How to analyze deals

Question

So I'm 16 I'm really into RE and I have a decent amount of knowledge from books and podcasts but I want to start applying that. I want to get practice evaluating deals so by the time I'm 18 I'm prepared if the opportunity presents itself.
When looking at single or multi family homes where do you start, when analyzing a deal?

Are there any free calculators I could play around with to run some numbers?

Are there any videos or articles you could recommend to me that explain how to analyze deals?

Mackaylee Beach · Answer

Kudos to you for getting such an early start and for planning ahead for your future!Here are a few steps and resources to get you started:

• **Learn the Basics:**Understand terms like Cap Rate, Net Operating Income (NOI), Cash-on-Cash Return, and Gross Rent Multiplier (GRM).Familiarize yourself with the local real estate market to gauge property values and rental rates.
• Understand terms like Cap Rate, Net Operating Income (NOI), Cash-on-Cash Return, and Gross Rent Multiplier (GRM).
• Familiarize yourself with the local real estate market to gauge property values and rental rates.
• **Use Online Resources:**Websites like BiggerPockets offer a wealth of articles and forums where real estate investors share advice and experiences.YouTube channels such as Graham Stephan and Meet Kevin provide practical insights and walkthroughs on deal analysis.
• Websites like BiggerPockets offer a wealth of articles and forums where real estate investors share advice and experiences.
• YouTube channels such as Graham Stephan and Meet Kevin provide practical insights and walkthroughs on deal analysis.
• **Practice with Calculators:**Websites like Zillow or Redfin often have built-in mortgage calculators that can help estimate monthly payments.Look for free deal analysis calculators on sites like BiggerPockets to run through potential scenarios.
• Websites like Zillow or Redfin often have built-in mortgage calculators that can help estimate monthly payments.
• Look for free deal analysis calculators on sites like BiggerPockets to run through potential scenarios.
• **Educational Videos and Articles:**Check out articles on Investopedia for in-depth explanations of real estate investment concepts.Consider watching videos by channels like The Real Estate Guys or Ken McElroy for expert advice on evaluating deals.
• Check out articles on Investopedia for in-depth explanations of real estate investment concepts.
• Consider watching videos by channels like The Real Estate Guys or Ken McElroy for expert advice on evaluating deals.

• Understand terms like Cap Rate, Net Operating Income (NOI), Cash-on-Cash Return, and Gross Rent Multiplier (GRM).
• Familiarize yourself with the local real estate market to gauge property values and rental rates.

• Websites like BiggerPockets offer a wealth of articles and forums where real estate investors share advice and experiences.
• YouTube channels such as Graham Stephan and Meet Kevin provide practical insights and walkthroughs on deal analysis.

• Websites like Zillow or Redfin often have built-in mortgage calculators that can help estimate monthly payments.
• Look for free deal analysis calculators on sites like BiggerPockets to run through potential scenarios.

• Check out articles on Investopedia for in-depth explanations of real estate investment concepts.
• Consider watching videos by channels like The Real Estate Guys or Ken McElroy for expert advice on evaluating deals.

By consistently learning and practicing with these tools and resources, you'll build the confidence and knowledge needed to tackle real estate deals effectively in the future. Remember to take notes and reflect on what you learn from each resource to deepen your understanding. Happy investing!

Kyle Vogeler · Answer

There are lots of free calculators out there. I can also share the analysis template I use if you're interested - send me a message.