Advice Needed: Identifying "Good Deals" in Real Estate Investing

[Erick Pena]

Hi everyone,

I’m new to real estate investing and just finished reading Brandon’s book on investing with no money down. I’ve found myself particularly interested in multifamily properties, but I’m struggling to grasp what exactly defines a “good deal.”

When evaluating listings, should I primarily focus on properties that seem undervalued? Are there specific market indicators or property traits I should be paying attention to? I feel like I’m missing the bigger picture of what makes a property a great investment opportunity.

If anyone could share some pointers or insights on how to identify a “good deal,” I’d really appreciate it!

Thanks in advance for your help!

[Tim Delaney]

At the most basic level a good deal makes you money with minimal cash and effort. Sometimes you have to bring a little more cash, others a little more effort. Ideally not too much of both.

The best way to learn what makes a good deal is to just keep analyzing. Find properties, and plug the numbers in the BP calculators. It may be helpful to analyze each deal as a flip and a BRRRR so you understand why sometimes it works as one but not the other.

There will be some people that say it’s not all about the numbers though, and I would agree. But the numbers is where it starts. Once you start learning how to identify a good deal financially you also need to make sure the property is not in a really crappy depreciating area or that the building is completely falling apart structurally.

Hope this helps.