Does anyone have a profitability worksheet that they use when analyzing deals? I have yet to make my first deal, but I really would like some guidance from a seasoned investor before going into something that is doomed frmo the start.
Not sure if anyone has a template they could send me to analyze deals?
I’ve only bought 3 SFH over the years so I’m only very small time. I did make money on all. I didn’t use anything but good judgement and I really like being creative. i.e. I sold one of my properties in a garage sale during a real estate down turn in Pheonix. Another single family home in Missouri after the realtors did nothing for me I snatched a couple away from an agent who kindly brought them to the property and sold them within 5 minutes. Something the realtors couldn’t do in 5 months.
Since then I have gained extensive business experience where I did project management. My largest project using this type of proforma has been a $1.3M government supply center and 1/2 dozen smaller projects under $150K.
I now put together my own profitability templates. I started with a proforma that has a profitability sheet which I downloaded from Microsoft templates (they call them Profitability Projections). You’ll need excel.
You can play with these sheets. Keep one as a master and copy it and play with it to see what it does. It only takes basic math and percentages. You know…that high school math you thought you didn’t need to know. It’s really not that hard. I got a D in algebra in high school and now I’m doing it everyday for hours on end. It’s enjoyable.
Insert an assumption sheet then link the subtotals to the profitablity sheet. An assumption sheet can show how many properties and what their costs will be. Then an expense section showing repair costs, admin fees, taxes, holding costs etc. . the profitability sheet expenses can guide you in this section as well and your rapairs will be assumptions. I used to use the Office Depot catalog to get some of my estimated costs. The last section can be what you are going to try to get for each property.
I think this would be a good starting point if you want to build something you can continue to develop.
I hope this gives you some ideas or maybe you already knew these things, that’s ok as well. Have fun with these sheets. I really enjoy crunching the numbers in my proforma.
Frank V.D.