ARV & COMPING
What is the ideal radius for pulling comps in a typical suburban neighborhood?
About 0.25 miles (expand only if needed).
Paint, flooring, fixtures, and appliances typically fall into what rehab tier?
Light rehab.
What is the BEST question to ask an agent to uncover their seller’s motivation quickly?
What’s prompting your client to make a move right now?
What does “Subject-To” mean?
Buying the property while leaving the existing mortgage in place.
What inspection is commonly required before selling in Minneapolis-type markets?
TISH
Which matters more: a comp that is closer in distance or closer in square footage?
Square footage — buyers price based on livable space.
What rehab tiers usually starts when you are opening walls or moving plumbing?
Medium to heavy.
Which agent statement signals REAL distress?
A) “They want top dollar.”
B) “They’re still fixing it up.”
C) “They’d prefer a quick, as-is sale.”
D) “They’re interviewing agents.”
C — speed + convenience usually equals motivation.
What type of property is IDEAL for seller financing?
Free and clear.
Why are unpermitted additions dangerous?
Appraisal and financing risk.
If the subject is fully renovated but your comp is outdated, should you adjust up or down?
Adjust up!
Name the repair that can destroy a flip budget faster than almost anything else.
Foundation issues.
What follow-up question helps determine how flexible the seller may be on price?
If we could solve the condition and timeline for them, how open are they to reviewing investor-level offers?
Why might a seller prefer seller financing over cash?
Monthly income + potential tax advantages.
What should you verify FIRST when a seller mentions liens?
Payoff amount.
A comp closed yesterday but has 1 fewer bathroom. Is it still strong?
Yes — bathrooms are adjustable; recency is powerful.
Why should acquisition agents slightly OVERestimate rehab when analyzing deals?
Investors prefer margin — surprises kill deals.
If an agent says the seller is relocating, this is the BEST question to expose timeline pressure.
When do they need this property sold by?
What clause is the primary risk in a Sub2 deal?
Due-on-sale clause.
A property priced at retail with zero updates is usually what for investors?
Creative or pass on the property. Dont waste time on deals that are NOT in our clients buy box.
Inventory is extremely low and your best comp is 9 months old. What MUST you check before trusting the price?
Market appreciation trends and pending sales.
Which is usually MORE expensive: adding a bathroom or adding a bedroom?
Adding a bathroom (plumbing + drainage)
Why is it important to find seller motivation
It tells you how to structure the offer around what the seller truly values.
No motivation = competing with retail buyers.
High motivation = you can create terms that win.
When does creative financing become MORE attractive than a cash offer?
When the seller prioritizes payment, tax strategy, or price over speed.
What is often MORE dangerous than a big repair issue?
Title issues!