RealVest Real Estate MCP Server

/** * Wholesale Deal Analyzer * Analyzes wholesale real estate deals with assignment fees, profit margins, and exit strategies */ export class WholesaleDealAnalyzer { getSchema() { return { type: 'object', properties: { property_details: { type: 'object', properties: { address: { type: 'string', description: 'Property address' }, property_type: { type: 'string', enum: ['single_family', 'multi_family', 'condo', 'townhouse', 'commercial'], description: 'Type of property' }, square_footage: { type: 'number', minimum: 0, description: 'Total square footage' }, bedrooms: { type: 'number', minimum: 0, description: 'Number of bedrooms' }, bathrooms: { type: 'number', minimum: 0, description: 'Number of bathrooms' }, year_built: { type: 'number', minimum: 1800, description: 'Year property was built' }, condition: { type: 'string', enum: ['excellent', 'good', 'fair', 'poor', 'distressed'], description: 'Current condition of property' } }, required: ['property_type', 'condition'] }, purchase_details: { type: 'object', properties: { contract_price: { type: 'number', minimum: 0, description: 'Price under contract with seller' }, earnest_money: { type: 'number', minimum: 0, description: 'Earnest money deposit' }, inspection_period_days: { type: 'number', minimum: 0, description: 'Inspection period in days' }, closing_date: { type: 'string', description: 'Expected closing date' }, seller_motivation: { type: 'string', enum: ['very_high', 'high', 'moderate', 'low'], description: 'Level of seller motivation' }, days_on_market: { type: 'number', minimum: 0, description: 'How long property has been listed' } }, required: ['contract_price'] }, market_analysis: { type: 'object', properties: { arv: { type: 'number', minimum: 0, description: 'After Repair Value (ARV)' }, repair_estimates: { type: 'number', minimum: 0, description: 'Estimated repair costs' }, comparable_sales: { type: 'array', items: { type: 'object', properties: { address: { type: 'string', description: 'Comparable property address' }, sale_price: { type: 'number', minimum: 0, description: 'Sale price' }, square_footage: { type: 'number', minimum: 0, description: 'Square footage' }, days_on_market: { type: 'number', minimum: 0, description: 'Days on market' }, sale_date: { type: 'string', description: 'Date of sale' } }, required: ['sale_price'] }, description: 'Comparable sales data' }, neighborhood_grade: { type: 'string', enum: ['A', 'B', 'C', 'D'], description: 'Neighborhood quality grade' }, market_trend: { type: 'string', enum: ['appreciating', 'stable', 'declining'], description: 'Current market trend' } }, required: ['arv'] }, wholesale_strategy: { type: 'object', properties: { assignment_fee: { type: 'number', minimum: 0, description: 'Planned assignment fee' }, marketing_budget: { type: 'number', minimum: 0, description: 'Budget for marketing to buyers' }, holding_costs_daily: { type: 'number', minimum: 0, description: 'Daily holding costs' }, target_buyer_type: { type: 'string', enum: ['fix_flip', 'buy_hold', 'owner_occupant', 'developer'], description: 'Target buyer profile' }, buyer_list_size: { type: 'number', minimum: 0, description: 'Size of active buyer list' } }, required: ['assignment_fee'] }, analysis_options: { type: 'object', properties: { include_exit_strategies: { type: 'boolean', description: 'Include alternative exit strategies' }, calculate_buyer_analysis: { type: 'boolean', description: 'Calculate end buyer deal analysis' }, risk_assessment: { type: 'boolean', description: 'Perform comprehensive risk analysis' }, market_timing: { type: 'boolean', description: 'Analyze market timing factors' } } } }, required: ['property_details', 'purchase_details', 'market_analysis', 'wholesale_strategy'] }; } calculate(params) { const { property_details, purchase_details, market_analysis, wholesale_strategy, analysis_options = {} } = params; // Calculate wholesale deal metrics const deal_metrics = this.calculateDealMetrics( purchase_details, market_analysis, wholesale_strategy ); // Analyze end buyer's deal const buyer_analysis = analysis_options.calculate_buyer_analysis ? this.analyzeBuyerDeal( purchase_details, market_analysis, wholesale_strategy ) : null; // Calculate profitability const profitability = this.calculateProfitability( deal_metrics, wholesale_strategy ); // Risk assessment const risk_analysis = analysis_options.risk_assessment ? this.assessRisks( property_details, purchase_details, market_analysis, deal_metrics ) : null; // Exit strategies const exit_strategies = analysis_options.include_exit_strategies ? this.analyzeExitStrategies( purchase_details, market_analysis, deal_metrics ) : null; // Market timing analysis const market_timing = analysis_options.market_timing ? this.analyzeMarketTiming( market_analysis, purchase_details ) : null; return { property_summary: this.createPropertySummary(property_details, purchase_details), deal_metrics, profitability_analysis: profitability, buyer_analysis, risk_assessment: risk_analysis, exit_strategies, market_timing, recommendations: this.generateRecommendations( deal_metrics, profitability, risk_analysis, market_analysis ) }; } createPropertySummary(property_details, purchase_details) { return { ...property_details, contract_price: purchase_details.contract_price, price_per_sqft: property_details.square_footage ? purchase_details.contract_price / property_details.square_footage : null, seller_motivation: purchase_details.seller_motivation, days_on_market: purchase_details.days_on_market }; } calculateDealMetrics(purchase_details, market_analysis, wholesale_strategy) { const contract_price = purchase_details.contract_price; const arv = market_analysis.arv; const repair_costs = market_analysis.repair_estimates || 0; const assignment_fee = wholesale_strategy.assignment_fee; // Calculate end buyer's acquisition cost const buyer_acquisition_cost = contract_price + assignment_fee; // Calculate maximum allowable offer (MAO) for end buyer const buyer_profit_margin = 0.15; // 15% minimum profit for buyer const buyer_holding_costs = arv * 0.03; // 3% for holding costs const buyer_closing_costs = arv * 0.02; // 2% for closing costs const buyer_mao = arv - repair_costs - (arv * buyer_profit_margin) - buyer_holding_costs - buyer_closing_costs; // Wholesale deal analysis const wholesale_spread = buyer_mao - contract_price; const assignment_fee_percentage = (assignment_fee / contract_price) * 100; const buyer_total_investment = buyer_acquisition_cost + repair_costs; const buyer_equity_position = arv - buyer_total_investment; const buyer_roi = (buyer_equity_position / buyer_total_investment) * 100; // Deal quality metrics const arv_to_contract_ratio = arv / contract_price; const repair_to_arv_ratio = (repair_costs / arv) * 100; return { contract_price, arv, repair_costs, assignment_fee, buyer_acquisition_cost, buyer_mao, wholesale_spread, assignment_fee_percentage, buyer_total_investment, buyer_equity_position, buyer_roi, deal_quality_metrics: { arv_to_contract_ratio, repair_to_arv_ratio, wholesale_margin: wholesale_spread, deal_grade: this.gradeDeal(wholesale_spread, buyer_roi, arv_to_contract_ratio) } }; } calculateProfitability(deal_metrics, wholesale_strategy) { const assignment_fee = deal_metrics.assignment_fee; const marketing_budget = wholesale_strategy.marketing_budget || assignment_fee * 0.1; const earnest_money = wholesale_strategy.earnest_money || 1000; // Estimate time to assign (days) const avg_days_to_assign = this.estimateDaysToAssign( wholesale_strategy.buyer_list_size || 50, deal_metrics.deal_quality_metrics.deal_grade ); const holding_costs = (wholesale_strategy.holding_costs_daily || 25) * avg_days_to_assign; const total_costs = marketing_budget + holding_costs; const net_profit = assignment_fee - total_costs; const profit_margin = (net_profit / assignment_fee) * 100; const roi_on_costs = total_costs > 0 ? (net_profit / total_costs) * 100 : null; // Annualized return const days_in_year = 365; const annualized_roi = roi_on_costs ? (roi_on_costs * days_in_year / avg_days_to_assign) : null; return { gross_profit: assignment_fee, total_costs, cost_breakdown: { marketing_budget, holding_costs, earnest_money_tied_up: earnest_money }, net_profit, profit_margin, estimated_days_to_assign: avg_days_to_assign, roi_on_costs, annualized_roi, profitability_rating: this.rateProfitability(net_profit, profit_margin, annualized_roi) }; } analyzeBuyerDeal(purchase_details, market_analysis, wholesale_strategy) { const buyer_acquisition = purchase_details.contract_price + wholesale_strategy.assignment_fee; const arv = market_analysis.arv; const repair_costs = market_analysis.repair_estimates || 0; const total_investment = buyer_acquisition + repair_costs; // Buyer's returns const gross_profit = arv - total_investment; const profit_margin = (gross_profit / arv) * 100; const roi = (gross_profit / total_investment) * 100; // 70% rule compliance const seventy_percent_rule = arv * 0.7 - repair_costs; const meets_70_rule = buyer_acquisition <= seventy_percent_rule; // Cash-on-cash return if financed const down_payment = total_investment * 0.25; // 25% down typical const annual_cash_flow = gross_profit * 0.1; // Estimate annual cash flow const cash_on_cash = (annual_cash_flow / down_payment) * 100; return { buyer_acquisition_cost: buyer_acquisition, total_investment, gross_profit, profit_margin, roi, financing_analysis: { down_payment_25_percent: down_payment, estimated_annual_cash_flow: annual_cash_flow, cash_on_cash_return: cash_on_cash }, seventy_percent_rule: { max_allowable_offer: seventy_percent_rule, actual_offer: buyer_acquisition, meets_rule: meets_70_rule, margin: seventy_percent_rule - buyer_acquisition }, buyer_deal_quality: this.rateBuyerDeal(profit_margin, roi, meets_70_rule) }; } assessRisks(property_details, purchase_details, market_analysis, deal_metrics) { const risks = []; let risk_score = 0; // Market risk if (market_analysis.market_trend === 'declining') { risks.push({ category: 'Market Risk', level: 'High', description: 'Declining market may affect ARV and buyer demand', impact: 'Reduced buyer interest, longer assignment time' }); risk_score += 3; } // Property condition risk if (property_details.condition === 'poor' || property_details.condition === 'distressed') { risks.push({ category: 'Property Risk', level: 'High', description: 'Poor condition may lead to higher repair costs than estimated', impact: 'Buyer may renegotiate or walk away' }); risk_score += 3; } // Deal margin risk if (deal_metrics.wholesale_spread < 10000) { risks.push({ category: 'Deal Risk', level: 'High', description: 'Low wholesale spread leaves little room for error', impact: 'Difficulty finding qualified buyers' }); risk_score += 3; } // Seller motivation risk if (purchase_details.seller_motivation === 'low') { risks.push({ category: 'Seller Risk', level: 'Medium', description: 'Low seller motivation may lead to deal falling through', impact: 'Seller may accept higher offer or change terms' }); risk_score += 2; } // Time risk const inspection_period = purchase_details.inspection_period_days || 10; if (inspection_period < 7) { risks.push({ category: 'Time Risk', level: 'Medium', description: 'Short inspection period limits marketing time', impact: 'Pressure to find buyer quickly' }); risk_score += 2; } // Repair estimate risk const repair_to_arv = deal_metrics.deal_quality_metrics.repair_to_arv_ratio; if (repair_to_arv > 25) { risks.push({ category: 'Repair Risk', level: 'High', description: 'High repair costs increase chance of estimate errors', impact: 'Buyer may get different repair estimates' }); risk_score += 3; } const overall_risk_level = risk_score >= 8 ? 'High' : risk_score >= 4 ? 'Medium' : 'Low'; return { identified_risks: risks, risk_score, overall_risk_level, risk_mitigation_strategies: this.getRiskMitigationStrategies(risks) }; } analyzeExitStrategies(purchase_details, market_analysis, deal_metrics) { const contract_price = purchase_details.contract_price; const arv = market_analysis.arv; const repair_costs = market_analysis.repair_estimates || 0; const strategies = []; // Strategy 1: Wholesale Assignment (primary) strategies.push({ strategy: 'Wholesale Assignment', description: 'Assign contract to end buyer for assignment fee', estimated_profit: deal_metrics.assignment_fee, time_to_close: '15-30 