278: Rookie Reply: Finding Comps, Estimating Rehab Costs, and Filling Vacancies

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 15 April 2023

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

A FSBO (For Sale By Owner) seller wants to move forward with your offer—that’s great news! But first, they have asked you to pull comps (comparable sales). Believe it or not, this is something you can use to your advantage. Of course, you’ll need to know where to find comps and how to estimate rehab costs so that you can defend your offer. Thankfully, Ashley and Tony are back with some of their best tips yet. Welcome back to another Rookie Reply! Negotiating a FSBO sale can be a little intimidating, but our hosts are here to help you navigate the entire process. In this episode, we also discuss and compare real estate financing options, from conventional mortgages to portfolio loans. We even weigh the pros and cons of personal debt versus commercial debt. Struggling to find a tenant for your rental? You’ll want to hear what we have to say about lowering rent prices, as well as other steps you can take to fill your vacancy and improve your cash flow immediately! If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover What you need to get approved for a commercial real estate loan How to structure your first real estate investing partnership The pros and cons of taking on personal mortgage debt instead of commercial debt The best ways to estimate rehab costs When you should consider lowering rent prices to fill a vacancy How to find sales comps for a FSBO property (or any property!) you’re buying And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Real Estate Rookie Facebook Group Join BiggerPockets for FREE A Step-by-Step Guide to Estimating Rehab Costs w/ Master Flipper & Investor James Dainard (Part 1) Finding Contractors, Renovation Red Flags, and Estimating Rehab Costs (Part 2) w/ James Dainard Propstream Zillow BiggerPockets Bookstore MLS Realtor.com Real Estate Rookie Youtube Channel Book Mentioned in This Episode: The Book on Estimating Rehab Costs by J Scott Connect with Ashley and Tony: Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-278 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real State Rookie episode 278.
0:04.4	You should also look at the numbers and use that to help you kind of make a determination
0:09.6	because like say that we look over the next year, over the next 12 months,
0:14.0	and say that you're trying to get a thousand bucks for your place right now,
0:17.1	but because you try to get a thousand dollars, your place sits vacant for the next two months,
0:22.1	right? Over the course of that year, you have two months that are empty,
0:26.5	so you're going to make $1,000 over 10 months, which is $10,000.
0:30.9	Say that you drop the price from $1,000 to $9.50, and you rent it out this month.
0:35.6	Now you have a full 12 months. You're actually going to make more.
0:38.9	You'll make $11,400 at $9.50 if it's rented out for the entire year.
0:43.5	My name is Ashley Care, and I'm here with my co-host, Tony Robinson.
0:47.2	And welcome to the Real State Rookie podcast, where every week,
0:50.0	twice a week, we're bringing you the inspiration, motivation, and stories you need to hear
0:53.6	to kickstart your investing journey. And I want to start today's episode by shouting out
0:57.5	someone by the username of RSGreen2. They love to say, five stars of UN Apple podcast that says,
1:02.8	I tell everyone and anyone I can to listen to this podcast,
1:07.3	especially when people ask me about where they can start.
1:10.4	Tony and Ashley have great energy, and they keep things very tangible for listeners.
1:14.7	Keep up the great work, Ashley, and keep laughing to let anyone tell you different life is too short.
1:20.0	And so RSGreen3 appreciates you, and Ash, I got to say, I love your lap as well.
1:25.5	Don't listen to the haters. Keep doing your thing. Keep living your life.
1:28.8	Well, thank you so much, because it is physically impossible to talk about being yourself.
	...

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