West DFW REI Group

 

One of the easiest mistakes a real estate investor can make is falling in love with a property before falling in love with the numbers.

You see a house that looks like a great opportunity. The seller is motivated. The neighborhood looks promising. The property seems like it could be worth significantly more after repairs.

So you start thinking:

“How much should I offer?”

But that may be the wrong question to ask first.

Before you make an offer, you need to answer a more important question:

“What is this property actually worth to me as an investment?”

That answer requires more than pulling a few comparable sales and subtracting estimated repairs. A good deal analysis starts with the market, moves into valuation, accounts for the costs and risks of the specific strategy, and only then gets to the offer price.

That is the process successful investors need to develop.

Start With the Market—Not the Property

When investors analyze a potential deal, it is tempting to immediately focus on the house.

How many bedrooms?

How big is it?

How much work does it need?

What did the seller pay?

Those questions matter, but they don't tell you enough.

Before determining value, you need to understand the market around the property.

Look at factors such as:

• What are comparable properties actually selling for?
• How quickly are properties selling?
• What is currently available for buyers?
• Are buyers paying close to asking price?
• Are propert ... Read More…

 Evaluating A Real Estate Investment Deal

We talk with many people looking to buy real estate investment properties in Dallas Fort Worth and the surrounding areas. Some of them know what they're doing when evaluating a real estate investment deal, and some are still in the learning process.

But, since our entire business is finding great deals at deep discounts... and often passing those deals onto real estate investors like you... I thought it would be a great idea to share with you some resources to evaluate a real estate investment deal.  This works in any market... Dallas Fort Worth and surrounding areas, Texas, and any other states across the country.

When you boil it down... evaluating a real estate deal is a pretty simple process.  If you're looking to buy real estate as an investment, wholesale properties, hold them for rent... whatever, one of the most important parts is "buying it right" (i.e., not overpaying).

So let's dive in.

What Goes Into Evaluating A Real Estate Investment Deal - (for single-family houses)

There are just a few main elements when you're evaluating a deal.

• Cost of repairs needed to get it back up to good condition. The after-repair value (ARV) of the property (what it's worth and can sell for today once it's fixed up). If you're going to buy and hold for a rental... you need to know what you can rent it out for and what your "debt service" (mortgage payment) will be.  Knowing t ... Read More…

Benefits of Joining Your Local REIA

REIA is an abbreviation for Real Estate Investing Association / Group.  REIA groups or clubs as some are called, are an invaluable tool to meet people from all walks of life who have an interest in real estate investing and to learn all about the REI business.  Members of REIA groups are like-minded groups of men and women “where deals and funding meet.”  Companies have been formed, and deals have been made directly from the relationships developed and information shared at REIA group events.  I refer to them as your real estate investor “watering hole.”  Members attend the “Watering Hole” to learn and find deals and funding. 

Learn more about the benefits of joining your local REIA group through the Infographic below:

Education - Here's a small list of topics you may see at your local REIA:

+ Getting Started

+ Foreclosures

+ Short Sales

+ Nothing Down Purchases

+ Flipping Properties

+ How to Estimate the After Repaired Value

+ Refurbishing & Rehabbing

+ Lease/Options

+ Finding Bargain Properties

+ Writing Offers

+ Building profitable partnerships

+ Marketing to Find Motivated Sellers

+ Marketing to Sell Your Houses

+ Buying Discounted Notes & Mortgages

+ Mobile Homes & Mobile Home Parks

+ 1031 Exchanges & Other Tax Issues

+ Property Management

+ Using Self-Directed IRAs

+ Lawsuit or Asset Protection & Legal Issues

+ How to Fi ... Read More…