STAGE 1 GATHERING PROPERTY INFORMATION o Research the Seller o Fill out the "Seller Lead Sheet" o Research the Agent o Pull up or Printout the MLS Property Listing Sheet o Fill out the "Agent Lead Sheet" o Review Zillow "Zestimate" Value o View the Property & Neighborhood Using Google Maps o Create a Property Record in Realeflow o Create a Seller Contact Record in Realeflow Most of the time you will not have time to research the seller if they call you directly. However, sometimes you get a web lead, a voicemail you have to return or your making an outbound FSBO call. If this is the case 1) Look up the seller on Facebook/Google to see if there is anything you have in common that will help you build trust and rapport before you call. 2) Look up the property to see if it is currently listed on the MLS before you call if you have the opportunity. This is not essential because you can find out when you call the seller back, but it does give you more insight before reaching out. If you are speaking to either the seller, a representative of the seller, or a wholesaler then make sure you utilize the "Seller Lead Sheet" to gather all the important information about the property and the seller's situation so you have the details you need to start analyzing the property. The "Seller Lead Sheet" is a document you can download on the Mastery website. Before you call a specific agent who has a MLS listing you are interested in you should quickly research the following. 1. See if you have a contact record for them already set up in Realeflow or your database to refresh your memory if and when you spoke to them in the past. 2. If your MLS has the ability to search agents by first and last name you can get an idea of how many listings they have currently and historically to see how experienced they are. 3. Look them up on Facebook/Google for anything you can utilize to build trust and rapport before you call. If the property is listed on the MLS make sure you pull up the listing on your computer or printout the MLS property- listing sheet so you can quickly review it before you call the agent. Make sure to click through the pictures as well to refresh your memory about the current condition of the property. If you are speaking to a real estate agent or broker then make sure you utilize the "Agent Lead Sheet" to gather all the important information about the property and the seller's situation so you have the details you need to start analyzing the property. The "Agent Lead Sheet" is a document you can download on the Mastery website. Either before, during, or after the call with the agent or seller, enter the property address into www.zillow.com to see what the Zestimate is. This number will not be highly accurate, but it will give you a ballpark valuation for the property. This will help guide the conversation and help you determine how much time you should spend gathering information about the property. Plug the address into Google Maps and click on the street view to get an idea of what the property and neighborhood look like. Create a new "Property Record" in your Realeflow account so you can track the property you are analyzing. Just enter basic information about the property to start because you can add more details later. Create a new "Seller Contact Record" in your Realeflow account so you can track the sellers contact information and so you can keep track of all notes about your future conversations. Make sure the Seller Contact Record is linked to the Property Record as the owner of the property. Just enter basic contact information to start and you can add more details later.
o Create an Other Contact Record in Realeflow for the Agent o Scan and Save the Seller or Agent Lead Sheet to Realeflow or Dropbox o Save the MLS Property Listing Sheet to Realeflow or Dropbox o Research the Seller o Fill out the "Seller Lead Sheet" o Research the Agent Create a new "Other" contact record in your Realeflow account so you keep track of the listing agents contact information. When you click the "Type of Other" contact you can select "Realtor" so all your agent contacts are grouped appropriately. Make sure the "Realtor" contact record is linked to the Property Record as the Realtor for the property. Just enter basic contact information to start and you can add more details later. Once you have filled out either the "Seller Lead Sheet" or "Agent Lead Sheet" then you should scan and save the document to the documents section inside Realeflow so you can review it anytime you are looking at the property record. Some people will save all paperwork related to a property on "Dropbox" in addition or instead of using the folders in Realeflow. Save a PDF version of the MLS Property Listing Sheet to Realeflow or Dropbox to the documents section within Realeflow if the property is listed. Most of the time you will not have time to research the seller if they call you directly. However, sometimes you get a web lead, a voicemail you have to return or your making an outbound FSBO call. If this is the case 1) Look up the seller on Facebook/Google to see if there is anything you have in common that will help you build trust and rapport before you call. 2) Look up the property to see if it is currently listed on the MLS before you call if you have the opportunity. This is not essential because you can find out when you call the seller back, but it does give you more insight before reaching out. If you are speaking to either the seller, a representative of the seller, or a wholesaler then make sure you utilize the "Seller Lead Sheet" to gather all the important information about the property and the seller's situation so you have the details you need to start analyzing the property. The "Seller Lead Sheet" is a document you can download on the Mastery website. Before you call a specific agent who has a MLS listing you are interested in you should quickly research the following. 1. See if you have a contact record for them already set up in Realeflow or your database to refresh your memory if and when you spoke to them in the past. 2. If your MLS has the ability to search agents by first and last name you can get an idea of how many listings they have currently and historically to see how experienced they are. 3. Look them up on Facebook/Google for anything you can utilize to build trust and rapport before you call.
