Bigger Pockets Calculator

[Moshe Katzir]

I heard a webinar the other day in which Brandon mentioned and demonstrated the calculators of the Bigger Pockets website.

I was really impressed but something bothered me.

Is there any relevance to the area/zip code/neighborhood i choose to invest in or is it just a matter of numbers? because the calculators doesn't bring it in consideration.

thanks.

[Immanuel Sibero]

@Moshe Katzir

I think you're on the right track with your question. Investment in general (i.e. including real estate) is ALWAYS a balancing act between return vs risk. Investment returns are usually quantifiable in numbers like dollars, percentages, etc. while investment risks are NOT quantifiable but are just as important a consideration. Calculators such as BP calculator, Excel, etc. can crunch numbers all day long hence are very good at calculating returns but they fall short in calculating risks because risks are not expressed in numbers.

If you listened to a podcast and got the impression that anything with 12%+ CoC and $100+ monthly CF is a good investment and that nothing else matters, then the expert had done you a disservice by ignoring the other side of the investment coin.

Cheers... Immanuel