5 things to consider when looking for your next deal
Figuring out your best or preferred investing strategy can be hard. Like really hard. Finding a deal that meets all your variable requirements can be even more challenging.
- Does the deal fit with your strategy — there are probably 20 different areas of investing you could be doing. But doing all 20 might not be a good business strategy. Figuring out a preferred investing strategy that fits into your business model is the first step to understanding if a potential deal will work for you. Are you really only interested in income properties because you are looking for long term passive income? Then flips aren’t your game. Sure… the deal looks enticing but it doesn’t meet your financial goals and it might be out of your wheelhouse.
- Determine the ARV — after repair value is paramount to determining a deal! If you don’t know how to determine ARV you will never be able to accurately figure out if a deal is a deal. Zillow and Rental.com aren’t going to provide the numbers you need. Find a way to run comps and gain access to credible numbers. Look for an agent, get on the MLS, search public records or get a Realist subscription.
- Estimate your rehab #s — you need to actually see the house. There is no way to accurately figure out repair cost based on square footage and a few pictures. If you have no working knowledge of repairs and cost value then find a great contractor you can trust to help you get a real idea of the work a property might need. Search for a basic walk-thru list online and use it. The goal in estimating repair costs is to lessen risk. Most investors say you want to come within 5K of your estimated rehab.
- Find financing — do your homework and meet with lenders before you find a deal. Get pre-approved and know what your costs are going to be upfront. You are going to want to be able to close quickly. Think about how you might be able to raise private capital, look for creative financing options and be aware of holding costs.
- Sell, sell, sell — who are you selling to? What are the closing costs and transaction fees? Are you putting it on the MLS? Are you listing it with an agent (thus paying a commission)? Or are you going to get your license and sell it yourself? Selling a property quickly is the key to maintaining the project budget. The longer you hold a property the more $$$ you lose.
We are thrilled to present “ICOR’s Deal or No Deal” panel discussion with real-live deals from the ICOR email answer line. One of the best ways to learn is to learn through the experience and mistakes of others. Our panelists are going to give you the down and dirty on how to recognize a good deal or worse a bad deal.
Join us at this month’s meeting!
October Meeting Agenda & Logistics:
6:00-7:00pm: The Investor Lab — Join us for one or all of the following:Food Served from 6:00-7:00pm
- Workshop Troubleshooting Forum
- "Hot Seat" featuring an expert in deal finding, marketing, financing
- Team & Resource Building
- Haves & Wants and Sharing Success
7:00-8:30pm: Main Meeting — Deal or No Deal Live!
8:30pm: Continued Open Networking
Tuesday, October 13th
Colorado Springs Monthly Meeting – Deal or No Deal LIVE!
Wednesday, October 14th
Denver Monthly Meeting – Deal or No Deal LIVE!
(Click For More Information)
Thursday, October 15th
Northern Colorado Monthly Meeting – Deal or No Deal LIVE!