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As a SWE and "retail" RE investor (I flipped 2 houses with ~15% return), a big problem with using online data to determine the value of the house is it just doe
by itake 7y ago
As a SWE and "retail" RE investor (I flipped 2 houses with ~15% return), a big problem with using online data to determine the value of the house is it just doesn't calculate the condition of the house. Even if you hire an inspector, they may end up missing something and you may end up needing to pay an extra $xx,000 in unexpected repair costs.
- loftyai 7y agoThat's a great point! This is why we deduct any home improvement costs from the gross profit calculation. So, if you spent 10,000 fixing the pipes and the gross profit was originally 100,000, we would actually deduct that from the gross profit. So our 20% share would be on top of 90,000 and not 100,000. Additionally, most of our customers still visit the properties we recommend before they buy, so these types of problems are usually spotted during inspection before the deal closes. This has filtered out any bad quality deals due to home conditions. Hope this answered your question!