Buyers Mistakes to Avoid When Analyzing a Deal

Don't take too long. Good deals don't wait around for indecisive people. Many people "think a deal to death." One way to lower your anxiety level with a deal is to move forward provisionally (i.e. with a clause of some sort.)
Don't trust the seller's numbers. Most sellers are not knowledgeable and they are a tad biased. They may have good intentions but they just don't know.

Don't trust the seller's appraisals. Their appraisal is a marketing piece. Get your own appraisal.

Don't do your math in pencil. It is not okay to fudge your numbers a little to make the deal cash flow or the rehab payoff. Beware some investors play with the numbers to make them show a marginal deal is better than it really is.

Don't overestimate market rents. This is very common. Do markets rent survey; this will tell you how much the house will rent for. The rents listed in the paper may not be accurate.

Don't overestimate "as is" value. A lot of investors forget that to turn a house in 60 days or less requires a price to be real. Be conservative in your estimate of value going in on the deal. The worst case would then be that you make more money than you thought you would.

Don't worry about unnecessary things. The first things to worry about is, why is the seller selling, is there any equity, would the property cas flow if you held onto it?

Don't skip the analysis until the deal falls apart by itself. Wishful thinking wont get money in your pockets.

Don't hide behind the analysis because your afraind to act.

Don't underestimate the time it will take to fix, flip and fill or sell. You could get stuck with holding costs if you do. Be careful.

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