The 3 Stress Tests Every Real Estate Deal Must Survive

Welcome back to Radical Wealth Plan, hosted by Paul Mark Morris and brought to you by Entrepreneur Media. In this episode, I sit down with Joey Sacavitch to break down how to analyze a real estate deal in under 20 minutes—using a clear, repeatable framework that strips out optimism and forces reality into the numbers. We walk through the three stress tests every deal must survive, why relying on appreciation is a mistake, and how value-add investing protects you when rates shift or markets turn. If you want a practical way to spot bad deals before they cost you real money, this episode gives you the exact lens I use.

*Joey Sacavitch*

Instagram: https://www.instagram.com/joeysnacks/?hl=en

Website: https://kw.com/de/agent/Joey-Sacavitch/120372

*Connect with Paul*

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YouTube: https://www.youtube.com/@radicalwealthplan

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Presented by Entrepreneur Media & Money News Network

Entrepreneur Media: https://www.entrepreneur.com/podcasts

Money News Network: https://www.moneynewsnetwork.com

Timestamps

00:00:00 Introduction to Radical Wealth Plan

00:01:28 Key Elements of a Good Deal

00:02:03 Stress Testing Deals

00:03:54 Importance of Value Add in Real Estate

00:10:41 Calculating Gross Rent and Vacancy Rates

00:13:32 Operating Expenses and Debt Service

00:17:22 Starting with a Million-Dollar Investment

00:18:17 Comparing Different Investment Strategies

00:19:11 Handling Market Shifts and Property Value

00:20:57 Stress Tests for Real Estate Investments

00:23:28 Expense Shock Test and Due Diligence

00:26:36 Planning for Future Expenses

00:29:44 Rate and Refinance Stress Test

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