Pick a market based on the demographics, for example, and then get comfortable with what things cost and what they rent for.

Most of these eliminate the absolute “newbie” who has been taught to run around making “offers” on FSBOs based on “guesstimates” of repairs and then try to “sell” the contract to a fix n flip buyer and if not successful utilize a “weasel” clause to disengage from the contract unscathed.  

When you go to pick a new restaurant, you have some idea of what to expect based on the $ - $$$$  used.

Otherwise, I would always suggest hiring an attorney to draft one up for you, or at the very least, find a template and have an attorney review it to be sure you've got your bases covered.Good luck! 

You'll have a "base rate", usually based on LTV and credit score on a grid, and then you'll have "loan level pricing adjustments" (LLPAs) that will adjust that.

Hi Dylan - I am also new to RE investing but have a lot of background in building a solid financial base.

I'm glad this thread came across to me based on my keyword alerts!  

On projected current rates and Expenses based on NOI I got a valuation that is 50 - 55 % lower than the asking price which is based on comparable residential units in the area I was looking at ...  

Located right in front of a large navy base.

Be careful about the neighborhoods, there are some neighborhoods in the counties that I won't put money into based on downward trends of maintenance and appearance.