Comments on: How to come up with your Offer Price on a Real Estate Deal: Do’s and Don’ts http://www.biggerpockets.com/renewsblog/2009/10/27/dos-donts-offer-price/ Learn, Network, Invest Sat, 11 Feb 2012 01:23:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Sandyhttp://www.biggerpockets.com/renewsblog/2009/10/27/dos-donts-offer-price/#comment-75933 Sandy Thu, 03 Dec 2009 10:46:33 +0000 http://www.biggerpockets.com/renewsblog/?p=8061#comment-75933 Can anyone help me with the excel formula for calculating the offer price when I specify the Cash on Cash return that is required? Basic inputs would be interest rate, down payment %, vacancy %, rental income, operating expenses and of course term of the loan. I have made a spreadsheet but there is some error and the price usually come about 5% too high. And while any online tool is ok, I would like to understand the exact math behind it. Appreciate any help. Thanks Can anyone help me with the excel formula for calculating the offer price when I specify the Cash on Cash return that is required? Basic inputs would be interest rate, down payment %, vacancy %, rental income, operating expenses and of course term of the loan. I have made a spreadsheet but there is some error and the price usually come about 5% too high. And while any online tool is ok, I would like to understand the exact math behind it. Appreciate any help. Thanks

]]> By: Justin Piercehttp://www.biggerpockets.com/renewsblog/2009/10/27/dos-donts-offer-price/#comment-74839 Justin Pierce Mon, 02 Nov 2009 04:46:41 +0000 http://www.biggerpockets.com/renewsblog/?p=8061#comment-74839 For me it dependes on the situation. If I'm buying to flip then I go through a pretty complicated series of deductions off the anticipated after repair value. If I'm buying to hold then I usually start my search looking for properties that have around a 10% Cap rate.You are very right... Never... NEVER fall in love with a property. There is always another deal to be had. For me it dependes on the situation. If I’m buying to flip then I go through a pretty complicated series of deductions off the anticipated after repair value. If I’m buying to hold then I usually start my search looking for properties that have around a 10% Cap rate.

You are very right… Never… NEVER fall in love with a property. There is always another deal to be had.

]]> By: Ryan Moellerhttp://www.biggerpockets.com/renewsblog/2009/10/27/dos-donts-offer-price/#comment-74667 Ryan Moeller Tue, 27 Oct 2009 23:00:07 +0000 http://www.biggerpockets.com/renewsblog/?p=8061#comment-74667 Thanks Liz. I agree, this is business and only about the numbers. To many decisions are emotional and not good informed business decisions.I found software very helpful. Eventually I evaluated so many deals that I customized my own excel spreadsheets that have all kinds of crazy calculations for LTV, cash flow, Cap Rate, cash on cash return, ROI, etc. Now I am to the point where I can run the numbers in my head and spit out an offer range. During due diligence I really disect the numbers. Thanks Liz. I agree, this is business and only about the numbers. To many decisions are emotional and not good informed business decisions.

I found software very helpful. Eventually I evaluated so many deals that I customized my own excel spreadsheets that have all kinds of crazy calculations for LTV, cash flow, Cap Rate, cash on cash return, ROI, etc. Now I am to the point where I can run the numbers in my head and spit out an offer range. During due diligence I really disect the numbers.

]]> By: Lizhttp://www.biggerpockets.com/renewsblog/2009/10/27/dos-donts-offer-price/#comment-74666 Liz Tue, 27 Oct 2009 22:35:11 +0000 http://www.biggerpockets.com/renewsblog/?p=8061#comment-74666 Good article Ryan. Clients really need to be careful not to get emotionally involved. I've found and use a free software provided online by RealEstateCritic.com which allows you to itemize and even save scenarios. Makes things much easier.<a href="http://www.lizvossrealestate.com/" rel="nofollow">San Antonio Real Estate</a> Good article Ryan. Clients really need to be careful not to get emotionally involved. I’ve found and use a free software provided online by RealEstateCritic.com which allows you to itemize and even save scenarios. Makes things much easier.

San Antonio Real Estate

]]>