What Makes A Good Deal?

[John Thedford]

I get calls regularly from different BP members asking for my thoughts. Today, a member sent me an address wanting to know my thoughts on the property. My response was: can it be purchased for 20% under market. Of all the rules/suggestions/guidelines to me this is probably the most important. You make your money when you buy. That is the Gary Keller mantra. I see two reasons for this: a guaranteed instant profit plus the ability to realize that tax free when selling. Another reason is market fluctuations. If you buy under market and it drops 10% you may not be underwater. So whether you want to flip or buy and hold, I believe getting a deal on the purchase is most important. The NY as well as west coast markets scare me. Investors there are often forced to pay ridiculously high prices and HOPE for appreciation. So, what are your thoughts? What makes a good deal?