Resources To Help You Analyze An Investment Real Estate Deal In Connecticut
As a service to our VIP and Preferred Investment Property Buyers… we’ve created a few educational resources. If you’re newer to buying investment properties you’ll get a lot from this page. If you’re experienced… there may be a tool or two below that’ll help make things easier for you.
Importance Of Evaluating Deals Correctly
As a real estate investor, you can make or break your investment when you buy. Pay too much for a property and you could lose your shorts. Get a great deal on a property… and it makes all the difference in the world. Here at Clifford Group we feel it’s our duty to help you get the best deals you possibly can… and a big part of that is knowing your numbers. It’s in our best interest as well to help you become the best investor you can… so you keep coming back to us to buy great discounted properties.
Deal Evaluation Resources
- Simple Deal Evaluation Spreadsheet – Use this Excel spreadsheet to calculate your target offer price, profit, and more. (requires Microsoft Excel to work)
- Property Repair Checklist – Helps you keep track of repair costs so you can build them into your offer
We Use these systems to Anaylaze a Real Estate DEAL and you can use them too…
How To Analyze A Real Estate Deal..
We collect all the information from the seller including pictures of the property, any remodeling they have done, how long they have owned the property and most importantly their motivation for selling. I always like to tell a seller we are basically like a pawn shop and we are buying your property for cash, closing quickly so we look to get a bargain. Honesty is key to gaining trust and building a good relationship.
Once a seller knows who we are and what we are about a quick market analyzes of the property using MLS is done. Your realtor can do this for you. Here’s the key strategy when having your realtor run the comps. First search for properties that are active, pending and sold in the last 6 months. If you get nothing else from this article remember this. It’s not a deal if you don’t have at least 3 solid SOLD comps in the last 6 months.
If they agree we then move forward with a Soft Offer over the phone. All without visiting the property.
We then visit the property to evaluate the deal and estimate repair costs. We use several formulas for making an all cash offer here are some of them.
This is assuming the property has a 100,000 (ARV) After Repair Value.
- Wholesale Offer: Retail price x.5 (-$5000 Your Profit) = Purchase Price
- Rehab Offer: Retail price -Repairs (-$30,000 Your Profit) = Purchase Price
Step 4: The Exit Strategy
This will be the price you will use to sell your investment property. Some of you may ask well why wouldn’t you flip a property if there’s more money to be made. We Wholesale properties to pay the bills and we flip properties to make huge profits. Here are the formulas.
- Whole sale: Retail price x.5 = sales price
- Rehabbed price: Retail price is the sale price.
Remember we have 3 solid comps to backup these numbers so are exit strategy is rock solid. To get access to some of our deals come join our Real Estate investing team. We never buy properties we would not Flip ourselves so all of our properties have substantial equity and we have already vetted the deals.