Investor · Nashville · Member since 2026 · 37 posts · 11 votes
I’m still early in my real estate journey and spending a lot of time learning how deals actually get evaluated by people who are actively buying. One thing I’m trying to understand better is what makes a deal worth a closer look versus an easy pass. On paper, numbers can look fine, but I know there's more to it than just ARV and rehab estimates.
For those of you who are currently buying:
What are the first few things you look at before spending real time on a deal?
Are there any red flags that immediately make you move on?
Not looking to sell anything, just trying to improve how I think about deals and learn from people who’ve been doing this longer than I have.
I’m still early in my real estate journey and spending a lot of time learning how deals actually get evaluated by people who are actively buying. One thing I’m trying to understand better is what makes a deal worth a closer look versus an easy pass. On paper, numbers can look fine, but I know there's more to it than just ARV and rehab estimates.
For those of you who are currently buying:
What are the first few things you look at before spending real time on a deal?
Are there any red flags that immediately make you move on?
Not looking to sell anything, just trying to improve how I think about deals and learn from people who’ve been doing this longer than I have.
. I look at things differently than the average investor.
I think most investors either try to justify getting at least "some" cashflow in a rough neighborhood, or they justify a property in a place where there is no cashflow by telling themselves that the appreciation will make up for it "in the long run".
I'm a kind of "I want it now" type, because we don't really know what tomorrow brings and buying in "rough" neighborhoods just isn't my thing. I have the battle scars to show it. So, I settled on finding deals I could buy "off market" in nice neighborhoods, that cashflow, because I understand the financing side of real estate.
You don't make money using a bank's money to buy real estate, you use the seller's money. It's a little tough for the average person to grasp that and typically requires teaching.
I’m still early in my real estate journey and spending a lot of time learning how deals actually get evaluated by people who are actively buying. One thing I’m trying to understand better is what makes a deal worth a closer look versus an easy pass. On paper, numbers can look fine, but I know there's more to it than just ARV and rehab estimates.
For those of you who are currently buying:
What are the first few things you look at before spending real time on a deal?
Are there any red flags that immediately make you move on?
Not looking to sell anything, just trying to improve how I think about deals and learn from people who’ve been doing this longer than I have.
. I look at things differently than the average investor.
I think most investors either try to justify getting at least "some" cashflow in a rough neighborhood, or they justify a property in a place where there is no cashflow by telling themselves that the appreciation will make up for it "in the long run".
I'm a kind of "I want it now" type, because we don't really know what tomorrow brings and buying in "rough" neighborhoods just isn't my thing. I have the battle scars to show it. So, I settled on finding deals I could buy "off market" in nice neighborhoods, that cashflow, because I understand the financing side of real estate.
You don't make money using a bank's money to buy real estate, you use the seller's money. It's a little tough for the average person to grasp that and typically requires teaching.
Investor · Nashville · Member since 2026 · 37 posts · 11 votes
8mo
That makes a lot of sense. I like the focus on good neighborhoods and cash flow now, instead of forcing deals to work or hoping appreciation bails it out.
Using seller financing instead of relying on banks is something I’m still learning, but it seems like a big advantage when done right. Appreciate you sharing that perspective.
That makes a lot of sense. I like the focus on good neighborhoods and cash flow now, instead of forcing deals to work or hoping appreciation bails it out.
Using seller financing instead of relying on banks is something I’m still learning, but it seems like a big advantage when done right. Appreciate you sharing that perspective.
When done right is the key. It's too late after you've done the deal. Telling a judge that you "thought" . . . doesn't impress him or change the law. Too many on Youtube gloss over the law to get big followings. When you try to bring that up on Facebook, you get banned from the "Subject To" group, ask me how I know. So, if someone is serious about doing creative financing "legally" and "safely" as well as profitably, it takes someone who takes the law serious.
Like @Ken M. I don't buy in dangerous areas that may have higher cash flows.
For me I have spent a great deal of time knowing my markets, knowing what makes a deal for me and knowing the laws that impact where I buy and sell real estate.
Knowing your market is important so you know comparables, rents, economics, jobs, demographics and social issues. Many things can impact real estate. With this knowledge it's easier to do a preliminary deal assessment.
Knowing your deal means understanding what you are capable of doing yourself or with your team This is different for everyone and helps when sifting through deal prospects.
Knowing the laws is important because they can limit or expand on what you can do.
Investor · Nashville · Member since 2026 · 37 posts · 11 votes
8mo
Thanks @Ken M. for for input! That’s a great point. “When done right” really is the difference, especially with creative financing. It seems like a lot of content online focuses on the upside without spending enough time on the legal side or the risks if things aren’t structured properly. Definitely learning Local law would be one of top important factors.
Thanks @Ken M. for for input! That’s a great point. “When done right” really is the difference, especially with creative financing. It seems like a lot of content online focuses on the upside without spending enough time on the legal side or the risks if things aren’t structured properly. Definitely learning Local law would be one of top important factors.
Local law is quite important, but a lot of Federal law is being ignored. Once the "shake up" occurs, ( The Feds are focusing on fraud of a different type right now, particularly "daycare" fraud in Minnesota and other hidden types) but with the attention turning to mortgages and real estate and hedge funds buying property, it will only accelerate the need to keep transactions 'clean". Most fraud can be investigated for 3 years after discovery, some for longer. Creative financing is legal, and Subject To is legal, when done legally. I see a lot of things on facebook being taught that aren't legal.