What’s the difference between a good deal and a great deal? It all boils down to coming up with the best Win/Win deal! In coming up with that deal, it’s not enough to make sure the product turns out great. It’s also important to make sure the profits for you (and your investors) are GREAT! At the end, neither you, your clients, nor your investors should have to compromise. But the real question is: HOW? How do I come up with the BEST deal possible? When should I consider a “lipstick” flip; and what about push/pull strategies? More importantly, what are objective measures to consider when coming up with the Best Deal possible? We believe that beyond the many considerations when it comes to making business and investment decisions, especially in Real Estate, what stands out the most is Analysis. Data will always be there. What you do with that data is what matters! And in order to yield Win/Win, there’s a need to leverage Analysis Tools. You can’t analyze deals at the back of a napkin… These tools turn data into easily digestible information, making sure no data skips your attention, allowing you to arrive at a highly educated business decision. Once you do have your spreadsheets, you want to be looking at them during crucial moments. Take a look before you make the offer, again at 2 weeks from closing the deal, and again after getting your rehab analysis. You always want to be looking at what you forecasted and what’s actually happening. Are your costs going up and your profits, plummeting? It’s important to make a side-by-side comparison of your costs (purchase, rehab, miscellaneous, etc.) versus your estimated profits. This is how you learn to get sharper with your deals. “Analysis tools, data, benchmarks, cost and profit figures? Sounds too much to digest!” Better than just telling you about these, we’re going to SHOW YOU how to effectively use a Quick Offer Deal Analyzer, to ensure MAXIMUM Profits! End of the day, what you need to learn is how to look at deals in multiple ways so that you can come up with multiple exit strategies, and ultimately, choose the best route – the deal that Maximizes Profits! Now, we know we raised more questions that answers…And that’s you should check out this Case Study and learn the steps to making great deals. Let’s see if we can’t answer all your questions! Tune in to learn more about the hottest and most relevant information on real estate investing! Thank you all for listening and I will see you on the next episode. When you are ready head on over to https://billyalvaro.com or go grab your tools to help you at https://billyssecrets.com
What’s the difference between a good deal and a great deal?
It all boils down to coming up with the best Win/Win deal!
In coming up with that deal, it’s not enough to make sure the product turns out great. It’s also important to make sure the profits for you (and your investors) are GREAT! At the end, neither you, your clients, nor your investors should have to compromise.
But the real question is: HOW?
How do I come up with the BEST deal possible? When should I consider a “lipstick” flip; and what about push/pull strategies? More importantly, what are objective measures to consider when coming up with the Best Deal possible?
We believe that beyond the many considerations when it comes to making business and investment decisions, especially in Real Estate, what stands out the most is Analysis.
Data will always be there. What you do with that data is what matters! And in order to yield Win/Win, there’s a need to leverage Analysis Tools. You can’t analyze deals at the back of a napkin…
These tools turn data into easily digestible information, making sure no data skips your attention, allowing you to arrive at a highly educated business decision.
Once you do have your spreadsheets, you want to be looking at them during crucial moments. Take a look before you make the offer, again at 2 weeks from closing the deal, and again after getting your rehab analysis.
You always want to be looking at what you forecasted and what’s actually happening. Are your costs going up and your profits, plummeting? It’s important to make a side-by-side comparison of your costs (purchase, rehab, miscellaneous, etc.) versus your estimated profits. This is how you learn to get sharper with your deals.
“Analysis tools, data, benchmarks, cost and profit figures? Sounds too much to digest!”
Better than just telling you about these, we’re going to SHOW YOU how to effectively use a Quick Offer Deal Analyzer, to ensure MAXIMUM Profits!
End of the day, what you need to learn is how to look at deals in multiple ways so that you can come up with multiple exit strategies, and ultimately, choose the best route – the deal that Maximizes Profits!
Now, we know we raised more questions that answers…And that’s you should check out this Case Study and learn the steps to making great deals.
Let’s see if we can’t answer all your questions!
Tune in to learn more about the hottest and most relevant information on real estate investing!
