How to Analyze a Deal

Question

Hi Everyone, I am new to the RE game but have been listening to the BiggerPockets content for some time now. I often hear Brandon recommend that beginners start "analyzing deals" on platforms like Zillow, Redfin, etc. I am curious about how exactly to do that? What formulas can I be using on my own and what numbers/stats should I be looking at and analyzing?

Any help is much appreciated.

Brian Lenzer · Answer

Thank you Joshuas! I have begun compiling some metrics to analyze deals and very much appreciate the insight. All the best

Joshua Janus · Answer

I would suggest analyzing a lot of properties using the BiggerPockets calculators. You'll learn how to accurately calculate things such as property tax, insurance rates, loan points etc. All of this will help tremendously when analyzing your first real deal.

Josh McAuliffe · Answer

Hey Brian! It depends on what type of analysis you are looking to do. BP offers calculators for analyzing potential rental properties and BRRRR opportunities, amongst others. They also hold free webinars regularly that go through the process of analyzing deals. There are other calculators available on other platforms as well (some as simple as excel spreadsheets). Analyzing deals helps you start to get a feel for your market and for how to identify opportunities and determine how to construct a deal that makes sense. Keep in mind your individual goals determine what a good and bad deal are. Hope this helps!