Introduction and Overview
You will hear it more than once that “you make your money when you buy the property.” I don’t disagree with that, but I want to point out that you have to consider several numbers before you get to that purchase price. As a real estate investor you are not looking for a mere discount on the selling price. You are considering your exit strategy (hopefully with a Plan B), holding and repair costs, and backing into an offer amount.
In this course I’m going to show you how to research any property using free tools available to anyone. We have more in-depth tools available inside our coaching programs. The public-facing tools you are going to see in these lessons update from time to time so the screens you see in your research might be a little different from what you see in the lessons. But the principles I’m going to teach you are more important than the actual tools you use. Technology tools change all the time. If you understand what information you need, you’ll find a way to get it.
I understand you may have some misgivings about the usefulness of this course if math isn’t your thing. So let’s talk about that for a minute.
First of all, you don’t need to be a math whiz to be an effective real estate investor. Knowing your numbers isn’t the same thing as understanding complex formulas. And yes, there can be some pretty complex formulas in this business, but fortunately for you, there are lots of pre-programmed spreadsheets and calculator apps that make it easy for you.
Secondly, knowing your numbers is more about researching values, costs, and markets. Those are the numbers we really need. When it comes down to adding up costs, it’s — well — addition, the simplest math of all.
And lastly, we all have strengths and weaknesses. This truth goes beyond math or this course. You have some things you are good at and some other things you are not so good at. How should you proceed? It’s a given you should work hard to develop your natural abilities and strengths. But in my view, you should not totally ignore your weaknesses. When you start your own business you will wear all the hats at first. When you succeed and your business starts to grow, your first staff hires should probably address your weaker areas. But in the meantime, you will need to develop at least minimum competence so you can survive, succeed, and grow.
If you worry about your ability to perform the math in this business – don’t. Get your values, costs, and market knowledge down, and later you can hire an analyst.
Some of these videos will be a little more math intensive than others. Don’t ignore them, but don’t be frustrated if you don’t understand it or even see the importance right away. Push yourself to achieve at least an understanding of what you don’t know. Then move on and don’t limit yourself with negative self-talk. Instead say, “I don’t really get this right now, but I will.” And guess what? You can come back and watch the videos again and again.
So yes, buy the property right, knowing you’ve done your homework, and be prepared to enjoy those profits.