How many deals do you analyze to get one that fits? 50? 72? 100?
Houston, TX · Member since 2017 · 25 posts · 3 votes
Good morning BP family!
Life is tough, especially when you don't have perspective. As I'm picking up golden nuggets from forums and podcasts, I've started to notice that people approach finding deals more like sales men, that is, having the "numbers game" mindset.
How many deals do you slober knocking- go-getters run through before you find one that fits?
Thanks y'all!
Good morning BP family!
Life is tough, especially when you don't have perspective. As I'm picking up golden nuggets from forums and podcasts, I've started to notice that people approach finding deals more like sales men, that is, having the "numbers game" mindset.
How many deals do you slober knocking- go-getters run through before you find one that fits?
Thanks y'all!
I “analyze” 2-3 properties tops per deal I close. I have a lot sent via blast (10 a day). I scan those for about 5-10 seconds each so I wouldn’t count that as analyzing
Then I get 1-2 deals a day sent by brokers I know. I’ll give those 5 min. Or what I’d consider “light analyzing”. But it doesn’t take more than a quick mini dive to give a yes/no (how much per door how much per unit of rent. Normalize that across a few factors. Measure that against like comps)
Any deal I glance at and seems like a fit there is a good chance I'll make a go at it at a more detailed look. And if a deal makes it to that point where I give it a "full look", there is a 50+% chance I'll send an LOI (and of those I get about 25%?).
It’s gotten to the point where I’ll bid and even close on properties with no more than 5 min looking at some fugues. No calculator. No tour. No pouring though DD documents. Not very smart of me to be honest but whatever. Properties are at a amorphous blob at this point
I close on a $5m deal next Wednesday and I spent about 5 min looking at the rent roll. Never event saw it in person. Though my ops manager drove by and said it’s a dump. I said “perfect”.
I think it depends on where the deals are coming from that you are looking at. For example, are you getting e-mails from wholesellers in your area or looking only at properties on the MLS? Are you marketing for your own deals? When I first started evaluating deals I had my spreadsheet all set up and the problem was that I could create a "perfect" deal on my spreadsheet but finding it in reality was another story. You can spend a lot of time doing work that's just "virtual" (ie online listings, e-mail deals, plugging in numbers in spreadsheets, etc) but unless you are getting out and seeing (and smelling!) the property you don't get a good feel for what $X will buy in your market. While it may be true that on average you have to look at X # of properties, etc what if the "best" one is the 12th one you look at? You won't know if it's a good deal unless you are out looking all the time. Just my opinion ... may not translate as well in your market!
I think it depends on where the deals are coming from that you are looking at. For example, are you getting e-mails from wholesellers in your area or looking only at properties on the MLS? Are you marketing for your own deals? When I first started evaluating deals I had my spreadsheet all set up and the problem was that I could create a "perfect" deal on my spreadsheet but finding it in reality was another story. You can spend a lot of time doing work that's just "virtual" (ie online listings, e-mail deals, plugging in numbers in spreadsheets, etc) but unless you are getting out and seeing (and smelling!) the property you don't get a good feel for what $X will buy in your market. While it may be true that on average you have to look at X # of properties, etc what if the "best" one is the 12th one you look at? You won't know if it's a good deal unless you are out looking all the time. Just my opinion ... may not translate as well in your market!
I've been looking on everything from email to MlS. If it comes down to actually seeing the deals (and smelling them :) ] than I'll just start driving to all the potential deal makers and get a good sense. What do you think about this as a system: create a general criteria for the deals I'm looking for, analyze, document deals that are even remotely close to my criteria, and just start scheduling to get into at least 15 of the homes per week. At that rate I'll be physically in and around a minimum of 60 deals per month..... thats 180 potential deals per quarter! OMG... thats 720 deals per YEAR!.... am I missing something or is this a great a idea?? Houston's market is insanely large, not to mention the few great markets within 80 miles of Houston City limits.. there shouldn't be a reason I can't hit these numbers. Sorry, got a little carried away, but what do you think? could this be an amazing system to implement for a newbie like me?
Good morning BP family!
