Resources To Help You Analyze An Investment Real Estate Deal
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 North Atlanta House Buyers 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.
What is the property worth? This seems basic right? But if you know how to run your numbers you can evaluate your property based on what the home is worth at market value. For example, you purchase a $100,000 fixer upper that should sell for $150,000 when complete. If that property needs $60,000 in repairs, then you’ve obviously bought yourself a horrible deal that will virtually guarantee you’ll never buy another.
But if the property only needs $30,000 in renovation, then the simple math says it’s a good deal right? Well it depends…are you going to rent it, flip it, give it to you kids to live in? What is the exit strategy?
What is the exit strategy? It’s always good to have multiple ways out of a burning building right? Well it’s the same with real estate investing. You want multiple exits. When we purchase properties, we’re looking for at least 2 exit strategies, preferably 4. What are those exists you may wonder?
- Buy and hold – keep it as a rental property and cash flowing exit
- Fix up and sell – commonly called a fix and flip or just “flip”, this is what you see on HGTV.
- Partnership with another investor – each partner brings unique gifts to the table for a win/win partnership
- What other purpose? – What is the highest and best use of this property at the price paid, location, etc. Could it go commercial in the future? Is it in a growth or increasing value zone?
Real estate investment is fun but complex. Here are a few resources to help you. And if you have any questions, feel free to reach out to us at (770)629-8986.
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