days', capital_required: purchase_details.earnest_money || 1000, risk_level: 'Medium', pros: ['Quick turnaround', 'Low capital requirement', 'No repair responsibility'], cons: ['Dependent on finding buyer', 'Limited profit potential'] }); // Strategy 2: Double Close const double_close_profit = deal_metrics.assignment_fee * 1.5; // Typically higher fee strategies.push({ strategy: 'Double Close', description: 'Close on property and immediately sell to end buyer', estimated_profit: double_close_profit, time_to_close: '30-45 days', capital_required: contract_price * 0.1, // 10% for transactional funding risk_level: 'High', pros: ['Higher profit potential', 'More control over transaction'], cons: ['Higher capital requirement', 'Closing cost burden', 'Title seasoning issues'] }); // Strategy 3: Fix and Flip (if margins support) if (deal_metrics.buyer_roi > 20) { const flip_profit = arv - contract_price - repair_costs - (arv * 0.1); // 10% for costs strategies.push({ strategy: 'Fix and Flip', description: 'Purchase, renovate, and retail the property', estimated_profit: flip_profit, time_to_close: '4-6 months', capital_required: contract_price + repair_costs, risk_level: 'High', pros: ['Highest profit potential', 'Full control of project'], cons: ['High capital requirement', 'Construction risk', 'Longer timeline'] }); } // Strategy 4: Lease Option (creative) const lease_option_monthly = (arv * 0.008); // 0.8% of ARV monthly rent strategies.push({ strategy: 'Lease Option', description: 'Lease with option to purchase, sublease to tenant-buyer', estimated_profit: lease_option_monthly * 12, // Annual profit time_to_close: '1-3 years', capital_required: contract_price * 0.05, // 5% down payment risk_level: 'Medium', pros: ['Lower capital requirement', 'Monthly cash flow', 'Multiple exit options'], cons: ['Longer commitment', 'Property management responsibility'] }); return { available_strategies: strategies, recommended_strategy: this.recommendBestStrategy(strategies, deal_metrics), strategy_comparison: this.compareStrategies(strategies) }; } analyzeMarketTiming(market_analysis, purchase_details) { const timing_factors = []; let timing_score = 5; // Neutral starting point (1-10 scale) // Market trend analysis if (market_analysis.market_trend === 'appreciating') { timing_factors.push({ factor: 'Market Appreciation', impact: 'Positive', description: 'Rising market supports higher buyer demand and ARV values' }); timing_score += 2; } else if (market_analysis.market_trend === 'declining') { timing_factors.push({ factor: 'Market Decline', impact: 'Negative', description: 'Declining market may reduce buyer demand and ARV reliability' }); timing_score -= 2; } // Seasonal factors const current_month = new Date().getMonth(); // 0-11 if (current_month >= 2 && current_month <= 6) { // March-July timing_factors.push({ factor: 'Spring/Summer Season', impact: 'Positive', description: 'Peak real estate season increases buyer activity' }); timing_score += 1; } else if (current_month >= 10 || current_month <= 1) { // Nov-Feb timing_factors.push({ factor: 'Winter Season', impact: 'Negative', description: 'Slower real estate season may reduce buyer pool' }); timing_score -= 1; } // Days on market indicator const dom = purchase_details.days_on_market || 0; if (dom > 90) { timing_factors.push({ factor: 'Long Market Time', impact: 'Negative', description: 'Property has been on market long time, may indicate pricing or condition issues' }); timing_score -= 1; } else if (dom < 30) { timing_factors.push({ factor: 'Fresh Listing', impact: 'Positive', description: 'Recently listed property may attract more buyer interest' }); timing_score += 1; } // Neighborhood grade impact const grade = market_analysis.neighborhood_grade; if (grade === 'A' || grade === 'B') { timing_factors.push({ factor: 'Quality Neighborhood', impact: 'Positive', description: 'A/B grade neighborhoods have consistent buyer demand' }); timing_score += 1; } else if (grade === 'D') { timing_factors.push({ factor: 'Lower Grade Area', impact: 'Negative', description: 'D grade areas may have limited buyer pool' }); timing_score -= 1; } const timing_rating = timing_score >= 8 ? 