Life is tough, especially when you don't have perspective. As I'm picking up golden nuggets from forums and podcasts, I've started to notice that people approach finding deals more like sales men, that is, having the "numbers game" mindset.
How many deals do you slober knocking- go-getters run through before you find one that fits?
Thanks y'all!
I “analyze” 2-3 properties tops per deal I close. I have a lot sent via blast (10 a day). I scan those for about 5-10 seconds each so I wouldn’t count that as analyzing
Then I get 1-2 deals a day sent by brokers I know. I’ll give those 5 min. Or what I’d consider “light analyzing”. But it doesn’t take more than a quick mini dive to give a yes/no (how much per door how much per unit of rent. Normalize that across a few factors. Measure that against like comps)
Any deal I glance at and seems like a fit there is a good chance I'll make a go at it at a more detailed look. And if a deal makes it to that point where I give it a "full look", there is a 50+% chance I'll send an LOI (and of those I get about 25%?).
It’s gotten to the point where I’ll bid and even close on properties with no more than 5 min looking at some fugues. No calculator. No tour. No pouring though DD documents. Not very smart of me to be honest but whatever. Properties are at a amorphous blob at this point
I close on a $5m deal next Wednesday and I spent about 5 min looking at the rent roll. Never event saw it in person. Though my ops manager drove by and said it’s a dump. I said “perfect”.
When I say analyze I mean focusing in on the properties that seem to match my criteria. Deals that look right.
Then running the numbers, and even driving to the properties.
Good morning BP family!
Life is tough, especially when you don't have perspective. As I'm picking up golden nuggets from forums and podcasts, I've started to notice that people approach finding deals more like sales men, that is, having the "numbers game" mindset.
How many deals do you slober knocking- go-getters run through before you find one that fits?
Thanks y'all!
I “analyze” 2-3 properties tops per deal I close. I have a lot sent via blast (10 a day). I scan those for about 5-10 seconds each so I wouldn’t count that as analyzing
Then I get 1-2 deals a day sent by brokers I know. I’ll give those 5 min. Or what I’d consider “light analyzing”. But it doesn’t take more than a quick mini dive to give a yes/no (how much per door how much per unit of rent. Normalize that across a few factors. Measure that against like comps)
Any deal I glance at and seems like a fit there is a good chance I'll make a go at it at a more detailed look. And if a deal makes it to that point where I give it a "full look", there is a 50+% chance I'll send an LOI (and of those I get about 25%?).
It’s gotten to the point where I’ll bid and even close on properties with no more than 5 min looking at some fugues. No calculator. No tour. No pouring though DD documents. Not very smart of me to be honest but whatever. Properties are at a amorphous blob at this point
I close on a $5m deal next Wednesday and I spent about 5 min looking at the rent roll. Never event saw it in person. Though my ops manager drove by and said it’s a dump. I said “perfect”.
I like your style, surely it wouldn't be as effective when it comes to SFH's...right?
I mean, there's more constants with SFH, where as in multi's its kinda, well like you said- amorphous blob LOL
plus, as far as commercial goes, is there even a distinct niche within that property type? (I'm assuming your doing 50+ unit apartments)
and if not, then that seems to explain why you can be more free spirited with deal analysis.
OR, maybe your leads are more tailored to your liking than most.. leaving less room for outliers..
which seems like a valuable method, just be clear with your brokers and bird dogs, and you've got less time to waste on getting nitty gritty..
I'm not too experienced, but I've heard it's about 100 deals. Look at 100, offer on 5-10, and buy one. Depends on your criteria, of course. If you want to find a deal where you'll make 50% CoC yearly, it's harder. If you loosen up your criteria & standards, it gets easier.
You have to have Money To Blow, though :).
BAHAHA! BRUH..
lol. Great point. LESS Criteria=More MONEY$$
Deal 1: it took 1.
Deal 2: It took about 10
Deal 3: It took about 50
My point is, nobody knows. Be ready to analyze a thousand, and be ready to buy every time. And, the more you analyze, the quicker and better you get. So, get started.
I love it! Thanks man, thats a personality match for me.