I am a beginner and I’m on the site everyday trying to learn all that I can about REI. I have Carlton Sheets, David Whistan courses. I also have read a lot of articles and listened to several teleseminars but none of the courses I have teach you how to do the math to see if the property is a good deal or not. What is the formula or steps for analyzing the property? How do I know if it is a good deal or not before I approach the seller?I am very motivated and dedicated to doing whatever I need to succeed with my REI but I’m still trying to grasp the basics regarding the math. If anyone knows of a book or something that can help me learn this , please inform me. I have seen some very good feedback from other experienced investors on this site. Could someone please help me?
first, read the entire package. if you paid for sheets - read it all, don’t breeze through it. if you do, you’ll find out there are several analysis forms - one being a cash flow analysis. that’s simple math - addition, multiplication and LOTS of SUBTRACTION!!! ;D
private message me if you want to talk more…
If you would like to Learn about Cap Rate, the univeral Formula to analyze a property please read this…
http://www.rentalcashflow.com/forum_topic.asp?TOPIC_ID=15&FORUM_ID=9&CAT_ID=1&Topic_Title=Cap+Rate+Explained&Forum_Title=Money+Money+Money
If you need help running the numbers, I will shamelessly recommend my RentalCashflow Analysis.
http://www.rentalcashflow.com/RentalCashflowAnalysis.asp
Thanks a lot! I will continue my reading and make sure I bookmark that section.
HAPPY INVESTING!
pmiles