What are your Top 3 “great deal” indicators

Question

Besides the obvious indicator “pricing”, what are your top 3 indicators that show you a property is a great deal. Thanks!

Jean Rychlik · Answer

@Jose Antonio Flores Have you watched this?

Josh Caldwell · Answer

There are 3 things that make a deal sexy in my world

1 The most obvious is that I can buy it below market price.

2 Great terms, think owner financing, and me using as little of my cash as possible, like zero down payment

3 huge upside. This is flip territory. Give me a deal where I can buy at X put Y into it and sell it for Z where Z is much bigger than X+Y and I am drooling all over it.

Wholesalers usually forget to explain what makes their deal sexy, they just throw up a price.  That is wrong. If you want to make money as a wholesaler, do two things.

1 tell your buyer what is great about your deal, that fact that you have a house  for sale means nothing to me.

2 find a way to make the house easy to buy.  This simple step will set you apart from every other wholesaler in the market, and make your buyers list massive.

Jose Antonio Flores · Answer

Hello, Richard

Personally, these are my quick 3 indicators that CAN make a good deal are:

1. Good Location

2. Properties that have problems and need improvements (rehab)

3. The 1% test (A property or unit has to rent for at least 1% of its value).

Example: A unit renting for $100,000 should rent for at least $1,000.

Jose Flores Miami, Fl

Jeffrey Donis · Answer

@Richard Zambrano How good the market is, cash flow, and value add-potential.

Cody Neumann · Answer

@Richard Zambrano

- For me personally I look for $100 per unit on a multifamily or $200 per month cashflow on a single family.

- At least 12% cash on cash return

- In a desireabls area