Thank you all for listening and I will see you on the next episode. When you are ready head on over to https://billyalvaro.com or go grab your tools to help you at https://billyssecrets.com
[00:00:00] BILLY: Welcome back to another episode of unstoppable REI wealth. This is episode 59 with your host, Billy. Alvaro the unstoppable BA Today I'm doing a solo cast. We're going to be talking about doing your numbers on a quick off a deal analyzer. And we're going to do a case study on a property that we bought and flipped in north Babylon. We're going to go over why we did the rehab that we did. We're going to compare three different quick offer, deal, analyzes, and show you the amount of profit that we made, which was a little bit less than $85,000. With a small $35,000 renovation. This property could have gone one of multiple. We'll get explained to you why we did it the way we did it, how much money we made and what the outcome was, which I just actually told you. So enjoy the episode.
[00:00:45] Welcome to unstoppable real estate investing wealth. My name is Billy Alvaro, AKA the unstoppable VA former billion dollar mortgage banker gone bankrupt turned professional real estate investor where each week you'll learn the tools, [00:01:00] strategies, systems, and secrets myself and other highly successful real estate investing entrepreneurs use to start, grow and scale [00:01:00] their businesses, creating massive profits and how you can too. And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started.
[00:01:24] What is going on, everybody. Welcome back to the episode of unsolvable area wealth. I'm your host, Billy Alvaro I'm here today with a solo cast. I am going to be going over ideal. I'm going to go over a quick deal analysis, and I'm going to give you a case study for a property that my team found. They came up with the analysis. I'm going to show you today, how to go about analyzing your deals and maximize your profit. Now, this is important. There's a lot of people out there who want to renovate every single home that they bought. Renovate it to the, uh, taken out for the studs, re got the whole thing and put it back the other end. Sometimes that way works because [00:02:00] you'll make more money. We'll put out a great product. Other times it warrants to actually renovate the property and do either a lipstick or a really small push and pull. So today we're going to do, if you're listening, you're probably going to miss a lot of this. I want you to really watch this. If you go to YouTube or go to my, uh, to my website, you'll be able to catch this, this one, go to YouTube. Unstoppable REI wealth. So what I'm gonna do, so I'm going to show you a property that we picked up in. Uh, this one was in, uh, This one was in Bayshore. No, this was in North Babylon there's a north Babylon property. So this north Babylon property. Oh, let me go through and I'm going to show you why we renovated the way we did and how much money we ended up making for. If we would have renovated the whole thing and not really good at it, but really done a, uh, more of a, an extensive renovation. So on this property, let me show you some pictures here. I'm going to pull up the file folder. So this was 22 white in north babylon was, let me just show you the [00:03:00] house, uh, and you know what I'm going to do. I'm actually going to share my screen because I'm talking to you guys. Like you can see it and you can't. So let me show you. Let me come in here and do a little share screening action. I mean, put down this one, hit share. It's going to pop up this and now I'm going to move this bad boy over. And we are going to a rock and roll with this one right here. Let me see if that works. Uh, perfect. Perfect. Okay. So here's the deal guys. I mean, pop this out. This is the profit we picked up. Now, if you look at the deal itself, let me pop this open. The house overall was not in bad condition, right? I mean, it doesn't look like a bad house. The outside of the. It's a little beat up. You can see it, right? Little dirty, little like 80 ish with a, with a window over here and the blinds and those shitty ass floors and that kitchen. So initially when our, uh, acquisition managers went out for this property, I'm going to show you [00:04:00] three quick over DIY's. Cause they look, they said we can do a renovation, pulling out the floors, doing the kitchen, um, doing the bathrooms, painting the whole nine yards. And with that, the renovation costs, I think this bathroom is actually, yeah. Right. The renovation costs will be between 70 and $90,000. And so when they brought the deal in my sales manager, Justin, he said, Hey, let's take a look at this. I just want to make sure on the right path on maximizing the profits, because look, it's not just about putting out a good product for an end buyer at the pickup. It's also about maximizing the profits on the deal. So you have to have an equal balance between the two. So you're getting an idea of what this property looks like. Look, they weren't hoarders, but they were definitely sloppy to say the least. They had a lot of crap all over the house. And, uh, the house overall bone wise was, was very good. Right? So we had options for this part. So here's the garage. They actually had an illegal apartment in the garage. They ripped out and, uh, they have some fines in the town. There was some [00:05:00] issues with electric throughout the whole house. There was some issues with decking and, uh, you know, the place was, it definitely needed some work. So there was a couple of options. We could have a, taken a property, cleaned it out and not done anything to it, put it on the market