99: How to Comp a House (EVEN During a Housing Correction)

On The Market

BiggerPockets

Business, News, Education, Investing

4.8 • 859 Ratings

🗓️ 28 April 2023

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

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Summary

Don’t know how to run comps on a house? This single skill could be costing you, or making you, hundreds of thousands on every deal you do. No matter what level of real estate investor you are—rookie, intermediate, veteran—the ability to comp correctly will put you above the rest as you walk away from deals far richer than other investors. And during a housing market correction like we’re in today, this skill isn’t just something that’ll make you more money—it’s what will stop you from going broke. Comping, formally known as pulling comparables, is putting a potential property up against other properties in the area, finding a comparable price, and seeing how much can be made on a deal. Most real estate investors have pulled comps a few dozen times, but investors like James Dainard and Jamil Damji calculate THOUSANDS of comps monthly. They’re looking for the profitable property needle in the housing market haystack, and as two self-made multimillionaires, their experience shows that they know what they’re talking about. In this episode, James and Jamil will show you EXACTLY how expert investors comp properties, what you need to look out for when calculating your own, and the “appraisal rules” that were taken DIRECTLY from the source on valuing properties. The tips in this episode could make you six figures more on your next deal. DON’T miss this. In This Episode We Cover How to determine the value of ANY property in ANY location Comping explained and why you MUST have this skill to invest in real estate successfully The “appraisal rules” Jamil uses to get perfect comps on any deal he does Cities vs. suburbs and the BIG mistake investors can make when comping these two areas Where to find property information and the ONE source you should always start with Comping during a housing market corrections and what to do when prices start to slide The ONE tweak James made that helped his recent house flip make $100K+ more And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave’s BiggerPockets Profile Dave’s Instagram James' BiggerPockets Profile James's Instagram Jamil's BiggerPockets Profile Jamil's Instagram Grab Jamil’s Appraisal Rules How to Determine a Property’s Value Using Real Estate Comps What is a “Comp?” Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-99 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest
0:07.2	rates are hurting the real estate market right now. Demand is dropping and prices in a lot of
0:12.2	markets are falling, even for many of the best assets. So it's no wonder the Fundrise
0:17.3	Flagship Fund plans to go on a buying spree expanding its billion dollar real estate
0:22.7	portfolio over the next few months you can add the fundrise flagship fund to your portfolio in
0:28.9	just minutes and with as little as $10 by visiting fundrise.com slash pockets fundrise.com
0:35.7	slash pockets carefully consider the investment objectives,
0:39.5	risks, charges, and expenses of the Fundrise Flagship Fund before investing. This and other
0:44.9	information can be found in the fund's prospectus at fundrise.com slash flagship. This is a paid
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1:23.5	at biggerpockets.com slash bam. That's biggerpockets.com slash BAM.
1:31.0	How high is the interest rate for the new Laurel Road high yield savings account?
1:37.0	This high. The air is really, really thin up here. The Laurel Road vary. High-ield savings account.
1:47.9	Variable annual percentage yield.
1:49.7	APY is subject to change at any time.
1:51.9	No minimum balance required.
	...

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