Krunching – An In Depth Look at the New Investor Tool
I recently published an article about a valuable new tool I discovered on the Internet and shared with my readers. This incredible website crunches numbers for investment real estate – and in the Hemet – San Jacinto Valley, we have a lot of properties that will generate a positive cash flow. In case you missed the article you can go back here and read about Krunching.
The purpose of this article is to go through the site and take a deeper look at what is offered for free.
The first search I did came from the “Find Investment Properties” search found in the upper menu area, in the center – nest to the blue magnifying glass icon.
I was given the opportunity to limit my search by county, city, zip code, the entire state of California, as well as by zip code. There were a couple of other limitations that did not make sense to me – maybe next time I play, I’ll look closer at those.
In any event, I selected my zip code of 92544, singe family detached homes under $150,000. The results were 88 Active listings with 45 of them reporting a positive cash flow.
The reported positive cash flow ranges from $5,517 per year down to a $82 return on your investment. The Hemet homes that reported a negative cash flow started at $114 per year and ranged all the way to a negative $4,125 with 6 reporting results of unknown.
When I click on the link, a clean page opens up with basic MLS data to include the listing agent and the MLS number. There are of course photos (apparently up to 6 can be displayed) as well as 6 tabs that allow you to look at additional details such as “County”, “Comps”, “Investment Summary”, “Investment Detail” and “Area Statistics”.
COUNTY TAB
This is pretty basic information that REALTORS® can typically get their hands on through the various Title Company websites, where they have accounts. It confirms the physical characteristics of the home as well as tax data and limited information on the last transaction. There is data that is held back for the paid subscribers, such as the current ownership and the loan details.
A nice feature that is reserved for the paid subscribers is “Underwriting AVM”. Apparently, the site will assign a value for the property based on their proprietary algorithm and then crunch the numbers to determine what the current Loan to Value is.
COMPS
A nice use of Google Maps where comps are identified within a 1.5 mile radius. The first 6 show up on the first screen shot and then you have the opportunity to “Show All”. You can also select the comps you want to view and narrow the search down to what you believe are the best comps to use in your analysis.
Remember now, these are only ACTIVE Comps – if you want the sold, you have to be prepared to pay the monthly fee.
Interestingly the data in the grid shows DAYS on MARKET (DOM). I was under the impression that the MLS quit sharing that information and it was only available on the AGENT REPOERT in the MLS. I’m not happy with that, hmmmm.
At the bottom of the page is a RENTAL COMPARABLE summary. Be careful if you select one of the reports available here – it will take you to a whole new site and you may lose your location and have to re-enter the criteria that got you where you were.
INVESTMENT SUMMARY
This is the interactive calculator where you can play with the numbers and KRUNCH away.
This is a real cool tool – as quick as you change a variable the Summary changes. There are a series of built in variables for you to select from and of course you can always put in your own custom numbers.
The seven variables that you can work with include, Purchase Price, Market Value, Market Rent, Appreciation (%) over a 5 year span, Rent Adjustment (%) also over a 5 year span, Financing options and Operating expense options.
You can spend some time here – playing the old “what if” game. It is kind of fun, too.
The summary itself spans out 5 years and covers Sales Value, Rents, Cashflow Before Taxes, Cash-on-Cash Return and Capitalization Rate.
INVESTMENT DETAIL
This is another page chock full of valuable information that I believe is generated based on the current scenario from the Investment Summary tab. This page breaks each category down into a five year analysis.
First there is the Net Operating Income report that covers Maximum Possible Rent, Vacancy Allowances, Management Fees, Tax Assessment, Insurance Service and Repairs leaving you with a 5 year projection of Net Operating Income.
The Cashflow report crunches the Net Operating Income and deducts the Debt Service, leaving you with the Cashflow Before Taxes.
As an investor, there always has to be an exit strategy to every property and of course this program allows the user to look at the
Sales Proceeds from a Hypothetical Sale. It takes into consideration the cost of the sale, the mortgage payoff, the amount of principal paid on the debt and then your Before Tax Sales Proceeds.
The tab ends with a look at the Basis, creating an Adjusted Basis and then looking at the Taxable Gain/Loss.
AREA STATISTICS
The final tab has limited free information – most of it is reserved for subscribers. Again, this is information that any REALTOR® worth their salt already can provide their real estate investor clients. We are talking about Property Types, Occupancy and Vacancy.
There is a grid that tells the viewer how many Residential addresses are in the tract as well as the Zip Code and how many vacancies there are (both in a real number and a percentage) and then the same for Commercial Addresses.
CONCLUSION
When all is said and done I have to admit that I am impressed with the accuracy of the data that Krunching provides. They do a very good job in presentation – not overloading any one page, but keeping the relevant data together. I am certain that this will become a powerhouse real estate website…maybe even still another place for us to advertise or to buy leads. Oh well, at least we still live in a free market economy.
Now have a blessed day,
John Occhi, REO REALTOR®
Century 21 Crest – CrestREO
www.CrestREO.Com
Blessings to all who read this,
John Occhi, REALTOR®
Century 21 Crest - CrestREO
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473
<!--[if gte vml 1]><v:shapetype id="_x0000_t75" coordsize="21600,21600" o:spt="75" o:preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"> <v:stroke joinstyle="miter" /> <v:formulas> <v:f eqn="if lineDrawn pixelLineWidth 0" /> <v:f eqn="sum @0 1 0" /> <v:f eqn="sum 0 0 @1" /> <v:f eqn="prod @2 1 2" /> <v:f eqn="prod @3 21600 pixelWidth" /> <v:f eqn="prod @3 21600 pixelHeight" /> <v:f eqn="sum @0 0 1" /> <v:f eqn="prod @6 1 2" /> <v:f eqn="prod @7 21600 pixelWidth" /> <v:f eqn="sum @8 21600 0" /> <v:f eqn="prod @7 21600 pixelHeight" /> <v:f eqn="sum @10 21600 0" /> </v:formulas> <v:path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect" /> <o:lock v:ext="edit" aspectratio="t" /> </v:shapetype><v:shape id="_x0000_i1025" type="#_x0000_t75" alt="CrestREO" style='width:158.25pt;height:46.5pt'> <v:imagedata src="file:///C:\DOCUME~1\ADMING~1\LOCALS~1\Temp\msohtml1\01\clip_image001.gif" o:href="http://activerain.com/image_store/uploads/5/2/3/0/5/ar121082945150325.gif" /> </v:shape><![endif]--><!--[if !vml]-->
<!--[endif]-->
Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner.
This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.
This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.
I am proud to be a full time REALTOR® with Century 21 Crest and the CrestREO Division who is proud to be a contributing member of the ActiveRain community.
call me direct for your Hemet – San Jacinto Valley Real Estate needs, 951-443-6259
Okay...that is too much to ask of every movie, I know. But in this case, Hollywood has delivered.
