cory: I like seeing the shirt.
Joe: Who doesn’t?
Cory: I’m gonna share my screen again with things that are available. The pricing on this tool which I do recommend. We use this tool quite a bit, Joe, before we had a real estate agent that works with us, that gives us some of the, I think, the best accurate data you can use for the MLS. But this is very, very good. I have to tell you if you are going to want to invest in a comparable tool for pricing, houses, this one is one of the better ones out there that you’ll actually get great reports for, you’ll have great pictures, it’s nationwide.
Next one I wanna talk about is our House Price Robot. This is a tool that I own. I have been developing it for several years. Really did it just to save time. What you’ll find is, this is very, very simple. We’ll just…
Joe: Yeah. You should see me dance in this shirt, man.
Cory: Oh my gosh, now I won’t be able to sleep at night.
Joe: My wife goes crazy.
Cory: Alright. House Price Robot pulled up here. What’s cool about it is you all have these different values that come in from all these free resources. Right here, realtor.com, PropertyShark, Zillow, Redfin, Homesnap, they have all these different values. If you want to uncheck it, it takes all these values it gives you an average of these values.
Let’s say at Homesnap it was $300,000 and all these other ones were around $120,000. Obviously, you wanna take that one off. But when you do, see what happens, it changes the price over here. Do you see that? It changes the price. You can check the ones that you want to use. I feel like all these are pretty much in line. This one’s a little bit lower but it’s probably good to leave that one in there to average the rest of these out. That’s a pretty accurate number for that property.
Then what you wanna do from here is you can click on this calculator called W.M.R.P Calculator. W.M.R.P stands for Worth Market Repairs and Profit. If you go up here and look at this property at $119,000 which is our House Price Robot average value. Then you look at what we call the market, the market is what’s the lending market in your area. You can do this by price, Joe, or you can do it by percentage. We usually start at 70%. That’s pretty accurate.
But if you’re over there in east coast or west coast, it tends to add another 10% to that number. It may even be 85% is what you’re looking at because the market’s hotter over there. But over here in Midwest, we’re gonna use 70%. That number is $83,809. From there, we’re using the dollar per square foot. We’re using $12.50, dollar per square foot on this property. It’s taken the dollar per square foot over here of $13.67 on this property and adding it x $12.50 and you’re coming up with $17,087 for the repairs.
If I wanna go in and change that, I can change this value right here. I can also change the number down here. I can say instead of $12.50, which usually that’s about an ugly house. We have scary house, ugly house, and pretty house. On pretty house, it might be $10 per square foot, Joe. If I put $10, look what happens, see this right here, it changes. Whatever I’m using as my number, it will change. I just need to make sure that I’m using this.
Let’s say that this one’s the scary house. Scary house might be $17.50. Let’s use scary. Now we’re at $23,922. If I hit calculate here, I’ve already calculated how much profit do I feel I wanna be able to make on this property at that 70% number which is what most investors or fix and flippers are used with their banks. They use between, like I said, 70¢ and 80¢ on the dollar because they wanna be able to have the bank give them most of the money if not all the money. This is the price that most these fix and flippers might be wanting to buy this property. Does that make sense, Joe?
Joe: Yeah, sure.
Cory: I go over here and I hit calculate, and just like that, it shows me that I need to make an offer of $49,887 on this property. I’m gonna be at 41% of our worth or after repair value. Real common, everybody calls it ARV, we just call it our worth for the W.M.R.P calculation. Let’s say I wanted to make $15,000 in profit, I would just go here, change this to $15,000, hit calculate, now I know I need to make the offer at $44,887.
Let’s say that when I come back and look at the repairs, it was a lot less than I thought. Let’s say I just wanna come in and say, “Oh I think that that thing needs $15,000 in repairs.” I hit calculate here and now I’m at $53,809. You see how easy that is, Joe?
Joe: Yeah, nice and sleek.
Cory: Really sleek. Really easy way just to get you a number on where you need to be in making that offer on your wholesale properties. You hit reset here and you can do it all over again. You just gotta hit this little section here and the calculator pops on out and you can go from there.
The next thing that you can do here is you can save your search. Once you create an account which is obviously the goal. Once you create an account so you can have your own searches, I can hit save search and now that’s gonna be saved inside my backend here under my account, under my saved searches.
If I wanna go over here and I wanna print this, I can print all of these out and it really looks really nice. If I hit print, it takes a second because it’s pulling in all these data but it will give me a pop-up here where I can print this and save. It looks really, really nice. It’s creating that PDF in the background.
If I want to share this on Facebook, maybe I have a group I created on Facebook that’s only for investors looking for great deals or whatever, I can just share this link. Right now, we have the longer link where the full search tail for the link. Right now, if I wanted to go ahead and share that, it will just go ahead and put your name and your email, and it will send it to you with that full link.
The other thing that’s interesting is over here, on nearby properties, I can click nearby properties and it’s pulling in, look at this guy on the front porch, that’s funny.
Cory: I can pull in these comps from Zillow. You just click here on the map. I can see more details of these. What’s interesting when I click it, it doesn’t take it, I open up in a new window. Now, I have my House Price Robot and I have my new window over here which makes it kind of nice too. As I go down this list, I can go over here on this list, and you’ll see that I show this as a street view right now, Joe. I can move this from my street view. This is really popular with Google. You have your street view. What I can do is I can also go over here and change it to the map. If I change this to the map and I pull this around over here, you can see I’m looking at these comps. You see that?
Cory: That’s nice too. I also wanna see what Zillow says. Even though I have my Zillow number up here, Zillow also gives me an average. They also give me a value range. They tell me about how many days on average that property might sell. A lot of good information here in one spot. That is what we have.
Also, I wanna mention that we have Rentometer. This is one of the first places that I know of that has an average for the rent. A lot of folks ask, “What is that thing gonna rent for?” We have it built-in where Rentometer will give us what their average is for that property which is another time saver for you.
Joe: That’s good. Who would not love this shirt?
Cory: I think you’re in love with the shirt too much.
Joe: I know, man. I need to come back down to earth. Listen guys, if you like this show, go to realestatetechshow.com or text the word TECH to 38470. We’ll send you a PDF report for free of our favorite tools, our top 10 favorite tools, which one of them was on what we talked about today. You’re getting a double wham. This is good stuff, comps are important.
Listen, bottom line, when you’re making that initial offer, you shouldn’t spend more than a couple minutes looking at comps. I know so many people getting started waste lots and lots of time over analyzing it. Just get used to a couple tools that give you good actives and sold comps data in your market and just focus on getting really good at that, and make the offers. Don’t over analyze it, don’t spend too much time on it. Just make the initial offer. Once the offer is accepted and you’re in your due diligence phase, your inspection period, then you can start maybe looking deeper into the comps.
Cory: Absolutely. Get an agent. Find an agent that works with investors. They will help you tremendously. The tool that we talked about today, especially with Realquest, I think that’s probably one of the more accurate that you can get because it’s a paid tool. The tools that are paid tend to be the most accurate.
But I will tell you that once we’re finished up with House Price Robot, we’re really doing our best to put more money into that on a monthly basis so we can get better values for you. A lot of good tools mentioned today. At the end of the day though, don’t let these tools, because you don’t have all the best comps. At the end of the day, you’re making offers between 40¢ and 60¢ on the dollar. That’s what it comes down to.
If you’re on the east coast or west coast, you’re gonna be higher up on the pinhole but that’s where you’re gonna be on these properties. Pretty much about 50% of the time, if you make an offer for 50¢ on the dollar on a property, you’re gonna be a pretty good shape if they accept it. If you’re checking on anything on your contract, you have things built into your contract, that will allow you to have an inspection period, that will allow you to give enough time to find somebody to buy that property at 50¢ on the dollar.
Joe: Right. You’re talking about distressed properties, properties that need work.
Cory: Distressed properties, yes.
Joe: Cool. Thanks, Cory. This has been good. I gotta jet and have lunch with my awesome wife.
Cory: There you go, man.
Joe: And then hopefully embarrass her a little bit with my shirt. We’ll see if she still wants to go out with me. She might ask me to change it.
Cory: Alright. We’ll be seeing you on the next episode.
Joe: Alright, guys. realestatetechshow.com. See yah, bye!