STAGE 2 DESKTOP APPRAISAL o Print Tax Assessor Property Card or Assessors Field Card o Save Tax Assessor Property Card to Realeflow o Verify Information from "Seller Lead Sheet" o Verify Information from "Agent Lead Sheet" o Verify Information from MLS Comparable Property Listing Sheet o Pull Comparable Sales from The MLS o Select The Best After Repair Value Comparables o See if the Subject Property Was Listed Recently o Determine the Quality of the Deal o Map the Comparable Properties within the MLS Most Multiple Listing Service databases have tax assessor data built into the database where you can pull up online assessor property cards / field cards. You use this information to verify what the seller or agent told you about the property over the phone. If you don't have access to the MLS in your area you can call the tax assessors office and ask them if they have an online website where you can access property information about properties in the area. We use this information to pull our comparable sales in this stage. On the property card you will usually find information like owner info, tax assessment info, property characteristics, sales history, mortgage history, and sometimes listing history. Realist.com is a company that often provides this information to Multiple Listing Services. Save a PDF version of the Tax Assessor Property Card to Realeflow or Dropbox to the documents section within Realeflow if the property is listed. You will want to check the information you gathered from the seller in Stage 1 and make sure it matches what you see on the tax assessor s property card. Look for discrepancies in information. You will want to check the information you gathered from the agent in Stage 1 and make sure it matches what you see on the tax assessor s property report. Look for discrepancies in information. If the property is listed make sure you verify that the information the seller or agent gave you about the property matches what is on the MLS Property Listing sheet. Look for a minimum of three to four sold comparables that are good after repair value comparables. Also, look for active properties and properties on deposit that have not yet closed to get a feel for what is currently happening in the market. When you pull your comparables you will want to eliminate properties that are not in after repair value condition. So you will be looking for properties that have been remodeled or properties that are traditional sales in good condition. You will want to eliminate comparables that are not in good condition because they are not after repair value comparables. Always search the MLS to see if the subject property was listed recently. At this stage you should determine whether or not this is a quality lead and if it has a high or low probability of being a deal. If it looks like a deal you may already have an appointment to see the property and if you don't you should call and set up an appointment as soon as possible. If it has a low probability then you want to call the seller/agent and give them a low verbal offer just to make sure you didn't miss anything. If the property is unlisted and it's not a deal then you may want to refer the property to a good agent you have a relationship with. If it is not a deal do not proceed any further or do any more due- diligence because your probably wasting time if you do. After you have selected the best after repair value comparables you will want to map them within the MLS. Most multiple listing services allow agents to map the comparable sales to make it very easy to see the distance between
o Select the Best Off Market Comparable Sales o Fill out the "Comp Evaluator" to help you determine the ARV o Start Filling Out The "Repair Estimator" o Fill out the "Deal Analyzer for Flips" o Create an Investment Summary o Print Out All Comparable Package Documents o Save All Documents to the Realeflow or Dropbox o Print Tax Assessor Property Card or Assessors Field Card the comparables and the subject property. This also makes it very easy to drive the comparables when you are doing your field appraisal. If you are just pulling comparables using the MLS you will also want to look for properties that sold within the last six months that were not listed by a Realtor. There are many websites you can use to pull off the market sold comparables like Zillow.com that pull in tax assessor sales. Most MLS's also have an area within the system to pull tax assessor sales, which would include both listed, and properties that sold that were not listed. Fill out the "Comp Evaluator" which you can download from the Mastery site. The "Comp Evaluator" is a guide/checklist to compare and contrast the different elements of your subject property with the elements of the 3 to 4 best comparables. You can use it purely as a guide or you can get more detailed and even make dollar value adjustments for differences in the properties. This will help you determine the properties "After Repair Value." Fill out the "Repair Estimator" that you can download from the Mastery site. The "Repair Estimator" is what you will want to fill out when you are estimating the repair costs on a property. Review the information you gathered from the seller/agent about the property and start filling out everything you know about the property from the information you gathered and the pictures you have if any. Enter a couple different purchase price, repair costs, and ARV scenarios into the "Deal Analyzer for Flips" that you can download from the Mastery site. That way you can start to dial in the most you will be willing to pay for the property and what your opening offer will be. You may choose to use the "Repair Estimator" within Realeflow opposed to printing a paper This is an optional step. On the "Repair Estimator Plus" a document you can find on the Mastery site we have a tab to create a one page Investment Summary. We use this doc to present the deal to a potential lender. It just makes it easier for a lender to review the deal quickly because all the information is on one page. Take all information & documents you have assembled in Stage 1 and Stage 2 and put together a Comparable Package. A comparable package is something you can take with you when you go evaluate the subject property and the comparable properties. Your comparable package includes 1) Seller Lead Sheet, Agent Lead Sheet and or MLS Listing Sheet 2) Tax Assessor Property Card 3) Map of MLS Comparables 4) MLS Comparable Property Listing Sheets 5) Off Market Comparables 6) Comp Evaluator 7) Repair Estimator 8) Deal Analyzer for Flips 9) Investment Summary Save your comparable package documents into the documents section of Realeflow or to Dropbox. Most Multiple Listing Service databases have tax assessor data built into the database where you can pull up online assessor property cards / field cards. You use this information to verify what the seller or agent told you about the property over the phone. If you don't have access to the MLS in your area you can call the tax assessors office and ask them if they have an online website where you can access property information about properties in the area. We use this information to pull our comparable sales in this stage. On the property card you will usually find information like owner info, tax assessment info, property characteristics, sales history, mortgage history, and sometimes listing history. Realist.com is a company that often provides this information to Multiple Listing Services.
