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Updated over 7 years ago on . Most recent reply

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Paul LaSpina
  • Specialist
  • Manhattan, NY
12
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85
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Evaluating if it's a good deal or not?

Paul LaSpina
  • Specialist
  • Manhattan, NY
Posted

I'm newbie investor and I've done all the reading and learning to get started. My concern at this point is this. I get allot of wholesalers emailing and texting me opportunities, any are out of state which I don't think I'm ready for. In any case, What is step one in determining if I should even looking into the deal any further? Do I use a quick "Rule of thumb" to make this determination? 50% rule? 2% rule? ARV?.... that's where I'm stuck already, I get these properties but how do I even start to determine if it's worth looking at?

In addition, How do I get all of the additional information needed to eval? Taxes? Liens? True rehab costs? ARV?... I know these are basic questions but I just don't know the step by step to even take the next step if it's worth further eval.

Hope to hear back with some great advise and expertise/experience in simply taking step 1....

Most Popular Reply

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1,014
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672
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Henri Meli
  • Investor
  • Morrisville, NC
672
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1,014
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Henri Meli
  • Investor
  • Morrisville, NC
Replied

@Paul LaSpina . Something that's a deal for me might not be a deal for you. It really depends on your goals (short term, long terms), your resources, ... etc. Some people focus on cashflow, other focus on appreciation and others focus on both. Some are not even going to look, if the location is outside their targeted locations (state, city, ... etc). First thing you need to do is define your goals clearly. Once you have done that, the rest will come. You can get tax information on the county's website. You can get insurance information by asking your favorite insurance agent. Rehab/ARV: I think there are a few blogs on this site, which give you an idea on how to evaluate them. This site also has various calculators, which spit out various output (IRRs, CoC returns, ... etc). Looks like you have a little more reading to do :) ...

Good luck !!!

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