How to practice analyzing deals

[Alex King]

Hello everyone, I would like to start practicing analyzing deals. It was recommended on the bigger pockets podcast to analyze 3 deals a day as practice, so I'm more comfortable when the time comes to find a real deal. I was curious how I go about doing this? How do I find distressed properties I can run practice numbers on? How do I come up with accurate repair estimates without visiting the property? The way they spoke on the podcast led me to believe that these property analysis's can be done from home. Is this true? Or do I need to visit the property while getting started? Also, I'm aware of the bigger pockets wholesaling calculator. It seems like an awesome resource. However, because I'm so new to the game, I would like to understand all of the numbers before I start taking short cuts.

[Ned Carey]

@Alex King there are lots of posts and blogs on evaluating deals here on BP A search should bring up plenty of info. The 50% rule, 2% rule (the percentage can vary but the concept is find the % that works for you) and the 70% rule are good starting guide lines.

Some of the free guides under the education tab should help. Both of J Scott's Books are excellent.

You don't. You cant estimate repairs without seeing the property.

How do I find distressed properties I can run practice numbers on?

Wholesaler deals, sold deals, listed deals etc. public auctions (not courthouse step auctions) are a great way to evaluate deals. inspect the house before the auction and then estimate what it will go for. You will get real time feedback what another investor will pay for a specific house.