STAGE 3 FIELD APPRAISAL o Make Sure You Have Contracts & Disclosures o Drive by the Subject Property to Confirm ARV o Drive by the Comparables to Determine ARV o Walk Through Active Listing Comparables (Optional) o Fill out the "Repair Estimator" on Paper or in Realeflow o Utilize "Inspection Checklist" if Necessary o Meet with the Seller or Agent o Adjust your Offer If Necessary o Sign Purchase & Sale Agreement, Addendums, & Property Disclosures o Discuss Access o Take Detailed Pictures and or Video of the Subject Property o Update the Property Record in Realeflow When you are going to meet with a seller or an agent make sure you have contracts and disclosures that you bring with you so you can write up and offer or sign a contract at the appointment. Before your appointment time drive by the subject property to get a feel for the property, the lot, location, exterior, etc so you can confirm what the ARV (after repair value) of the property. Before your appointment time drive by the comparable sales to get a feel for the property, the lot, location, exterior, etc so you can confirm what the ARV (after repair value) of the property. You should also take outside pictures of the comparables so you have them for your records. If you have time and you have set an appointment you might want to walk through 1 or 2 Active Listings that are comparables if they are in the neighborhood. This gives you a good feel for what prices properties are currently being listed at in the neighborhood. Continue filling out the "Repair Estimator" starting with the exterior to confirm what you believe the repair cost is going to be. If you are meeting with the seller/agent you will want to walk the property with them to make sure you have an accurate repair cost before making an offer. Some people prefer to bring their laptop and fill out the repair estimator in Realeflow on site. If you are relatively new to estimating repairs at a property and using the "Repair Estimator" utilize the "Inspection Checklist" on the Mastery Site. It is a great system you can follow to know exactly what questions you need to ask yourself and answer as you walk a property in order to estimate the repair cost. It is also very useful to utilize on a second walk through once you have gone to contract. Make sure you always walk the property with the seller / agent first before you start negotiating. If you are walking the property by yourself make sure you have the lockbox information. If you find the repair cost to be much higher or lower you will want to adjust your opening offer. If you are meeting with a seller you will most likely want to make your offer in person at the appointment and then sign the Purchase and Sale Agreement and any Addendums to the Purchase & Sale Agreement. Also, have the seller fill out all the appropriate Property Disclosures. If you are meeting with an agent you may choose to write up an offer at the appointment or when you get back to your office. If the offer is accepted you would then sign contracts and disclosures. Always discuss with the seller or agent how you will want to get access to the property while you are in escrow so you can create your scope of work, gather contractor quotes, and show potential buyers if you are wholesaling. Before you leave make sure you take detailed pictures and or video of the subject property. These pictures will help you start creating a "Scope of Work" and or marketing materials if you are going to wholesale the property. Update the Realeflow "property record" with additional details about the property after you go to contract. Make sure in the "Notes" section you document any conversations you have with the seller and or agent during escrow.
o Save Contracts/Disclosures to Realeflow or Dropbox o Make Sure You Have Contracts & Disclosures Save the signed contracts & disclosures into the documents section of Realeflow or to Dropbox. When you are going to meet with a seller or an agent make sure you have contracts and disclosures that you bring with you so you can write up and offer or sign a contract at the appointment.