Hey what’s up everybody we’re gonna be going over the question that everybody’s been asking what is comp in real estate wholesaling? Stay tuned
Welcome back everybody if you’ve been scratching your head at the term comp and not sure what it means in wholesaling, you found the right place I’m going to explain to you what comping is what the word comp is, and also how to comp properties.
Today, we’re going to be clarifying what the word comp means. And better yet, I’m going to be showing you a live breakdown of me copying a property with one of my students so you can see a live action comping session, so it doesn’t you don’t have to guess how to do it. By the end of this video, you’re going to know exactly what comp means and when wholesaling real estate understand its importance in your deals that you’re doing and see a live example of how to accurately determine comps.
First, let’s dive into what comp means what the word comp means is just short for comparable sales. And what that does is a tool used to understand the after repair value of a property. So when you’re selling a house you know exactly what it’s worth before I get into the next two tips if you’re liking what you’re seeing already please subscribe to this channel as it helps me grow and get this in front of more people so we can help do more wholesale deals. Next yr comps crucial and real estate wholesaling.
Simply put, they help you price properties accurately so you come off credible to the sellers and the buyers you work with as a wholesaler. Now before we dive into the live comping session that I have that I did with a student, let’s determine how you can find these comps. There’s a lot of different ways where you can find comps the MLS is honestly the best place you can go because you know it has the most accurate data. If you go to Redfin, Zillow realtor.com, there’s a lot of different ways that you can comp properties for free.
And you also have different services like batch leads and privvy that I use to count my properties when I don’t have MLS access. Why is it so important to have accurate data, you want to know exactly if you’re comping and pricing these properties with the right info, or you could be shooting too high on a property or shooting too low and missing out on deals. But you really need accurate data. And I’m actually going to show you how I’m using privy right now to complex deal that I have with one of my students, let’s dive right into this live video.
So you can see how I did it and how you can do it too. So usually, when you’re able to usually I’m saying usually usually when you’re able to get a deal on a property, it’s there’s some kind of value add. Like it’s, it’s either been on the market for a while. So there’s something going on, or there’s value add this one looks like obviously, it’s not like a brand new flip, but it looks fine to me. And if we go down here, and we can see some comps, so it’s listed for 365, you can see that, you know, a couple of these other homes have sold in the area for around 340. Let’s see, it’s saying that this is a potential comp that sold for 500,000.
So this is it saying that this might be a comp, now you can’t always go live and die by what it tells you. Because you never know. But I’m looking at this house. And this one’s sold for 500,000. But the difference in the houses, let’s see what the difference in the houses are three, two, you know, the square footage, similar lot size 55,000. So let’s go back and see if ours is kind of similar. So immediately, why did it sell for much more? David? I can see that. Yeah, it’s a seven.
Yeah, the the lot, the lot size is what got it and this thing. So for me, it would I would say it’s not really a comp. And this is what it’s it’s basically, you know, saying, Hey, this is this is an investor that flipped his house. Let’s go over here. So we’re seeing some 460 fives in here that are saying that they’re decent comparables.
I think my partner’s coming in.
So let’s see for for the two. So I’m looking at this property and I think because of the other comp that’s at 500,000 this thing, you know, kind of distorted this. I wouldn’t say that this is something that I’m interested in. Does that make sense? Okay, so let’s go this one. So two bedrooms, two baths, we’re gonna look at this. Okay, is there a value add here? It looks nice. And then you go to the comps, if you’re looking for truly turnkey home, so there’s someone as a turnkey.
Now, we could always call on these and be like, pitch terms, like especially if it’s been on the market for a while and be like, hey, you know, I can, I can put a little bit down pay your commission, blah, blah, blah. But it does look like the it’s sold for 2623. And someone went in here, David and just cleaned it up and is trying to relist it for 289. So someone already tried to do you know, a little baby bitty flip in it. Does that make sense? Sure. Definitely. So for 26 and then bam, right there. Okay, so let’s go this one.
Okay, this see there’s there could be some value out here, you know, I’m saying crappy. Yes. Yes, sir. So now you look at this, and you’d be like, okay, he’s saying that if it’s in the 150 range, right. And it can sell for around the 300. He’s probably interested. Is that what he was saying? Right. Yeah, yeah.
o this One actually probably will sell if you’re looking at this comp, Irene loop. It’s pretty similar but the guy did like, as you can see, like a pretty nice flip on it. And it’s, it’s sold for 270 So let’s just say that this 150 We have is can sell for 270 Okay, let’s take let’s I like to put in my calculator. So we got 270 This one is listed at 150 and you guys 14 Sorry, hard money 1% The loan payment Nolan points, five months 3% He’s probably an agent so we’re good closing costs, if if the rehab is let’s just say medium rehab. I’m actually gonna put the actual numbers in here.
Let’s say it’s a 40k rehab, and you want to make 15k on IT Pro versus the deal right here according to the numbers, you could make 15k wholesale Tim 165 and he could flip it I wonder why this thing’s a light rehab.
He usually is around 30k and then a full rehab is close to seven.
Okay, so this is a light I would say this is not such a light rehab. Yeah, it’s not this is more of a I would say like medium so I think 40 is probably spot on. So this thing is active bro. It’s been listed for three days. I don’t know why no one’s why it’s still on the MLS. According to these numbers let’s freakin call. I hope that was enlightening. For all you guys if you found value in this video, please hit the like button, drop a comment in there. I do look at my comments and I’d love to chat with you see how you’re doing. We’ll see what you think about these videos maybe even what I should do next. But hey, I’d love to see on the next video. Catch us on the next one. See ya
