Comments on: You Can’t “Trick the Deal” http://www.biggerpockets.com/renewsblog/2007/11/27/real-estate-deal-cashflow/ Learn, Network, Invest Mon, 23 Nov 2009 06:42:49 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Las Vegas Real Estate Guy http://www.biggerpockets.com/renewsblog/2007/11/27/real-estate-deal-cashflow/comment-page-1/#comment-52619 Las Vegas Real Estate Guy Wed, 28 Nov 2007 06:31:31 +0000 http://www.biggerpockets.com/renewsblog/2007/11/27/real-estate-deal-cashflow/#comment-52619 There are so many variables to take into consideration. One of my favorites happened to a friend of mine. He was buying a four plex to rent out and the agent neglected to tell him that the next street over was rezoned and a funeral parlor was going in. The parlor would be sharing a common backwall. Not exactly the most choice neighbor in the world, but at least they'll be quiet... There are so many variables to take into consideration. One of my favorites happened to a friend of mine. He was buying a four plex to rent out and the agent neglected to tell him that the next street over was rezoned and a funeral parlor was going in. The parlor would be sharing a common backwall. Not exactly the most choice neighbor in the world, but at least they’ll be quiet…

]]> By: Chris Lengquist http://www.biggerpockets.com/renewsblog/2007/11/27/real-estate-deal-cashflow/comment-page-1/#comment-52615 Chris Lengquist Wed, 28 Nov 2007 03:11:03 +0000 http://www.biggerpockets.com/renewsblog/2007/11/27/real-estate-deal-cashflow/#comment-52615 "Novice investors tend to accept the numbers presented to them at face value." Great sentence with so much truth in it. I cannot tell you how many times the verification process shakes out a "misunderstanding" or two. Oh, did I misunderstand that the rents were $1,000/mo but you forgot to mention the one month free. So really we're talking about $917/mo. May not sound like a big deal. But it is when your cash flow drops $83/mo. That's just one very small example. “Novice investors tend to accept the numbers presented to them at face value.”

Great sentence with so much truth in it. I cannot tell you how many times the verification process shakes out a “misunderstanding” or two. Oh, did I misunderstand that the rents were $1,000/mo but you forgot to mention the one month free. So really we’re talking about $917/mo. May not sound like a big deal. But it is when your cash flow drops $83/mo. That’s just one very small example.

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