'Excellent' : timing_score >= 6 ? 'Good' : timing_score >= 4 ? 'Fair' : 'Poor'; return { timing_factors, timing_score, timing_rating, recommendations: this.getTimingRecommendations(timing_score, timing_factors) }; } // Helper methods gradeDeal(wholesale_spread, buyer_roi, arv_ratio) { let score = 0; if (wholesale_spread >= 20000) score += 3; else if (wholesale_spread >= 10000) score += 2; else if (wholesale_spread >= 5000) score += 1; if (buyer_roi >= 25) score += 3; else if (buyer_roi >= 20) score += 2; else if (buyer_roi >= 15) score += 1; if (arv_ratio >= 1.4) score += 2; else if (arv_ratio >= 1.3) score += 1; if (score >= 7) return 'A'; if (score >= 5) return 'B'; if (score >= 3) return 'C'; return 'D'; } estimateDaysToAssign(buyer_list_size, deal_grade) { let base_days = 30; // Adjust for buyer list size if (buyer_list_size >= 100) base_days -= 10; else if (buyer_list_size >= 50) base_days -= 5; else if (buyer_list_size < 25) base_days += 10; // Adjust for deal quality if (deal_grade === 'A') base_days -= 10; else if (deal_grade === 'B') base_days -= 5; else if (deal_grade === 'D') base_days += 15; return Math.max(7, Math.min(60, base_days)); // Cap between 7-60 days } rateProfitability(net_profit, profit_margin, annualized_roi) { if (net_profit >= 15000 && profit_margin >= 70 && annualized_roi >= 200) return 'Excellent'; if (net_profit >= 10000 && profit_margin >= 60 && annualized_roi >= 150) return 'Very Good'; if (net_profit >= 5000 && profit_margin >= 50 && annualized_roi >= 100) return 'Good'; if (net_profit >= 2500 && profit_margin >= 25 && annualized_roi >= 50) return 'Fair'; return 'Poor'; } rateBuyerDeal(profit_margin, roi, meets_70_rule) { let score = 0; if (profit_margin >= 20) score += 3; else if (profit_margin >= 15) score += 2; else if (profit_margin >= 10) score += 1; if (roi >= 25) score += 3; else if (roi >= 20) score += 2; else if (roi >= 15) score += 1; if (meets_70_rule) score += 2; if (score >= 7) return 'Excellent'; if (score >= 5) return 'Good'; if (score >= 3) return 'Fair'; return 'Poor'; } getRiskMitigationStrategies(risks) { const strategies = []; risks.forEach(risk => { switch (risk.category) { case 'Market Risk': strategies.push('Monitor market trends closely and adjust ARV estimates'); strategies.push('Build larger buyer list for faster assignment'); break; case 'Property Risk': strategies.push('Get multiple repair estimates from qualified contractors'); strategies.push('Include inspection contingency in contract'); break; case 'Deal Risk': strategies.push('Negotiate higher assignment fee or lower contract price'); strategies.push('Have backup exit strategies ready'); break; case 'Seller Risk': strategies.push('Maintain regular communication with seller'); strategies.push('Understand seller timeline and motivations'); break; case 'Time Risk': strategies.push('Pre-market the deal before closing'); strategies.push('Have buyers pre-qualified and ready'); break; case 'Repair Risk': strategies.push('Get detailed scope of work from contractors'); strategies.push('Include repair cost buffer in buyer analysis'); break; } }); return [...new Set(strategies)]; // Remove duplicates } recommendBestStrategy(strategies, deal_metrics) { // Score each strategy const scored_strategies = strategies.map(strategy => { let score = 0; // Higher profit is better if (strategy.estimated_profit >= 15000) score += 3; else if (strategy.estimated_profit >= 10000) score += 2; else if (strategy.estimated_profit >= 5000) score += 1; // Lower risk is better if (strategy.risk_level === 'Medium') score += 2; else if (strategy.risk_level === 'Low') score += 3; // Faster timeline is better if (strategy.time_to_close.includes('15-30')) score += 3; else if (strategy.time_to_close.includes('30-45')) score += 2; else if (strategy.time_to_close.includes('4-6 months')) score += 1; // Lower capital requirement is better if (strategy.capital_required <= 5000) score += 3; else if (strategy.capital_required <= 25000) score += 2; else if (strategy.capital_required <= 100000) score += 1; return { ...strategy, score }; }); const best_strategy = scored_strategies.reduce((best, current) => current.score > best.score ? current : best ); return { recommended: best_strategy.strategy, reasoning: `Best balance of profit (${best_strategy.estimated_profit}), risk (${best_strategy.risk_level}), and timeline (${best_strategy.time_to_close})` }; } compareStrategies(strategies) { return { highest_profit: strategies.reduce((max, current) => current.estimated_profit > max.estimated_profit ? current : max ), lowest_risk: strategies.filter(s => s.risk_level === 'Low')[0] || strategies.filter(s => s.risk_level === 'Medium')[0], fastest_close: strategies.reduce((fastest, current) => { const currentDays = this.parseTimeToDays(current.time_to_close); const fastestDays = this.parseTimeToDays(fastest.time_to_close); return currentDays < fastestDays ? current : fastest; }) }; } parseTimeToDays(timeString) { if (timeString.includes('15-30')) return 22; if (timeString.includes('30-45')) return 37; if (timeString.includes('4-6 months')) return 150; if (timeString.includes('1-3 years')) return 730; return 30; // default } getTimingRecommendations(timing_score, timing_factors) { const recommendations = []; if (timing_score >= 8) { recommendations.push('Excellent timing - proceed with confidence'); recommendations.push('Market conditions favor quick assignment'); } else if (timing_score >= 6) { recommendations.push('Good timing - normal marketing approach'); recommendations.push('Monitor market conditions for any changes'); } else if (timing_score >= 4) { recommendations.push('Fair timing - be prepared for longer marketing period'); recommendations.push('Consider adjusting assignment fee for quicker sale'); } else { recommendations.push('Poor timing - consider waiting or alternative strategies'); recommendations.push('Focus on highest quality buyers only'); } // Specific recommendations based on factors const negative_factors = timing_factors.filter(f => f.impact === 'Negative'); if (negative_factors.length > 0) { recommendations.push('Address timing challenges with enhanced marketing'); recommendations.push('Build larger buffer into deal timeline'); } return recommendations; } generateRecommendations(deal_metrics, profitability, risk_analysis, market_analysis) { const recommendations = []; // Deal quality recommendations if (deal_metrics.deal_quality_metrics.deal_grade === 'A' || deal_metrics.deal_quality_metrics.deal_grade === 'B') { recommendations.push({ category: 'Deal Quality', priority: 'High', recommendation: `Excellent ${deal_metrics.deal_quality_metrics.deal_grade}-grade deal - proceed with confidence`, action: 'Move quickly to secure contract and begin buyer marketing' }); } else if (deal_metrics.deal_quality_metrics.deal_grade === 'D') { recommendations.push({ category: 'Deal Quality', priority: 'High', recommendation: 'D-grade deal has significant challenges', action: 'Renegotiate contract price or consider passing on deal' }); } // Profitability recommendations if (profitability.net_profit < 5000) { recommendations.push({ category: 'Profitability', priority: 'High', recommendation: 'Low net profit may not justify time and risk', action: 'Negotiate higher assignment fee or lower contract price' }); } // Risk recommendations if (risk_analysis && risk_analysis.overall_risk_level === 'High') { recommendations.push({ category: 'Risk Management', priority: 'High', recommendation: 'High risk level requires enhanced due diligence', action: 'Implement all risk mitigation strategies before proceeding' }); } // Market recommendations if (market_analysis.market_trend === 'declining') { recommendations.push({ category: 'Market Conditions', priority: 'Medium', recommendation: 'Declining market requires conservative approach', action: 'Reduce ARV estimates by 5-10% and move quickly to assign' }); } // Buyer analysis recommendations if (deal_metrics.buyer_roi < 15) { recommendations.push({ category: 'Buyer Appeal', priority: 'High', recommendation: 'Low buyer ROI will limit interested parties', action: 'Reduce assignment fee or find alternative exit strategy' }); } return recommendations; } }