E58: How Inspections Can Increase Property Value with Josh Jensen

Real Estate Hackers

English - July 06, 2022 13:43 - 44 minutes - 101 MB - ★★★★★ - 54 ratings
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Previous Episode: E57: Pittsburgh: The New Hot Market for Real Estate Investors with Gabe Gordon

Next Episode: E59: Why You Should Invest in Fractional Real Estate with Sundance Brennan

Investing in real estate isn’t easy, but with the right tools in your arsenal, it can be much less daunting. One of those tools is a property inspection.

In this episode of Real Estate Hackers, we discuss the importance of inspection data and how it can help increase your property value. By getting a professional evaluation of a property, you can reduce the chances of making an expensive mistake — and that’s something every investor should keep in mind.

Here are some power takeaways from today’s conversation:

Use inspection data to make informed decisions.
Get desktop or hybrid appraisals.
Connect previous data with future touchpoints.
Find third parties to be on the ground.
Be creative with your capital.

Episode Highlights:

[08:49] Data Application

Micro application is where data is collected and connected to transactions after the initial one. By collecting clean, structured data, there will be significant operational savings as it helps automate work. Desktop and hybrid appraisals offer quick due diligence and valuation.

Macro application, on the other hand, is where inspection data aggregated across millions of homes can be used in heuristics to predict future value and rehab costs.

[19:19] Using Inspection Data in the Future

Many touchpoints happen during the life cycle of a property where data needs to be captured. Connecting previous data with future touchpoints can make them more effective.

[26:41] Data and Flipping

Since land is scarce, real estate is the best investment class. So instead of flipping houses, hold onto your property and be creative with your capital.

[31:33] Spotting High Variance in the Data

Be cautious about “weekend warrior work” or work on a property done by the homeowner. If you don’t have the budget to sell and build from scratch, walk away from it. Data can help capture those hidden aspects of a property.

[38:11] Future Developments

Increased institutional interest in short-term rentals will allow more people to get into investing. Transactional and management tools will be more digitized. Expect more rent appreciation and more opportunities within the investing space.

Notable quotes from the Episode:

[13:07] “If your data structure is not perfect, if your pricing is not perfect, and you’re doing it at amazing scale, like highest scale, you can lose a lot of money.”

[15:45] “In a market where velocity is both king and queen, being able to offer a very, very quick turn on both diligence as well as valuation can make or break the deal.”

[35:41] “There’s this tremendous opportunity to inspect homes uniquely, because they’re all heterogeneous, to create a much better output in terms of inspection.”

Resources Mentioned: