Formulas don't work, every deal is different

[Luke Weber]

When I am dealing with wholesalers or Realtors they almost always ask for my formula.  I tell them, there is no formula, if you think it is a deal, send it to me and I'll run MY numbers on it and let you know.

If it needs a lot of work, it will take longer.

If it is turn key it will move quicker.

Lower price, I'm probabaly all cash, higher price I am probably getting a loan or private investor.

Tenant or Vacant?

So many factors that need to be considered on each deal.

If you are using a "formula" you are either missing out on potential deals OR you are buying something you shouldn't.  Run your numbers fresh on EVERY deal you see.  Get as many deals coming to your inbox as you can.

[Jonathan Greene]

I couldn't agree more as well. When new investors "interview" me, they toss around formulas and terms that don't matter to me. I've been investing for 30 years, a formula doesn't tell me anything. And will the advent of all the calculators, it's actually what keeps people in analysis paralysis because they run numbers and don't see properties because the numbers don't work. Then, they can make the numbers work by just adjusting numbers when the property is what holds all the cards. I think the best advice for new investors is to look at as many properties as possible in person and then use calculators to see how your real-life investigation is going.

People who want to promote formulas for flipping are trying to sell a system. Real investors know the system is a broken mess of investor feel, experience, knowledge, back data, neighborhood identification, and a bit of numbers.