How to Analyze a Good Deal

How to Analyze a Good Deal

Does anyone have a list of things to check for when analyzing their properties. I went back to the book and found the list of things to look out for such as curb appeal, cost of fixing, traffic, etc. and I looked on this website but I didn't find anything. I'm looking for a due diligence checklist to go through for each property I analyze to make sure I'm getting a good deal. Like something that suggests to compare monthly mort. payment to its potential cashflow, is it at or below FMV which would suggest a good deal and any other common things you should pay attention to when researching a property.

Thanks for any assistance



Just my .02 but first I

Just my .02 but first I think you need to narrow down how you are going to make your money?

Are you looking for an assignment? Then you need to buy below ARV.

Are you looking for instant equity? Then you need to buy below ARV and be able to handle the repairs.

Are you looking for cash flow? Then either price or terms might work for you.

It's hard to go cookie cutter but I would say that in today's climate I am either looking for 40% off FMV with minimal repairs or I am looking for some VERY attractive owner financing.

All great tips

Thanks for the benchmarks! I'll load that into my arsenal of research tactics. Your .02 just made me a better investor.

Smiles to YOU!

Good explaination Mark!

Mark indicated above everthing depends on what you want to do with the property. In my case, i look for properties to fix and flip and some are rental properties. I'm working on a deal right now where i made an offer 50% of the value of the house. I've had my realtor do the comps for me and make comparisons of ARV- (after repair value) for a 4 dr, 2 ba, 2,000 sq ft, 2 car garage, brick home. The FMV is around $140,000-$150,000. They are asking for 110K and I made an offer for $70,000 with about $10,000-$15,000 repair costs. I don't know if they would accept it or not, but i set the limit of how much i want to spend on the house. I may go up another 5k or 10k, but that's the most i would go. The fact of the matter is, you want to do your calculations before you make any offer and see how much profit you could accumilate, but then again, that depends on what you want to do with the property as Mark stated above. Gook luck Heide and don't you ever give up.


Lloyd is spot on in how he

Lloyd is spot on in how he is working!! Congratulaions on the offer. I hope it comes through for you.

BTW.. What Lloyd offered IS a deal. No doubt about it. And if it doesn't go through.. there is another offer just like it around the corner.

Exactly right Mark!

You just keep looking for the deal that best fits you. I have limits of how much i want to spend and i follow that to the max. Good job Mark!