Congratulations on completing the course. In this video, get some final reminders and caveats.
- Hey, congratulations on completing this course. … Now I just have a final parting thought for you. … Just because the formula and the approach … is straight-forward, doesn't mean that it's easy … to come up with accurate and useful MAOs. … It's really going to depend on your ability … to get accurate, similar comps in your market … so that you can get an accurate … after repair value calculation and on the other side, … your ability to come up with accurate rehab assessments. … If you're wrong on either of them, … you're not going to be able to come up with accurate MAOs. … If you're off on the after repair values, … you're going to be making poor offers either way. … But if you miss on the rehabs, … then you're going to be underestimating the cost … and overestimating what you can pay. … So don't get either of them wrong. … It takes practice, it takes time, … you're going to have to get to know your market, … get to know your buyers in your market … but with some practice with what you learned here …
- Name the formula used to calculate the MAO from the AVR.
- Summarize the 70% rule.
- Differentiate between the rehab estimator, ARV, and MAO calculator worksheets.
- Describe the factors in an AVR estimate.
- Cite the formulas that are helpful when pitching to a flip investor buyer.
- Explain the difference between recently sold comps and rental comps.