If a property has been visited, these ratings are dead on. If the property hasn't been visited, the property may have one or two of these ratings off. This is why we do not allow investors to make offers on properties that have not been visited.
Equity
Excellent
Poor
This rating is based on the percentage difference between list value and our estimated value.
A Rating
Means the property is listed below anything sold recently.
C Rating
The list price is at market.
F Rating
We don't recommend purchasing because you are paying too much.
Income Rating
Excellent
Poor
This rating is based on return on cash aka Capital return aka ROI.
Here are the factors used to determine income:
Rental Income
We have 20 years of property mangement experience and "move" about 4 properties a week. Properties that have not been surveyed are probably off by about $100 as the condition of the property can't be done by desktop.
HOA Fees
This is the dollar amount listed publicly.
Taxes
This is the dollar amount listed publicly.
Condition
Excellent
Poor
This the overall condition of the property.
A Rating
Usually less than $1000 in repairs. Lock changes, air filters & miscellanous items.
C Rating
Property needs carpet, paint & cosmetic stuff.
F Rating
Property has major structural issues or massive water / mold damage.
Desire
Excellent
Poor
This is the most controversial of our ratings. This rating is based on ownership pride in the neighborhood. Also, properties that are on a busy street have a negative impact on desire of the home. A house could be in Summerlin for example but sit on a busy street knocking it down from an A to a B.
This rating is not based on the racial mix of the neighborhood. There are all white neighborhoods for example that get an F rating because it's full of tweakers. We frown upon investors who ask for specific ethnic neighborhoods and it's illegal for us to even discuss it.
A Rating
The neighborhood is squeaky clean. All the houses are well kept, the landscaping is perfect and there is no debris about. About 10% of our portfolio is in these types of neighborhoods.
C Rating
Most houses are in good order but there are a few rebel neighbors who have a cars that are not functioning. About 50% of our portfolio is in these types of neighborhoods.
F Rating
Debris is everywhere, cars are on jacks and some home boys are drinking in the driveway. About 10% of our portfolio is in these types of neighborhoods.
Square Footage
Excellent
Poor
This is the only rating that is not an opinion. Simply the list price divided by square feet.
No. There simply isn't enough time to survey 600 properties a day. The majority of the properties we survey are ones we know investors will purchase: 3/2/2s under $200k.
Properties that have not been visited are usually off one rating. Properties that have been visited will show a dollar amount in the repair column and an ROI percentage in the last column.
In order to make an offer, you will be required to send us proof of funds (bank statement / lender letter), a check for $3k for the earnest money deposit AND your signature to generate the purchase agreement.
If the property is in "A" condition, your chances are nill. 140 properties a day are being snapped up and properties that are in "A" condition usually go about 10% above list. If the property is in "C" condition, you can usually get it at about list.
We have found that 90% of the investors will change their mind about purchasing a property as short sales can take as long as 2 years to close. We charge a $500 non-refundable fee to make short sale offers. That fee can be applied to the purchase. We did this to make investors seriously consider making these offers.
