Outsource Deal Analysis?

Question

Hello,

Has anyone experimented with outsourcing deal analysis and market analysis?  There is something very tempting about having someone smarter than myself doing basic analysis on tons of properties while I am sleeping and waking up to a short list of deals that meet some basic criteria that you define to the assistant.  Being a full time W2 guy, but motivated to find some properties, I wonder if using a virtual assistant might be beneficial.

Thanks!

Jeff

Jeff Howard · Answer

@Tom Mole

Hi Tom,

Great post! I like tacos and bad puns, so sounds like we could get along.  I generally understand the math and joined the PLUS membership so I could tinker around with the calculators on BP, which has helped me drill down on all the different components of analyzing a deal, but I certainly have A LOT to learn.  My one thought on outsourcing is more stacking the statistics in my favor for actually uncovering a deal.  If I could teach someone the exact way I like to look at the numbers, they could simply plug the numbers in routinely until they came across something that cash flows with a ROI of 89%, which is the only way I am going to buy something (I kid).  You find those in LA all the time right?  I dig @Brandon Turner 's videos and learn a lot from them.  My friend lives in North Hollywood and I have crunched some numbers on small multi family units up there.  Can you find anything that works in that arena?  I will PM you for more info on the sheet you use, I am always appreciative of new things to add to my analysis paralysis!

Happy Taco Tuesday

Jeff

Tom Mole · Answer

@Jeff Howard, I don't outsource for two basic reasons. One, I have more time to do it (no help for you there). Two, I have trust issues. I'm just not comfortable with someone else's evaluations. In fact, if I outsourced because I didn't "get the math", I'd be at the mercy of my hired help. I need to know how to do the analysis myself if only to be capable of vetting the results of my employee.

That being said, you still have the problem of having to grind through more deals than you have time to process. So, getting some help would be a good idea. Consider hiring a VA from Fivrr or whatever to crunch the raw data into something easier to swallow. I like to get help with data entry into a "screener" spreadsheet. The screener is built with the formulae for running the numbers to the point of Go/No Go. That can thin the field considerably. I only have to look at the "Go" list. A nice plus is that data can be used to feed the deal analyzer.

What? You don't have a screener spreadsheet? No biggy. Contact me and let's "taco-bout" it. (I like tacos.) You let me know what you're looking for and I'll whip something up on Google Sheets. It'll be fun.

Have you looked at the BP Deal Analyzer yet? it's really quick and automates a lot of the brainiac stuff. If you haven't seen it in action yet, sign up for @Brandon Turner's weekly webinar. He'll walk through the care and feeding of a deal. If you never seen it, you'll be amazed at how easy it is and the awesome reports it can generate for the deals you want to pursue.

I hope this helps. I'd love hear back from you. Maybe an update as you get your systems developed.

Cheers!!