House flippers are always on the hunt for the best tools to find the best properties. With a fast-moving market and even faster-moving properties, there is no time to waste when looking for the next great deal. That is why Prime Plus Mortgages has made a home valuator to make house flipping and investing easier. With rehab valuator, you can have the must-have formulas for your flip in one convenient place. You even can compute your ideal properties to tweak what kind of repairs you need to make.
This home rehab valuator makes it easy to get the information you need to flip houses and determine if your flip is a flop.
With these numbers, get the need to know the numbers you need for your home rehab. This rehab valuator makes it easy for real estate investors to know if their properties are at the value they need.
Take your house flipping to the next level with our Home Rehab Valuator.
How To Use A Rehab Valuator To Find A Flip
Finding a house to flip or rent is no small undertaking. With fast-moving markets and quick changing property values, finding the right home and making the right repairs can be tricky. That’s why our home rehab valuator uses the after repair value to help you find a flip.
After repair value, or ARV, is an estimation of a flip value after repairs. This is a common formula for house flippers, Private money lenders, and real estate investors to estimate a properties future value. This rehab valuator uses your arv to help you determine the value of your flip, which is perfect for choosing repairs and finding funding.
This is a basic formula for ARV:
ARV = Property Purchase Price + Renovation Value.
After repair value combines the property’s current value, with the cost of repairs to help flippers see if the repairs are right, or if the property is not an ideal candidate for a flip. Comparable properties or comps are often used to determine the property’s current value.
Some Factors on a Properties Current Value Are:
- Location (neighborhood, accessibility, proximity to amenities, etc)
- Lot (size, corner or interior, shape, slope, terrain, roads available, etc)
- Structure (size, number of stories, type, style, etc)
By using comps that are similar to the home you want to flip, in terms of location, lot, and size, you can get a fairly accurate idea of how much your flip should value for. You will also need an estimate of repairs you plan to make to a property to calculate for ARV in our home rehab valuator.
Quotes from contractors are often used to value the repair worth, but comps can be useful for homes that have a similar layout and have the features you plan to add. You can even get a good idea of how these repairs will sell in your market if you use recently sold comps.
Using the home rehab valuator you can easily know your ARV of any property, and make adjusts for funding and repair types.
How To Value Your Flip With The Rehab Valuator
Using the right formulas for your properties is key when using a rehab valuator. There are many different ways that real estate investors track and value their rehabs. Rehab Valuators are always handy for investors because they make it easy to track the vital numbers that real estate investors need to know.
For most investors, tracking profits, returns and costs are always important! So what are the best ways to track and value your rehab? We already spoke on ARV on how important it is for real estate investors looking to value their flips. A basic ROI formula looks like this. ROI=(Gain−Cost)/Cost. For real estate investors will want to track the property repairs and long-term costs.
For most real estate investors, tracking your Return On Investment is key.
The top ways real estate investors track their returns are:
- The Cost Method:; ROI= (Equity)/Cost
- Out Of Pocket Method: ROI= Annual Cash Flow / Total investment cash
For house flippers using the rehab valuator for flip, the cost method can be useful for tracking all the expenses related to repairs, renovations, and purchases for a flip. For real estate investors it’s crucial to track any of the expenses involved in renovating and repairing the property. This is perfect for the flippers looking to only make one time repairs to a profit before they sell.
The out of pocket method is perfect for real estate investors with rentals. this method offers more flexibility for rentals, the annual cash flow can negate the cost of the flip. This method only counts the total money house flippers put into a property, out of their own pockets.
While making sure you get a return on your flip is important, calculating for profit requires a different formula.
Profit = Project Revenues – Project Expenses
On average, a rehabber shoots for a 10 to 20% profit of the After Repair Value, but it varies depending on the market and the specific project risks. With our rehab valuator you will be able to estimate your profits based off your after repair value.
Use The Rehab Valuator To Fund Your Rehab
After finding a great flip, with good returns, and after repair value, finding the best funding for your flip is key. You can use your after repair value of your property to look for the best rehab funding.
Hard money lenders fund real estate investments based on the value of the property. For investors, some hard money lenders can base the value of the loan on the After repair value. Most private money lenders will lend up to up to 65 – 75% of the current value of the property. Some hard money lenders can offer more financing, with amounts around 80-90% but it depends on the after repair value and the property itself.
Hard money loans offer the most flexibility for new and seasoned investors. These asset-based loans make it easy for investors to get the fast funds they need for their investments. The hard money loan is tied to the after repair value of a property, and can be approved in as little as 2 days! Which means no lengthy credit checks, and fast funds for quickly moving properties.
Find the best lenders and check:
- Rates and Terms
- Turnaround Times
- Arizona Hard Money Lender Reviews
- Customer Service
You should always see what the terms and rates will be for your hard money loans as it determines your payment methods. Hard Money lenders should also provide short turnaround times as well! Look for customer reviews to see what others’ experiences working with this lender. Reviews can also give insight into the customer service to a company and how they help you get your hard money loans.
Prime Plus Mortgages, the fastest private money lender in Arizona makes it easy for real estate investors to get what they need for investments on their timelines.
Using the home rehab valuator can help you determine a good flip, and find the best loans for those properties.
Summary
With a hot real estate market that changes quickly, having access to an easy use tool for real estate investing is a dream come true. Our Home Rehab valuator makes it easy to determine the after repair value of a property, help you estimate profits and returns and is perfect for checking the viability of a flip.
- How A Rehab Valuator Finds A Rehab: using the after repair value, you can learn about the estimated returns and cost of a flip. It’s important to have repair estimates and comparable properties to use a frame of reference for your flip.
- How To Value Your Rehab: Pair your preferred ROI and profit formulas for flipping, and when paired with your rehab valuator you can learn what your break-evens and profit margins are.
- Use The Rehab Valuator To Fund Your Rehab: Need a hard money loan for your flip? Use the rehab valuator and the projected ARV to talk with your lender to get the funds you need for your flip!
You can get the home rehab valutor here!
