Getting Prepared - Second Commercial Project
If the first real estate project taught me one thing - it was to be prepared. You have to be ready to pull the trigger immediately when you come across a good deal. That means having everything in place so you are ready to go. See one of my previous posts that discusses what this actually means. It is also important to be able to quickly evaluate the financials of a deal to see if it is worth pursuing. Being prepared enabled me to grab a property on very short notice that ended up being very profitable and will be the focus of my next series of posts.
Developing the Real Estate Evaluation Spreadsheet
There are numerous real estate evaluation and financial spreadsheets and programs out there to help you with your real estate investments. However, I wanted to develop my own spreadsheet. I wanted to make sure I really understood how the formulas and numbers worked so I could better understand the actual financials of my deals. I didn’t want to plug my numbers into a “black box” and trust the output. I bought the book below and walked through the examples until I could write my own spreadsheet.
If you would like to buy the same book, just click on the link above. Another good book is:
Once I had my spreadsheet programmed, I was able to evaluate deals very quickly. My next post will walk through the spreadsheet I developed looking at the specific layout and why I included certain financial measurements.
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Brandon
Interesting article. I guess I will have to go back and read the first commercial investment article.
This spreadsheet sounds like a critical part of your business and I am interested in taking a look at it.
Good luck on the third deal!
Appreciate the comment. Been lax posting because I have been in the middle of trying to get a property through the permitting process. No one gives away money!