After we identify a potential investment property, we use our own internal valuation software to assist in determining an asset's worth. To give you an idea of our extensive due diligence, check out the structure below.   We are positive you will appreciate the great lengths we go to in order to properly assess your investment property: 

1. Our realtor or management team will put together a Comparative Market Analysis of each prospective property. This CMA will identify the most recent and most comparable sales over the last year in the same neighborhood. This will give us a good idea of the market and what is selling and what the sales trends have been. This is our starting point. If the numbers look good at the outset, we move forward to…
   
   
   
2. The Inspection report: Blue Moon Capital orders an independent property inspection report to determine the condition of the property. We make sure there are no serious structural problems or any issues that would cause the rehabilitation to be unmanageable. See an example inspection here. This inspection report will also give our contractors a good blue print to work off of, leading us to…
   
   
   
3. The detailed rehabilitation bid or Scope of Work (SOW): The scope of work, which is based on the inspection report, will let us know how much we are going to have to spend on the property to bring it to its top market valuation. Based on the scope of work, we know our budget, our time frame and areas of renovation.  See an example SOW here. If anything comes up on the scope of work that we don’t like, i.e. high costs or extensive, long term care, we pass…
   
   
   
4. If we like the inspection report and the SOW, we proceed to order TWO INDEPENDENT 3rd party appraisals. These are subject-to SOW completion studies completed by lender approved appraisers. We need to know what the property is ultimately going to be worth once we complete the above referenced renovations. If the values come in too low, we pass. If the appraisals come in too far apart, we pass. We only move forward if the numbers work.
   
   
   
5. Finally we run our own internal automated valuation model (AVM) to determine not only the property’s projected value, but to determine its risk by assessing what is happening to other homes in close proximity. We can get the total history of any property and the history of the surrounding properties. This is extremely helpful in determining market value and long term viability. In conjunction with our AVM software, we also use additional software to determine the property’s potential cash flow and long-term returns. All this information assists us in determining what properties are best for you. 

If anyone of the above due diligence fails to meet Blue Moon’s strict criteria, we cancel the property and move on. However, if it passes, we know we have a winner. The best part about it, we provide all this due diligence to you for free so that you are confident that your investment will meet or exceed your expectations.