AI Deal Analysis
Identify profitable exits instantly. Learn how AI performs rapid comps analysis, cash flow projections, and risk assessments.
The Art & Science of Valuation
Every real estate deal hinges on one number: The After Repair Value (ARV). Get this wrong, and no amount of renovation can save you.
Traditional Appraisers look backward at what sold. Investors must look forward at what will sell. AI bridges this gap by analyzing market velocity, not just price history.
Components of AI Analysis
1. Automated Comparable Sales (Comps)
Finding valid comps is tedious. You need properties sold in the last 6 months, < 1 mile radius, similar sqft, same bedroom count, and similar condition.
DealsEngine does this in milliseconds. It filters out non-arm's length transactions (family transfers) and distressed sales to find the true market value. It even adjusts for differences (e.g., adding $15k value for an extra bathroom).
2. Market Sentiment Analysis
Prices don't exist in a vacuum. Is the neighborhood appreciating or declining?
- Days on Market (DOM): AI tracks tracking DOM trends to predict how long you'll hold the asset.
- Listing Price vs. Sold Price: Measuring the "discount spread" to see how much negotiating power buyers currently have.
- Search Demand: Integrating search volume data to identify "hot" zip codes before prices spike.
Maximum Allowable Offer
The AI reverse-engineers the deal: ARV - Repairs - Holding Costs - Desired Profit = Your Offer Price. It keeps you disciplined.
Exit Strategy Optimization
Should you Flip, Rent, or Wholesale? AI runs parallel scenarios to show which exit yields the highest ROI given current interest rates.
Interpreting the Deal Grade
DealsEngine assigns a simple letter grade (A+ to F) to every deal. Here is how to read it:
- A Grade: Exceptional spread. Likely a heavy distress situation. Move fast.
- B Grade: Solid deal with standard margins. Good for buy-and-hold or low-risk flips.
- C Grade: Thin margins. Only pursue if you have a competitive advantage (e.g., you are the contractor).
- D/F Grade: Overpriced or negative cash flow. Pass.
Risk Factors
Always check the AI Risk Assessment section. It highlights potential deal-killers like "Located in a Flood Zone," "High Crime Area," or "Declining Population" that pure math might miss.
Conclusion
Data beats gut feeling every time. Use AI Deal Analysis to validate your intuition, present credible offers to sellers, and ensure you never buy a bad deal.