How could I bring value as a deal analyst?

Question

Hi, a question for you experienced investors, I am focusing my efforts to become a deal analyst. What I need to know is:

(1) Would you consider someone to analyze deals for you?

(2) What would you need in order for it to be worth it for you? What would need to be included in the deliverable?

(3) How would you consider paying them?

I am surrounded by those in the real estate industry and investment market. I want to capitalize on my analytical strengths as I learn to invest myself. So if you have other recommendations on how to present to an investor this service, what would you do.

Thanks!

Adam Gollatz · Answer

To be honest, the hardest part is not really analyzing the deal, its finding it. Thats what people are paying for.

Not entirely sure what you are looking to do. Were you going to go out and find the deals, either direct marketing or combing the mls or were you expecting someone to send you an address and say analyze this? The former is wholesaling, the latter is VA work which is thousands of dollars per lead vs an hourly pay thats usually contracted out.

To answer your questions:

1 - yes

2 - Comp analysis sheet and a scope of work

3 - commission- flat fee per deal under contract

Michael Goldsmith · Answer

To possibly add some clarity, I think @Jeremy Whiting is in the same boat that many new REI's are in, myself included.  We want to jump in but simply don't have the money to do it.  Thus, wholesaling becomes an option, as it can get someone in the door to start to build a track record with relatively low risk.  It's also learning and practice for a new investor in finding deals and determining whether or not they're worth investing in.  The numbers may LOOK good on paper, but if no investor wants to touch the property... then maybe it's not so good, and then it's a learning experience to figure out why, and what to avoid next time.  Plus, getting an experienced investor to look over their work and say "yes, this is a good deal" is a learning experience as well- an inadvertent mentor, for lack of a better term.  So I totally get where he's coming from.

Jeremy Whiting · Answer

@Adam Gollatz Thanks, yes essentially my first thought would be to just be handed an address. I think in this situation it looks like that would be a position at a company. I have definitley considered the individual investors preferences. I think practically, it would be better that I would focus on wholesaling, though I understand it would be very difficult to find the deals. Thank you for your perspective!Currently I would have every piece that I need in order to wholesale, I have (1) a solid contractor, (2) a realtor to run comps, (3) and a way to analyze the deals. I believe I could make a compelling case to sell a house. In this case I would need to find someone who excels at finding the deals, or working with a wholesale to help process/build cases for houses they have contracts on? Thanks!@Stephen Akindona That makes sense that most investors would want to do their own analysis. I am realizing more now the need to partner with others. At this point I am not skilled enough to teach, but that is a solid idea. Thanks!

Stephen Akindona · Answer

I think most experienced investors would analyze their own deals. Only because every investor has their own objectives and metrics they use! If you have a strong skill set of analyzing deals then partner with someone who's skill set is finding deals or raising money! Also I think you might find that educating new investors on how to analyze deals might be a better way to monetize your skills. I can think back to when I was getting started and I definitely would have been interested in paying someone to teach me how to analyze deals, especially market specific factors!

Jeremy Whiting · Answer

@Tom S. Thanks for the reply. When you mention having a "resume with a lot of completed deals" what do you mean? How would that be communicated?My thought process on all of this is coming form listening to the podcast and hearing that they would have a team of individuals that would look into the deal, someone to analyze it, and check rental rates, etc. So I am exploring that concept. Additionally, I have a larger investor who may not necessarily have the time to analyze the deal in depth and would need to leverage someone else to do it. Would you view this differently as compared to working with individual investors? Thanks for your time

Tom S. · Answer

@Jeremy Whiting  Personally I like to analyze my own deals, especially for rehabs, I would have my own contractors I typically work with and know their rates and availability.

I would say if you're working with investors, you should definitely have a resume with a lot of completed deals you've personally worked on.  I think that would be strongest asset you could bring to the table.

How could I bring value as a deal analyst?

Most Popular Reply