The Best Real Estate Deal Analysis Spreadsheet Ever… FREE!
If you’re looking for The World’s Greatest Real Estate Deal Analysis Spreadsheet™, then you’ve found the right place. Download it, for free, using the button below or read more about its rich provenance and how to use this amazingly valuable tool.
Gone are the days of:
- Buying unprofitable properties because you did not run the numbers—or worse… you ran the numbers wrong
- Getting stuck with loser, cash-flowing-sucking dogs of properties that don’t put money in your pocket each month
- Worrying you got a math error somewhere in your spreadsheet
- Taking hours to analyze each property just to find out it is a non-deal
When my best friend Brian Williams first put together The World’s Greatest Real Estate Deal Analysis Spreadsheet™ he wanted to make sure it met three criteria:
- It was quick and easy to use for analyzing potential properties he wanted to buy
- It was correct with no math errors
- It could model basic single-family-home buy-and-hold purchases but also handle more sophisticated strategies like buying multi-family, apartments, retail, industrial as well as lease-options, subject-to, partnerships and more
And, so he built the very first version to use for himself and began using to start buying rental properties. The more he used it, the more improvements he made.
Then, we began to teach real estate investor classes on deal analysis using the spreadsheet and got feedback from a wide array of real estate investors from first-time newbie investors to battle-hardened sophisticated apartment buyers. He made improvements and used it himself. Others began to use the spreadsheet and shared what they loved about it and what Brian could do to make it better.
Brian toiled for hours and hours and hours over a period of years to perfect The World’s Greatest Real Estate Deal Analysis Spreadsheet™. With each improvement, seeking and getting feedback from many members of the 1,200+ member Northern Colorado Real Estate Investor Group.
And, now you can download and use it for yourself… completely free. Use the button below to download the most up-to-date version of the spreadsheet now or continue reading to learn more about the spreadsheet and training on how to analyze deals.
IMPORTANT NOTE: The spreadsheet is available in Microsoft Excel format (.xlsx).
More Powerful Than A Deal Analysis Spreadsheet:
The Real Estate Financial Planner™
Plus, the Real Estate Financial Planner™ was built with The World’s Greatest Real Estate Deal Analysis Spreadsheet™ at its foundation, so if you can use the spreadsheet to analyze a single deal, you can likely use the Real Estate Financial Planner™ to model your entire portfolio and investment strategy.
After Repair Value (ARV)
The ARV or After Repair Value is the value of the property at the time you purchase it, but after you invest the Rent Ready Costs in repairs.
We use this field when buying a property below current fair market value to show what the current fair market value of the property is. We call the fair market value the ARV since it is the value after you do any repairs to the property.
Purchase Price The Purchase Price is the price you are paying to buy the property.
- If you are buying the property at a discount, this should be lower than the ARV.
- If you are buying the property at a premium like with a VA loan, had to bid above appraised value to get your offer accepted or getting some seller concessions this might be higher than the ARV.
- The Purchase Price and ARV will be the same value if you are paying full retail price when you buy the property.
Seller Concessions are the dollar amount that you have negotiated with the seller to have the seller contribute toward your closing costs.
You enter the dollar amount in Seller Concessions you’ve negotiated and the spreadsheet will tell you what percent of the Purchase Price that amount in Seller Concessions is (the % number in blue to the left of the input field on the spreadsheet). This allows you to quickly see if you’re requesting a higher amount of Seller Concessions than you can use with your loan program (you’d find out this maximum percent from your lender based on which loan you’re getting).
Down Payment %
Down Payment % is the percent of the Purchase Price that you are putting down to purchase the property.
If you are buying the property with nothing down using traditional nothing down loans like VA or USDA, go ahead and put 0% for Down Payment %. Or, if you’re buying a property creatively using strategies like lease-options or subject-to and putting nothing down, go ahead and use zero. If you happen to be walking away from closing with money in your pocket you could even put a negative number here.
The spreadsheet will automatically calculate Down Payment Amount by multiplying your Down Payment % by your Purchase Price.
Closing Costs are the dollar amount you’re paying in closing costs.
These should include:
- your share of the title insurance and the fee the title company or attorney charges to close the transaction
- Any upfront private mortgage insurance premiums (if you’re putting less than 20% down and choosing a loan program/lender that offers this as an option)
- Any points you are paying to get your interest rate. In some cases you will receive a credit for voluntarily taking a slightly higher interest rate; in those cases make sure you subtract out the credit because it will offset your other closing cost expenses.
- The cost of your appraisal.
- The costs of things like your property inspection, surveys, radon test, pest control tests and sewer scope
- If you are paying a wholesaler a wholesale fee or a real estate agent a commission that is not already included in the purchase price be sure to add that as well.
Rent Ready Costs
Rent Ready Costs are the costs associated with getting the property ready to rent or occupy.
If you are buying a distressed property that needs work, this is where you put your costs of all the repairs, other people’s labor and—if you’re assigning a value to your own labor—the value of your labor as well.
If you are buying new construction property and you’re not rolling things like backyard landscaping, window blinds, air conditioners, garage door openers, refrigerators and fencing into the purchase by having the builder include them in the purchase price then be sure to include anything you need to come out of pocket for here.
Most rentals will have $500 to $1,000 of work from the inspection report for you to do before or shortly after you rent the property, so it is highly unusual to have $0 here.
Here’s how: calculate how much rent you’re missing out on by having below-market rent for the remainder of the current tenant’s lease and add that to your Rent Ready Costs.
For example, let’s say the rent is $200 below fair market rent and there are 7 months left on the lease before you opt not to renew the lease and replace them with a full fair-market rent tenant in the property. You take the $200 per month and multiply that amount by the 7 months remaining to find out how much the below-market rent is going to cost you.
If you choose to do this, be sure to use the fair-market rent for the Monthly Rent input field and not the current below-market rent since you are already accounting for the below-market rent as a one-time up-front write off.
Modeling below-market rent as a Rent Ready Costs makes the below-market rent a one-time up-front expense of acquisition instead of impacting how you evaluate your returns if it was a permanent lower rent.
Initial Reserve Account
Initial Reserve Account is the amount of money you set aside in a separate account as your initial reserves for the property.
We would typically only use Initial Reserve Account if we are putting together a partnership and need the partnership to have its own reserve funds. This field allows us to show that the money partner also needs to put up money for reserves and that those reserves will be included in our return on investment calculations.
Otherwise, for properties I’m buying personally for my own portfolio, I do not take into account reserves I have set aside as part of my Total Up Front Investment.
It would be more conservative for you to model having separate reserves for each property you buy, but few investors would analyze deals like that.
Prudent investors—even if they are not analyzing deals with separate reserve accounts—will have at least six months of all expenses for every property available to them in reserves. This would include mortgage payment (principle and interest), taxes, insurance, utilities, HOA and any expenses specific to properties they own. This is a conservative money management and risk reduction practice.
Need Deal Analysis Help?
We have over 14 hours of some of the best real estate deal analysis training available anywhere taught by two experienced real estate investors, me and Brian.
Or, if you have questions or need help using The World’s Greatest Real Estate Deal Analysis Spreadsheet™ feel free to post a comment below.