we would have, and this was shot to the burner. We would have potentially made like $30,000 so we could whole sell it and we potentially would have made in the wholesale side. Um, so we would've made like 40,000. If we just would've put it in the market, would've made like 25 or 30, if we would have wholesale that. And let me get you over here. So you can. These quick go for deal analyzers. So here's the first one that they did. So the guy went out through the property. He did his first analysis, which was right here. He came up with an ARV of 500, $800,000 with a profit of 80 grand. He put in $70,000 on the rehab. So you can see here, we have our buying costs, 13 rent. We have the rehab costs of $70,000 and we have the taxes estimated the, if we were going to get permits with the permit cost going to be, that was actually a little. Uh, actually that's [00:06:00] insurance, the $2,000 right here. And then we had $1,500 for the, uh, for the utilities, the debt service on this one, he had a little high, he showed that we were paying 12% cause we averaged six months in this. So six and six as well. And two points, we actually get our money about 7.4, 9% at one point. So he was high in this. And second money that is, if I put money in myself in these deals, I pay myself back return or if we get private money from somebody else. So all the fees, everything is in this quick over deal, analyzer to show you that when you're analyzing a property, you want to look at buying costs right here, repair costs, right? You're carrying costs, your points, your fees, everything is inside of the thing. And then you're selling costs. So it rolls down and shows going to make any grand. Then what he did is he came over cause he's, he's knows what he's doing. And he said, look, if we don't do all that work and we kind of just lipstick it at a $35,000 renovation, what's the profit going to look like. So there's not a huge difference in the profit 20 grand or 20 grand. Right? So for a $20,000 difference, it [00:07:00] might make sense. To do this. I came in and I looked at this property, I'm going to show you the repair cost analysis sheet. And they did, uh, let's see, this is me. Yeah. This is me right here. So you're gonna see a huge discount, you know, $525,000, but I want you to focus on one number two numbers. If we put in $25,000 on this property, don't gut renovate, renovated. I want to go in and I just want to redo the floors paint it clean up the kitchen, fix anything that's not mortgageable and clean the crap out of this house. And of course redo the garage. We had to do the barter system. It actually cost us a little bit more than 25 when we get into the real numbers in a second. But for a $25,000 renovation, we have the potential. Of making $99,000. So looking at all the deals that were on the market and this, I think this property sold about three, four months ago. We bought it back in October. So when we first analyzed, these are the comps as is comps, anywhere from 49 to 5 [00:08:00] 25 renovated comms were anywhere from, and I'm talking not a great renovation, not a rehab, but like a homeowner renovation, five 40 all the way up to about 600,000. Right in between there. And so when I looked at this property, I said, why would I want to go in and put 70,000 or $80,000, maybe $90,000. Cause you don't know what would happen to, to repair for us. All the material calls went up. Why would I want to put that much money in and have it take longer to get done with the renovation side and potentially have more issues with the property? Why don't we just go in and lipstick it and see if we can get this return? So let me show you what we actually got out of this product. Let me stop sharing my screen for a second. Let me get out of this. I'm going to show you something because this is important. This is how we manage our business, right? So this is Podio. So I got to open up another link technology I'm used to interviewing people, not doing any Solo fucking cast. This is crazy. So let me come over here for a [00:09:00] second and let me open this up. Boom. Well, let me show you our system. When the deal got done and closed. What the number is actually shook out to look like. So it's important when you're doing renovations or when you flip the properties, look at your analysis sheet or front you quick over deal analyzers. Look at them when you first make the. Look at them two weeks before, you're going to close to see if anything shifted. Look at them after you get your rehab analysis back, like you always want to be looking at what you forecasted versus what's actually happening. And then at the end, you want to do a side-by-side comparison of what you estimated your bike costs were going to be. Your rehab costs are going to be your resale value and ultimately your profit and loss. How you, or what you did or you could've done differently on you quick over deal analyzer. This is how you learn, right? This is how you build your understanding of how to get sharper when you deal. So let me share this screen so you guys can see, okay, so here's Podio. This is the PNL. So Podio. So all of our deals, obviously they're in QuickBooks, but we have a commission engine and then a little bit of an engine built inside Podio to actually [00:10:00] calculate everything. So we can see here, the property is now. It was a rehab flip right here. This was more than me at this company. It's showing here that the bookkeeper did everything. She had to do this. I want to get down to the Newport stuff. Okay. So here's the purchase price of 3 53, 500. That's what we bought for. We had buying costs of $20,000. We had rehab course. You can see