Today we are excited to have Gideon Sylvan of Pellego on the Seattle Investors Club podcast!
Who is Gideon?
Gideon Sylvan is a real estate investor, and the founder, and CEO, of a technology startup company called Pellego (click here to check it out. Pellego has created software that helps Real Estate investors identify good deals for sale, and accelerate there ability to analyze quickly, and offer on these properties.
Asks about who uses Pellego and what kind of info is available on Pellego?
Pellego currently works with a lot of house flippers, and people who are working with house flippers.
House flippers spend a lot of time analyzing deals, and organizing comps. what we do is shorten the amount of time required to analyze a deal and make a good decision on a property
Pellegro has many different users from, hard money lenders, wholesalers, real estate agents, etc.
Speaks on the biggest time suck in there business….analyzing deals! Pellego is an awesome tool to save tons of time, sifting through comps, and analyzing properties!
Pellego is also a broekrage?
We are. The website is free to use, anyone can use it.
Premium version offered for investors who are looking for more deals, and more due diligence.
Some examples of what they offer is; finding under zoned listings, development related deals, low ball opportunities ( listing’s that are ripe for a lower offer)
How is the data compiled to make it easier for investors to analyze there deals?
Yea, how it works is we modeled 13,000 historical flips in the greater Seattle Market. We tried to replicate at the time, the best comps to use, what the property sold for, etc. The system learns from that historical data and brings it in to the analysis of any potential flip opportunity.
How do you adjust the data to fit the data in todays market, since there is appreciation and so forth on the market?
We found that there is a rule in the industry to use the most recent comps. i.e. 3-6 months at the oldest.
What we found from preparing these algorithms, that when extending comp ranges past 6 months or even 2 years there is a higher percentage of accuracy in finding the ARV of a property in todays market.
The Pellego system will predict how these comps will have appreciated comparatively on todays market.
What they’ve found is Pellego is able to take a lot of the outliers found in the market when purchasing properties. For example a comp that may have had a motivated buyer who pays over asking price effects the ARV of a property. Pellego can zoom out and take a more accurate picture of the analysis so investors can plan for any buyer, or situation. This is important so investors can look at there properties more critically.
Within the pellego system there are calculators & estimators that you can plug numbers in and make your own adjustments?
Yea you can adjust the #’s and comps as much as you want. You can analyze a a flip ,hold, BRRR, and save it, and return
If your looking to make an offer, we do recommend contacting one of our brokers to help you nail down the numbers, and come up with a strategy for your offer.
Whats cool, is the amount of diverse information thats provided on the internet sight. From the amount of cash your going to need to close a deal, to the likely hood of your offer getting accepted.
Are you operating in just Seattle?
Yea, were excited to bring it across the market over the next few years. Pellegro has a couple markets that there looking at. First markets that they will get in to will be in early 2018, The exact deals weren’t given, but for sure California!
Any other details you want to share?
The majority of investment purchases are bought on the MLS. This has been true for almost a decade.
We want to promote the MLS. When I think of MLS I think of one of the more pure forms of Real Estate investing.
Sending out letters, putting out signs is one way of sourcing deals, But that isn’t investing, its marketing.
Investing is the actual decision to purchase. What we like about the MLS, and Pellegro is that we can tap in to these tools, and algorithms to create more opportunities for investors to find deals.
You can see Julie is super curious already! As she surfs through Pellego to find information on her own deals in the Seattle market!
Is Pellego hiring brokers right now?
Currently Pellego is looking to add a couple more brokers. But one big thing they are doing is assembling a field team to go out and find leads, so our brokers have more time to answer calls, and help clients, etc.
One thing that we continue to improve at is finding out what the agents can be good at, and what the technology can be good at. That’s why we keep our agents involved in is the negotiating, and presenting of the offers.
Julie speaks on the different ideas that she would like to see in the market place, and encourages users to contact Pellegro and give them feed back so they continue to implement technology in our business, and make tools that help us become more effective in our business!
Don’t get left in the dust by the smart investor!
Pellego offers Private 1 on 1 user training for anyone, just give them a call and they will help you out in person, or over screen!
We are Passionate about helping investors learn our systems, and philosophy, and always looking for feedback to help make our tools more efficient
Thank you Gideon for stopping by!
Email – [email protected]