Today I would like to share with everyone the tool that I use to calculate deal. When I started investing, I used to do calculations on paper and that takes me about at least 15 min to figure out if a potential property is a good deal or not. That equates 4 deal analyzed in 1 hour only!! That was a real waste of my valuable time. So I decided to make my own customized software to help me analyzing deals and now I can analyze one deal in as little as 30 sec!! Within 30 seconds, I can find out how much my profit going to be, how much I can refinance the property for, and most importantly, how much do I need to offer to the seller in order for the deal to work. So if I want, I can analyze 120 deals in one hour!!
I have been a real estate investor for 2 years, and through these 2 years my partner and I have successfully invested in 9 deals and analyzed more than 2000 properties. Some are flipping deals, some are wholesale, and some are served as rental property to bring in cashflow. The analysis tool is designed for those of you who are looking for cashflow deals. What I mean is you buy the property with the intention to rent it out to tenants and wishing to collect rent from them. How this software works is you put in the desired amount of cashflow you want to make every month. Then you fill in the potential income, costs for holding the property. After you did that, the software will automatically generate how much you should offer to the seller. You will NOT buy the property if you can’t get the property for the offer amount. If you do, the more you pay, the less profit you will have this deal. So now because you have a system right now to decide if you want the property or not, making an decision about whether or not you should buy a property has become a piece of cake. Since the software has figured out for you how much money you should pay for this property for your desired profit, all you have to do is to make an offer, if they accept the offer lower than your calculated value, you got a great deal. If they reject it, you move on. Imaging how many more deals you have past on because you didn’t know or did have enough time to analyze. Now, you can start making some serious amount of offers to potential properties. Remember, it’s all numbers game. The more house you can make offer on, the more good deal you can find.
Tags: cashflow, investment calculator, investment properties, investment property, making offers, real estate, real estate investment
I just saw the news online that Warren Buffett just bought $3 billion stock in General Electric and $5 billon stock in Goldman Sachs. This is big news in the investing world. But during this sub-prime crisis it seems to be washed out. From the reaction of press I some how feel it’s not that an important news. Why is that?
I know everyone is concentrating on what the effect would be when the US government has passed the bill to bail out financial institutions. But in my opinion, people and the press are following on the wrong guy. Here is the question that I have for you: When it comes to investing, do you want to listen to the most successful person in the world in investing, or you want to listen to so called “advisors” or “experts” that are still working in their jobs for money, or politicians who never owned any sort of business before? I thought the answer is very simple, but because the press is hitting us everyday with bad news and conveniently forgot to mention what some of the real experts are doing. This gives most people the illusion that the whole economy is going down the tank. Don’t get me wrong, the whole crisis is bad, really bad, but not as bad as what they said.
Buffett once said that his investing strategy is to be GREEDY when everyone is scared. That’s exactly what he is doing right now, so it’s not a joke at all. That’s why our company is still trying to acquire as many properties as possible during this real estate buffet that you see once in your lifetime.
Buffett is having a buffet, so should I.
Tags: bail-out, cashflow properties, cashflow propertys, GE, General Electric, Goldman Sachs, real estate investing, stock, Warren Buffett
I have thought of this analogy yesterday and would like to share with you.
Let’s step back in time to 30 years ago in your neighborhood. If you would have bought “any” house for investment back then, wouldn’t it be a very good investment by now? Last year my parents sold their house in vancouver for $670,000. The same house was built for less than $40,000 back when 30 years ago. That’s about 2650% return. But the most amazing thing about real estate is the powerful “any”. You can buy “any” house back then and it will be a good investment.
What about stock? Yes, you can buy good stocks like coca cola. But how many companies that were big back then are still big now? Not a whole lot.
Here is the fundamental difference, a stock, or a company, needs to face many unknown risks and needs to be able to adapt to the market changes in order to be “possibly” successful for long time. That’s why there aren’t many stocks that does well and continues for a long time. But for real estate, a house is a house, it’s like that 30 years ago, and will continue to be like that unless you change the layout. Also, you can always insure your property against possible damages like fire, flood, or earthquakes.
But try talking to an insurance agent to insure your stock value, see what they will say to you.
Tags: cashflow, cashflow properties, cashflow propertys, real estate investment, stock
we are in the process of tweaking our own real estate investment calculator. Many real estate investors that we know have trouble figuring out whether the potential investment is a good deal or a bad deal. there are many aspects of calculating the deals including how you are going to profit from the deal, and what price should I make an offer on. because there are many cost involved before and after you rent out the property sometimes you simply overlooked and it might end up hurting your bottom line.
that’s why we made a very simple excel worksheet for our own purpose of calculating if the investment is good or not. in about 2 weeks, we will be able to have people who is interested to download the software for a very reasonable fee. we truly believe that many people will benefit from this software.
Tags: cash flow, cashflow, investment calculator, real estate investing, real estate investment