Episode 61: How to do deal analysis and mitigate risk in real estate

How do you know if a property is a good deal?

 

How do investors decide on their maximum offer on a property? What factors are they looking at and considering?

 

We know in the time of Covid, we are told to buy properties because it’s a good time to invest since it’s a buyers market. So we thought it would be great to help first-time investors understand the numbers. 

 

In this episode, we teach you how to analyze a deal and walk you through a case study of a deal that looks great on the outside but when we dig a little deeper, the numbers tell a different story. We explore ways to make the deal more lucrative.

 

Dr Miranda walks us through a multi-family deal - 7 bachelor units with an asking price of R580,000 (US$37,440) and cash flowing at R7,700 (US$496) a month.

 

We look at the profitability of the deal, the Return on Investment and some of the risks that are embedded in this deal.

 

We also explore ways in which we can mitigate risk in our investments during this time.

 

So get your pen and papers out and click play, because you are in for a treat.

 

Special thanks to Dr Miranda (our co-host) for walking us through this case study. You can sign up for her property mentorship at this link: https://propdocmom.com/