My B.P. calculator experience

3 Replies

Just wanted to share my recent mind altering experience about the B.P. calculators. Like most, I have clearly heard the importance of analyzing deals and how the B.P. calculators can and do help, especially if just learning how to analyze deals, like my self. After spending a little time this week figuring out how they work and running numbers of realtor.com and Zillow for experience, I am blown away about inaccurate my "thoughts" turned out to be at first glance of properties. I budget and manage huge construction projects in film industry and have learned a lot of hard lessons about the process in my profession. I am grateful to B.P. for creating the calculators to help with the learning curve in real estate and which there had been a tool like these in the film industry when I started! Thanks B.P.!

Great job Jordan. Properly analyzing investment opportunities is a necessary first step that a lot of people sometime miss completely. Now, you're better equipped to review deals and make great investments!

The calculators are really a misnomer as to their end-value. They are good tepid evaluators, but they are not a solution to vetting properties without seeing them or when you don't understand the metrics you are putting into them. For example, a lot of new investors pump figures into the calculator and then in order to get a deal to work for them, they just start adjusting the numbers. That is not how it works. I've never used a calculator in 30 years, but I do think they hold value, but not how many investors are using them to crunch 25 deals a day when they've never been inside a house. Once you've seen a property and know the area, the calculators can be really valuable, but if you don't understand how the calculations change from state to state, you will be way off.

@Jonathan Greene Thanks for the info! I couldn't agree more. I have found tools are not a replacement for experience, they only help preform learned tasks faster.  My 20+ years in film construction has proved the best table saw doesn't make me a better builder if I don't understand the foundation of a movie set.