Mentor 1- Deal Size

[Henry Clark]

I'm not your mentor. Don't ask about specific deals. No financial advice is being given. All REI is local.

Deal size.  This is t necessarily the first discussion item but it definitely is at the top.

Your deal size will help narrow down your search and learning process.  More importantly your Cost of failure.   Most of you won’t invest because of imagined failure versus potential success.

We are primarily commercial. The approach will still apply to SFH and MFH.

A.   How much money or collateral at 65% of value do you have?   Say $20,000

B.   What is your finance mechanism?  0% down?  5%, 10% SBA, 25% conventional? 40% Conventional?  Say 25%
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C.  Deal size=. $20,000 at 25% down= $80,000 deal.  I don’t plan to answer every question around a specific topic.   Example.  Yes you should have some cushion.      
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So as you start to learn and invest you want to look for that size of investment or less.     

Start small and Make Your Big Mistakes Early.