A large part of buying an investment property is knowing what your after repaired value will be for the property, so you are aware how much profit you can make. Finding this value requires finding comparable sales, and part of finding the most accurate comparable sales is being aware of the location of the comps to your subject property! This week, Justin explains why the location of the comparable sales you use is such an important factor in finding the correct and most accurate value for your next investment property. He discusses what you may want to be looking at with location, and gives a great example of how the location of comps can change a value drastically.
Part of our lending process at Pine Financial Group, is making sure both ourselves and our borrowers understand the numbers on a deal. These numbers consists of purchase price, repairs, closing costs, and after repaired value. The after repaired value is a number that we look at thoroughly, whether it be through an appraisal or comps, to ensure that our borrowers will be making a solid profit on their next deal, rather than losing money on it.
If you have any questions with how to find your after repaired value, or would like a second opinion on your value, please feel free to reach out to us! Check us out at http://www.pinefinancialgroup.com, through our Facebook page at http://www.facebook.com/pinefinancial or give us a call today at 303-835-4445.