here, they came up a little bit from 25 to 37,684. Now why did they come up? There was a few more things that popped up once we started doing the. We said there were selves, you know what? We can't leave the bird of the way. There's the brightest shot. We can't leave some of the floors way. The, where the floors were shot. There was something wrong with the roof. So we ended up putting a little bit more money in that we wanted to look at the, the end numbers here. The carrying costs, this includes the private money fees was $24,000. We ended up selling the property. Exactly what I thought for that. I forecasted in my Creek over the land, wiser, the initial two, I think it was, we can pull it back. I think it was six. Uh, so this one was [00:11:00] 5 59. This is the one that the manager did. He had a 5 59 resale with a $65,000 profit with $70,000 of repairs. That's the manager and the gentleman who would help to the field get out of 5 89, $80,000. With the 3 53 purchase. And on this one lipstick, he had a 60,000 non-profits let's look at what we actually did. We got this profit to come in at $84,590. That's after we paid all of our costs, overhaul money over buying cost overselling cost all the rehab was end the project management fee. So for $35,000, I think it was 35,000 for $35,000, $37,000 renovation. We ended up pulling in a little under $85,000. So the reason I'm sharing this case study with you is a couple of things. You can't analyze an a P on the back of a napkin. You should have some sort of a spreadsheet that you're utilizing. I built this one out. It's very simple. It's an easy calculation. You literally only have to put in like three or four numbers. It automatically [00:12:00] calculates what the office should be with. The profit should be. So number one, make sure you're utilizing a quick one for deal. Analyzer sheet number two. When you're going out to these properties, you have to look not with blinders on. You have to have a broad range view of what you're looking for. You want to go in and figure out how not to only put out a good product, but how to maximize your profits on these deals. And you do that by looking at. Rehab. If you do a full fledged full gut rehab of this property, what is it going to yield on the open market? And what is it going to take you to get that property to that 2022 code and standards? And what's the profit going to be? So you have a pain in the ass fee. You have a time on evaluation. You have a bunch of different things you have to go through, especially to getting permits. How much time is that going to hold you up? Time-wise for holding this deal? What is that going to add to your holding costs? What is it going to do to your bottom number? Look at that. If you're making a substantial amount and this is the deal pays off, which we do a lot of full gut renovations, then by all means, go [00:13:00] all in on that, but make sure you analyze, if you do it as. Clean out, put it back in the market. What are the prop? What's your profit gonna look like there? Or if you do a somewhat of a lipstick type deal where you're not just putting lipstick on a pig, you're doing a good product. I'm going to show you some of the, if you want to go online and you can take a look at the property, the end result as I don't want to take five minutes to log in the MLS. The end result, this property came out mint and we ended up making little, a little under $85,000. Uh, simply because we analyze the deal multiple different ways, multiple different hedging strategies. We came with the one that we thought was good for us, ended up not even having to put it in the market. The deal sold like within three days of it being done. So bottom line, we want to make offers. You want to go out there and make some deals happen. If you're not wholesaling and you're fixing and flipping, look at your various exit strategies well on the level of rehab that you going to do the petty for the area and on paying the SPS, you have to calculate in and put out a good product if you're going to rehab. But also [00:14:00] look at the money, the bottom line investment, the returns you are expected to make, especially if you bring in investors into a partners, you want to make sure they're making money. You're making money, put a great product. All right, guys, this was a quick one. It was 15 minutes in and out podcasting away. Um, we are, um, love loving doing these things. I hope you guys getting value. Make sure you follow me on Instagram, on Facebook, on LinkedIn. Like check out these episodes. Give me a couple of thumbs up also on podcasts and you can find this on at the apple podcast and all the regular podcasting things. And that's it, I want you guys to have a great day and I will see you on the next one Adios guys.
[00:14:40] Thank you so much for listening to today's episode of unstoppable real estate investing wealth. My mission is to give you my listeners, the blueprint for success inside the secrets for starting growing and scaling. Real estate investing business, So you could experience and live unstoppable lifestyle. I've [00:15:00] made it simple for you to catapult yourself to success. Go to Billys secrets dot com@billyssecrets.com. There you will find every single tool. Trick strategy system. And you used to make millions of dollars as real estate. Everything my team uses and my guest views all in one place for you to [00:36:00] tap into, you could start, grow and scale the real estate investment business. I really hope you implement what you're learning. I hope you utilize these tools, tips, tricks, strategies, and secrets, and I hope to see you on the next episode god bless. Bye-bye.