Formula

Can anyone help me? Is there a formula that can be used to determine a good deal or not?

Comments(6)

  • active_re_investor7th October, 2004

    Simple answer: NO

    There are books on the topic of RE investing. Many focus on a particular subset. What makes for a good deal for one investor might be very different for another.

    You posted in the bird-dog section. If you want to be a bird-dog then two things will dominate what you should focus on.

    1. Bird-dogs work for investors so find some investors and get them to tell you want they would be interested in. Specifics so you know when to call them.

    2. Where you look also drives what is likely. Some areas are depressed and have bargains. Some areas are hot markets and most deals are very close to full market. There are always exceptions but you will find that what works in one area at a point in time will change as time moves on or as you switch areas.

    Between your local market conditions and what the specific investors want to see you will have a profile for what to focus on.

    John
    [addsig]

  • dakaveli7th October, 2004

    what would you suggest with this deal ,

    Sell Price = 55,000 (what is owed)
    Mortgage Payment= $599 inlcudes taxes at 7.25%
    No liens against it
    Currently rented at $675 a month
    comparables at about $70,000 according to realtor friend

    Should i leave it alone?

  • davehays7th October, 2004

    beware of "realtor friends" telling you what the comps come in. Do your own due diligence, don't trust your realtor friends, better to be safe than sorry.

    IF those numbers are right, it would not be a bad rental property if needed NO work at all

  • kenmax7th October, 2004

    all deals are different and require measuring them as such......km

  • patrecejames7th October, 2004

    cash flow looks very slim unless you can raise the rent, it may be better to try to sell it retail. my .002 cents
    [addsig]

  • ray_higdon7th October, 2004

    dakaveli, I wouldn't do it. I would reccomend reading Robert Allen's No money down for the 90's as it has some good formulas in there to help determine a deal.

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