Home Evaluations and Deal Analysis: How to Run Comps and Calculate ARV | Topic Thursday 29

Investment System Overview

00:00 Understanding the Four Investment Processes
02:23 Buyer’s Premium and Investor Profit Margins
03:47 Novation vs Fix and Flip: Property Occupancy

Robert explained how every investment deal fits into one of four processes: cash offers, novations, 10% buyer premium listings, or fix-and-flip opportunities. The EZ system helps agents identify which strategy makes sense for each property.

The group also discussed how occupancy can determine whether to pursue a novation or traditional flip — a key detail that shapes how you approach both the seller and your investor partner.

Seller Lead Qualification & Data Verification

04:30 Seller Lead Qualification: Questions to Ask
06:33 Verifying Property Ownership and Tax Records

Before running comps, confirm your data. Robert showed how to verify tax records, ownership, and previous sales history to ensure accuracy. He also shared qualifying questions that help you identify motivation, timeline, and repair expectations early.

Running Comps & Property Analysis

07:27 Running Comps in the MLS
08:56 Analyzing First Comparable Property
09:59 Comparing Kitchen and Interior Features
11:25 Subject Property’s Superior Upgrades
12:42 Evaluating Dated Properties That Sold High
14:04 Reviewing Subject Property Photos
14:41 Determining Property Value After Repairs
16:04 $250K in Recent Renovations Explained

Robert compared active, pending, and sold listings to determine true market value. The subject property — renovated with $250K in updates — outperformed nearby sales, supporting a projected ARV of $1.35M.

Agents learned how to quickly spot upgrades that matter most in valuation: kitchens, flooring, and presentation.

Offer Strategy & Deal Details

16:43 Team Estimates: What Should We Offer?
16:59 Purchase Price Revealed: $850K
17:18 Excise Tax in the Deal
17:53 Reviewing the Purchase Sale Agreement

Agents walked through offer pricing, factoring in excise taxes, fees, and profit spread. The final offer came in at $850K — right in line with the 70% minus repair cost formula used by professional investors.

Financing, Costs & Profit

18:59 Comparing Three Hard Money Lenders
19:33 Best Loan Terms: 9% Interest, 1.25 Points
20:22 Breaking Down the Costs & Cash Required
21:12 How Contractor Relationships Work
22:08 Projected Net Profit: $211K Minimum

Robert broke down real loan terms and fees from three lenders. The chosen loan carried 9% interest and 1.25 points, producing a minimum $211K profit after expenses.
He also discussed how reliable contractor relationships protect both investor margins and agent credibility.

Financing Options & Strategy

23:01 Financing Options for Investors with No Money Down
24:30 Why the Seller Rejected the Novation Offer
25:04 The 70% Minus Repair Cost Formula
26:03 Total Profit Including Commission Breakdown
26:56 Can You Refinance Existing Hard Money Loans?

The team reviewed the “no money down” options available to investors and why understanding cost breakdowns builds trust. Robert shared how commissions fit into total profit and how agents can keep deals fair and transparent.

Agent Advantage & Market Shift

29:41 How These Programs Increase Your Value to Investors
30:57 Preparing for the Shift to Seller’s Market

Understanding ARV, repair costs, and profit structures positions agents as true advisors — not just listing reps.
Robert closed this section with reminders that a seller’s market is coming, and agents who master these calculations will stand out to both homeowners and investors.

Tools, Forms & Homework

31:47 Accessing the Document Library and Forms
32:20 Schedule Updates and Homework Reminder

Agents received homework: practice running comps, evaluate a property using the 70% rule, and prepare to discuss investor outreach.
Robert also shared where to find templates, purchase-sale forms, and investor documents inside the EZ Agent Hub.