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Analysis – How To Finalize A Deal Analysis

[/vc_column_text][vc_raw_html]JTNDaWZyYW1lJTIwaGVpZ2h0JTNEJTIyMTAwJTI1JTIyJTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cueW91dHViZS5jb20lMkZlbWJlZCUyRjJvbkxyeHhXeERvJTIyJTIwZnJhbWVib3JkZXIlM0QlMjIwJTIyJTIwYWxsb3clM0QlMjJhY2NlbGVyb21ldGVyJTNCJTIwYXV0b3BsYXklM0IlMjBjbGlwYm9hcmQtd3JpdGUlM0IlMjBlbmNyeXB0ZWQtbWVkaWElM0IlMjBneXJvc2NvcGUlM0IlMjBwaWN0dXJlLWluLXBpY3R1cmUlMjIlMjBhbGxvd2Z1bGxzY3JlZW4lM0UlM0MlMkZpZnJhbWUlM0U=[/vc_raw_html][vc_column_text]When looking at real estate investment, you want to make sure you finalize your analysis. You want to make sure that you’ve done a proper financial analysis. And a lot of people, they tend to do that at a very cursory level. I never really do a detailed analysis and that is fine when you are starting out and you just want to start putting in high-level offers. 

One of the things you need to do as part of your due diligence is a financial analysis. What that means is getting all the numbers from the owner and figuring out if that property makes sense for you. That includes a number of things, depending on what type of property you are looking for.

 

If you are looking for just a property that you are just going to acquire and flip, the financial analysis is going to be pretty easy.

 

All you need to know is some basic things like what are the property taxes what is the insurance cost, what are the renovation costs?

 What that means is that you have to look at the property to figure out what the current situation of the property is, and what can you purchase this property for. 

You would also need to do a market assessment to figure out what the after repair value is going to be for that property in that market. That is a pretty simple financial analysis for somebody that is going to do a fix and flip, which is ultimately the kind of analysis you would be doing whether you are a bird dog or you’re a wholesaler, or you’re a fix and flipper.

The other analysis is if there’s a rental property. In that case, you’ve got to look at all the expenses that you’re going to incur as part of owning that property and the types of rents you are going to get as part of renting out that property for that area.

 

Don’t move forward until you do that final step, which is doing a full-blown financial analysis for the property for the type of investment you are going to do.

 

If you like what you heard and you want more information, how to get started with real estate investing or how to grow your portfolio really fast, go to invest.jimpellerin.com

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