Before you start looking for properties, you may want to define what it is you're looking for. What's a deal for you? What types of properties? What locations? What price range? What income? What Cash on Cash Return on Investment? And much more...
In this workshop class you'll develop your own specific buying criteria:
- Why you may want separate criteria for different properties (single family homes, multi-family, commercial, house hacking, Nomad™, BRRR/BRRRR, fix and flip, wholesaling, out of state, etc)
- Downloadable
Buying Criteria Worksheet - The "Art" of selecting your buying criteria (narrow versus wide, time available to find property, how many do you need and more)
- Back-testing your criteria to see how many matches have existed for your historically
- MLS Searchable criteria versus Not MLS Searchable criteria and the pros and cons of each
- A discussion of the ideal types of properties according to The Millionaire Real Estate Investor book by Gary Keller et al
- Types of properties and number of units
- Location, location, location
- How are we going to finance these properties and the impact on establishing your criteria
- Price and all the complex considerations related to property price
- Discounts: buying at a discount, how big of a discount do you need, determining Fair Market Value (FMV) and what happens if it does not appraise
- Insurability
- Rent, rent comps, buying under-rented properties and using rent as a selection criteria
- The metrics: Cash Flow, Cap Rate, Cash on Cash, Gross Rent Multiplier
- Cash Flow Power Meter™ and understanding all 4 areas of return when buying properties
- Exit strategies and their impact on your selection criteria
- Beds, baths and square footage - some easy criteria
- Year built and effective year built
- Flood plains and other unusual considerations
- Property condition and rent ready costs
- Holding periods and their impact on selection criteria
- Musts and wants
- Malcolm Gladwell's book Blink and the importance of trusting your gut
- Plus much more...
Duration: 1 hours and 41 minutes
Recorded: July 22, 2020
Instructor: James Orr