Analyze Any Property Fast

Let's explain exactly how much profit you should allow whether you are buying a fixer upper or buying a property that is already rented or ready to rent or sell. There are different ways to analyze a deal, you can purchase software you can design or purchase spread sheets to calculate your rate of return. No matter what system you use you need to know what numbers to enter to get the correct calculations. Here are a few rules of thumb.

If you need a calculator, then it�' probably not a deal. If you can look at a deal, knowing the after repaired value, the repair cost and how much they are asking then should be able to tell whether or not its worth pursuing. If the numbers are so close that you have to figure it out on a calculator then you should probably skip this deal after making your low ball offer of course.

Your first few deals should be home runs. That is your critical stage in your investing career. It will make you stay in our or get out.

The next rule of thumb is, if you have to ask if it's a good deal, then it's probably not. You should have at least read some books, been to a few seminars, listened to a teleconference or training audio or something. You basically know what to do for the most part. You can tell whether it's a deal or not, so if you have to ask someone, then it probably isn't.

If you are looking at a fixer upper then you don't want to have more than 70 percent after repaired value invested and this includes the purchase price, repair cost and closing cost. Keeping a margin of 30 percent insures that when you are finished making the repairs, after closing cost you will still have 30 percent equity.

If you are looking at an "instant landlord" property then you can pay a little more than 70% of value. After all there are no repairs to do on your part. The rule is not to pay anymore than 80% of value and maybe 85% of value if the cash flow is good and there is good possibility of appreciation.

People have used a simple calculator for years to figure what to offer while on the phone but with having several people in my office that work all day making offers and buying property for me, if you can get a top notch programmer to design a simple, easy to use computer program to use in the office to help buyers make the calculations very fast and accurate. It could allow for 10 - 15 purchases a month.

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