Detailed Analysis: When to Perform?

[Dominick Tanella]

Hello all, regarding deal analysis I have a question regarding the process; more specifically, when to perform a detailed analysis (before or after an offer has been made?). I assumed it would be BEFORE, however, I am currently reading Brandon Turners "The Book on Rental Property Investing" and it seems that doing the full detailed analysis based on inspecting documents provided by the seller is completed in the due diligence phase of the deal AFTER the offer has been made. So basically, an offer is made based on estimated comparable data you find on your market beforehand and what's provided by the agent then the specifics are determined after the offer has been made? Any insight would be appreciated.

[John Leavelle]

Howdy @Dominick Tanella

Your assumption is correct.  I actually use a 3 step analysis process.  5 minute analysis based on listing.  Looking to see if property meets 1% and 50% rules, and if there is significant repairs needed.  If it passes this quick look, then, I dig a little deeper.  I work up a Proforma analysis based on previous research and what I can get from the listing agent.  If it’s still a go, and the offer accepted, I’ll do a detailed analysis during the due diligence period.