Updated almost 5 years ago on . Most recent reply
How Did You Learn How To Analyze Properties?
Hey BP fam newbie here and I was curious how did everyone learn to analyze properties to know whether it was a good deal? I would love to confidently be able to analyze deals so that I can start jumping in. Any book that you would recommend for newer investors to set up a system on analyzing properties and due diligence? Looking forward to everyone’s input and thanks in advance!
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#4 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Indianapolis, IN
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#4 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Indianapolis, IN
I started by building out excel spreadsheets and learning the basics. REI is a numbers game. By approaching home buying and investing this way I removed all emotion. You can develop buying scenarios (conventional, cash, private money) and quickly enter the offer price, rental income, and expenses. Understanding the numbers in your market and visualizing a strategy (buy & hold, flip, etc.) is really important.
PS: The BP calculators are great but they don't teach you anything. It just spits out numbers with no meaning behind it. Just my 2 cents.