WHAT IS A DEAL TO YOU?

[Rich Cee]

What is a deal to you and why? I'm sure not every one is strictly focused on the 70% ARV-repairs, 50% (multifamily), or 2% for B&H. The BP boys also mention that these are only guidelines, but what do you all focus on to consider a purchase is a deal.

I ask this because I do not want to start going around calculating said math above, make a million offers and never get anywhere although I would celebrate if an offer where to be accepted. I am curious on how to obtain an "eye" for deals so if you all may add that in to the reponses I would greatly appreciate that. Thank you and have a great day BP!

[Joe Villeneuve]

Numbers and exit strategy...or strategies actually.

First you need to decide what your exit strategies are.  Are you a flipper, holder or both.  What specific strategies are you interested in, or more importantly are you and your team equipped to handle?  Once this is decided, you need to design a system with criteria for analyzing properties to see if they meet your criteria for your strategies.  The criteria is always based on your numbers for your market.  If one person tells you you should use this method of analysis (2%, 70%, etc...) they are correct...for their market and their strategies.  One person's floor is another person's ceiling.  What's right for them isn't necessarily right for you.

NEVER offer based on what it will take to get the property.  This isn't a contest to see how many properties you can acquire.  It's a contest to see how much $$$$$ you can acquire.  

Your analysis will tell you what to offer. ALWAYS offer based only on what your numbers tell you (based on your criteria).  The numbers don't lie, so don't argue...you'll lose every time.  Sometimes the best deal you make is the one you don't make.

Joe Villeneuve
REcapSystem
A2REIC