Fix and Flip Properties in a Targeted Way with Benson Juarez

Background on Benson Juarez

Since 2015, Benson Juarez has worked for Privy Real Estate Investment Software in their Operations and Business Development department. He began his career at the company as a real estate consultant in 2004. Juarez has continued to function in this capacity in addition to his work in the Operations and Business Development department. In his earlier life, Benson Juarez joined the military and served in the air national guard. At one point, Juarez was called to active duty in Kosovo and Germany. Juarez’s home base has been Buckley air force base in Colorado, the state in which Juarez has continued to live. Juarez also has exhaustive experience as a youth mentor — at Colorado Youth at Risk from 2009 to 2011 and again from 2016 to 2017.

Not only has Juarez mentored children in his home state of Colorado, but he has also mentored kids on the West Coast. Juarez mentored children through Los Angeles Team Mentoring, Inc from 2012 to 2015. It was in Los Angeles that Benson Juarez launched a startup company in the FinTech arena. In the Connected Investors’ podcast episode upon which this article has been based, our host Sean Young describes Juarez as “resilient.” He also refers to Juarez as someone who has artfully and successfully combined “technology and real estate” throughout his career. 

What is Privy?

According to Privy’s site, the company offers “a class leading REI tool that helps you build a more complete understanding of the market.” Privy software helps users analyze “neighborhood and previous sale data to make smarter, data-driven moves” instead of wasting countless hours prospecting without clear direction. Available data is updated daily and fully streamed from the MLS. This data includes properties of all statuses, from under construction to active, and pending to sold. Privy is intended for investors of all kinds as well — wholesalers, career investors and those who are completely new to real estate. Ever the entrepreneur and seasoned tech and real estate expert, Benson Juarez leads us through how to sell virtual REO properties. He offers tips on how to do so effectively in an increasingly online landscape.

How to Fix and Flip Properties in a Targeted Way

#1 Remember That Data is King

Finding potential fix and flip property listings typically boils down to networking and expertise. This expertise will often be in the foreclosure space, as well as in construction and renovations. Clearly, understanding the current market value for nearby homes is essential to determining how much a house might be worth post-fix. However, listed market value of nearby properties will not account for planned renovations of the property in hand. This is particularly so if there has been little listing activity in a particular neighborhood of interest. Algorithms like those designed and employed by Privy help investors determine how much money to pour into a fixer property. They do so to prevent investors from making mistakes when attempting to list and sell the property and turn a profit. 

#2 Constantly Consider ARV

Sean Young explains in this Connected Investors’ podcast episode that ARV “stands for after repair value.” This is an especially essential data point for potential fix and flip properties. Sean notes that this value is “what the property is worth once it is actually…all fixed up and said and done.” Achieving an accurate ARV — according to Benson — “is key to your success and being able to deliver a proper deal” to prospective buyers. Unfortunately, it can be incredibly difficult — if not impossible — to determine true ARV in a property without extensive and exhaustive data access. 

Determining whether a property is actually worth the investment of a renovation is necessary at this point, Benson explains. This determination is best made by uncovering whether an area has “good investor activity.” As Benson explains, “if you get that ARV wrong, then you’re wasting a lot of time.” Just as flawed, Benson notes, is if “you’re targeting an area to invest in where there’s not fix and flip comparables to prove ARV.” Furthermore, this typically means that the process is “going to end up costing you in the long run.”

#3 Look for Investor Activity

Finding areas where there is “high investor activity” nearly always ensures a higher value offer on potential fix and flip properties. Benson notes that purchasing or financing potential fixer properties in areas of repeated and consistent investor activity “allows you to submit more realistic offers.” In doing so, you submit offers to your sellers that they will accept.” This increases the number of closed fix and flip property deals in an investor’s oeuvre. 

#4 Embrace Technology

As made especially clear during the COVID-19 pandemic, many industries must function in a constant state of flux in order to survive. Those that flourish often do so by embracing technology and adjusting to changing expectations of consumers. One of the ways in which investors and other real estate professionals have increased their profit — while limiting their time spent — is through automation. Benson notes that the best way “you can actually move [sales] forward is by using automation in your business.” Besonson recommends turning towards software like Privy to sift through the data for you. Employing software like Privy will allow you to find one or two properties worth fixing up and flipping — or otherwise investing in. 

With ARV being such a significant element in fix and flip property sales, software like Privy can be incredibly valuable. It is particularly valuable in virtual sales in which before and after photos are often selling points. Benson explains that Privy’s algorithms use “real-time data…to help you…find the hottest areas to invest in.” They do so in order to allow you to “prove ARV with fixing flip comps” immediately and accurately. Whether you are working off-market or on-market, you can “visually see…where the deals are getting done.” Through Privy, you can see “what they’re buying them for…what they’re selling them for.” This gives investors a clear picture of the market.

By remembering that data is paramount, investor activity is vital and technology can only help, fixing and flipping at a profit is more likely. Learn more about Benson Juarez’s incredible contributions to the fintech space and his expectations for the future of real estate here: [insert link].