How to find and analyze deals

Question

Laura Richards · Answer

I have no idea why I mentioned it but didn't give you the website. So sorry.

It's www.kuzza.com

Laura Richards · Answer

There is a tech start up in Orlando offering an MLS to everyone for Free, 100%. It's the real MLS, not some low grade subscription brokerages put on their sites,. They are expanding to the rest of Florida in 2016. I think Tampa is first.

You should go create an account so that you get an update when its in Jacksonville.

Michelle Elsaid · Answer

Hi @Scott Dorsett!

I would reccommend getting access to the MLS through a realtor. My realtor set me up with a great website where I can create all my own searches and get tons of details on the house including taxes, HOA, etc.

Another route, is just to practice by using information you find on sites like zillow or trulia.

For a very basic analysis you will want to look into two rules: 2% Rule (1% in some areas) and the. 50% rule. These are quick numbers that can tell you if you want to analyze further and you can find topics on these on the site.

I watched a webinar on analyzing deals that really helped me get started in creating an excel worksheet to use.  I can send it to you if you would like.

For a buy and Hold here is a quick summary- make sure you average all these costs to be on a monthly basis (sometimes taxes and HOA are annual or semiannual)

Monthly rent expected MINUS

Mortgage Payment

HOA (Look in the country appraiser's records or it can be found on most RE sites)

Taxes

(Look in the country appraiser's records or it can be found on most RE sites

Insurance

PMI (if applicable)

Vacany rate (10% - depends on your expectations)

Capex (20% - Big expenses related to maintenance and improvements - depends on current condition)

This will give you your cash flow in dollars each month.

*You also want to look at your ROI and COROI. You can find more details on how to calculate those on the BP site.

*You will want to analyze the purchase price of "market comps" or market comparables, by looking at the sale prices of similar houses in the area.

Hope this helps!

Patrick Noel · Answer

Simple Quick Formula

ARV

-General of Misc Holding Costs (Holding, Loan, Carrying and Sales Costs = about 10% of ARV)

-Desired Profit (XXX % of ARV)

-Rehab

_______________

Purchase Price for Offer

Dave Meyer · Answer

If you upgrade your BP account there is a quick and easy tool to analyze different types of investments.

Account Closed · Answer

Welcome! If I were you I would start here

http://www.amazon.com/Book-Flipping-Houses-Residential-BiggerPockets/dp/0988973707/ref=sr_1_1?ie=UTF8&qid=1450742104&sr=8-1&keywords=j+scott+the+book+on+flipping+houses

Melissa Gittens · Answer

@Scott Dorsett There are many places to find a great deal to analyze I would start by connecting with other investors at your local REI as well as trying Craigslist and finding a real estate agent who has experience working with investors or is an investor. This will help your chances at finding a great deal to take advantage of

Laura Richards · Answer

a few people have messaged me about the start up. BP may tag my response for mentioning it directly on here, but I'll give it a shot anyway. It's www.Kuzza.com.

Michael Lee · Answer

Hello and welcome!  I am 59 years old and I found BP about 4 months ago ad I am still learning.  I graduated from college and got a business degree that emphasized real estate.  I got a degree and a broker license in 1980.  Regardless of that degree I felt more comfortable in construction.  I have been in the construction business since I was 17.  If you think I might  be any help to you please contact me at any time.  Good luck!

George Carnicle · Answer

Welcome to real estate investing in Jacksonville, @Scott Dorsett !

I want to echo what Lennie said: "Listen to the Podcast". In my opinion, it's the most efficient use of your time while commuting and one of the best investments in yourself you can possibly make. I'm a fan of the listen to it through from the beginning method, Brandon and Josh will grow on you.

@Michelle Elsaid has a great list of tips for buy and hold! Much of that is great for flipping too. I would add to it that you should find your niche area and property type. That will help you determine how great a deal really is and pull the trigger much quicker as a result. I believe it is important to know the neighborhood a property is in. Not all of Jacksonville is very flip friendly.What is your full-time job? I highly recommend you try to leverage those job skills in your real estate investing.

@Laura Richards Could you give a little more detail on this tech startup? Do they have a website?

How to find and analyze deals

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