How to Evaluate a Real Estate Investment Deal

So you have a possible real estate investment deal and need to evaluate its potential. As a real estate investor, you must carefully assess the situation and numbers before you can determine its viability or you’ll stand to lose a lot of money. Follow these steps to evaluate a real estate investment and decide if it’s a worthwhile deal.



Instructions

1.

Examine the source and ask yourself probing questions. How are you getting this lead and potential deal? What is the seller’s situation and motivation? Are you dealing with the seller directly or with an agent or another investor? Exercise caution when dealing with all parties, especially sellers and other investors. If another real estate investor approaches you for a deal, make sure you check that investor out very carefully. Find out as much as you can about her from other sources to verify her trustworthiness.

2

Make some initial "back of the envelope" calculations of its profitability. Estimate the deal’s worth by calculating the Total Income – Total Expenses = Total Profit. Make reasonable estimates for repair, taxes, closing, selling costs, and rental income or sales price. You can find real estate comparisons online or get the information from your real estate broker.

3

Confirm the current market values by researching the sold prices of houses that are within a half-mile of the property and that were sold in the last six months. Be sure to compare similar properties only. For example, they should be about the same size, age, number of bedrooms and condition. If not, then adjust the market value based on the square footage or other features.

4

Examine the property and perform due diligence. Carefully check out the physical and financial condition of the property. Ask the seller, investor or agent for documentation to confirm the property’s expenses and legal status. When you receive information, review it carefully and confirm the numbers are correct. Be sure to follow up on any missing information. Do not trust any verbal agreements--get everything in writing.



As you may know the real estate market is finally starting to heat up.

There is one area that is already getting all the attention of investors.

Beacuse that's where the buyer's are plentiful.

John Alexander has just announced his new "Inverse Option Flip" strategy for this new market.



Check it out, then let me know what you think at:

https://m279.infusionsoft.com/go/iof/sgroup



Roosevelt