question about property searching economics

[Tyler Helton]

this is refrencing "The Millionaire Real Estate Investor" book's criteria worksheet. I need to find the price range I want, discount percent, cash flow, and appreciation. what is the discount percent? is this talking about the discounted cash flow analysis?

[Christopher Phillips]

Tyler Helton

Cody L. Is correct.

Discount % is just how much you're saving against market value.

Could be 0% could be 1% or 20%

It a matter of how much $ you get off the market value.

A fully rehabbed property listed on the MLS will probably have no discount or might even price above market in a hot area.

A property found off the MLS with lots of condition issues will have a deep discount.

How much of a discount depends on the situation and your negotiation skills.

How you're paying for the property can also impact the discount.

If you're coming with cash and waving contingencies you can also get a discount. Coming in with complicated financing and contingencies don't expect a discount.