Learn how to evaluate a wholesaling deal. This course shows novice real estate investors how to calculate and interpret the most important numbers when analyzing deals.
- Hey guys, welcome to this course. In this pre-lecture, I just want to take a quick moment to go over what this course covers and what it doesn't cover. This course will not teach you everything you need to know about wholesaling. In fact, this course is only going to teach you a small but important part of the wholesaling process. So, what's covered in this course? Well, I'm going to show you the techniques and the process for doing the right financial analysis on a deal so you can ultimately decide how much should I offer on this property? What's the most I can afford to pay for this? And what is the 70% rule? How do you use it? And what are some of the disadvantages of it? And also, we're going to cover some of the tips and strategies for getting better estimates and comps that you're going to use for your calculations. So what's not covered in this course? Everything else. From building a foundational real estate knowledge to forming the right team, to generating leads, how to approach sellers, how to do property inspections, how and where to find comps, to deal funding and negotiations and closing, none of that. There are other great resources for that. This course is all about and only about the analysis. But, it is a crucial part of the puzzle that a lot of early investors are going to get wrong. A lot of early investors are just going to blindly follow a formula or a rule. So why is it so important to get the analysis right? Well, if you don't get the right calculations, you won't be able to consistently win in this game. You are going to end up doing one of two things if you don't know how to run the numbers for your deals. You're either going to be over estimating what you're going to be able to pay for a property. In which case, you might end up getting in deals that you shouldn't be getting into, and overpaying for properties and end up losing on it later on, or realize that you can't sell it for what you think you can sell it for. On the other side, you might miss out on deals if you calculate it wrong and you consistently under offer on deals because you're not consistently under offer, they're not going to be competitive and you're going to be missing out on deals that are otherwise good. So, it is crucial for you to be able to understand how to run the numbers and how to get numbers that you can rely on. Now, we're going to go over some important theories and concepts and I'm going to show you how to apply them as we walk through a case study together. You'll also get my custom built wholesaling calculator that will help you make these calculations automatically, once you learn how to use them. So, let's get started.
- Name the formula used to calculate the MAO from the AVR.
- Summarize the 70% rule.
- Differentiate between the rehab estimator, ARV, and MAO calculator worksheets.
- Describe the factors in an AVR estimate.
- Cite the formulas that are helpful when pitching to a flip investor buyer.
- Explain the difference between recently sold comps and rental comps.