squall74
New Contributor
I'm reading a lot of books and articles online, and had some questions regarding making offers to a potential property. As every property is strictly a business transaction (Will it cashflow, and is it worth the time and money invested), I would have to value every deal and make offers based on what the property is really worth.
This might be very general but I look at the potential rent, operating expenses, and add in a return percentage that makes financial sense. So on a 4plex bringing in $2,800 ($700/unit) less operating expenses of about 50% (conservative) would be $1,400 per month. Do I then multiply the yearly return ($16,800) and multiply that by that by the preferable rate (lets say 10%) to come to an offer of $168k? Would this matter over COCR?
Also my next question is how do you make a bunch of these offers? Is it possible to work out a deal on each property I am interested in and submit offers to every potential deal? Should I work with a realtor on my end? If I do and make 100's of offers based on my financial analysis will they still work with me? It seems like the realtor won't want to spend time with a tire kicker but I can only acquire properties if the deal works. I know that properties listed with realtors usually won't mean motivated sellers but I am looking to expand my numbers as much as possible to locate deals.
This might be very general but I look at the potential rent, operating expenses, and add in a return percentage that makes financial sense. So on a 4plex bringing in $2,800 ($700/unit) less operating expenses of about 50% (conservative) would be $1,400 per month. Do I then multiply the yearly return ($16,800) and multiply that by that by the preferable rate (lets say 10%) to come to an offer of $168k? Would this matter over COCR?
Also my next question is how do you make a bunch of these offers? Is it possible to work out a deal on each property I am interested in and submit offers to every potential deal? Should I work with a realtor on my end? If I do and make 100's of offers based on my financial analysis will they still work with me? It seems like the realtor won't want to spend time with a tire kicker but I can only acquire properties if the deal works. I know that properties listed with realtors usually won't mean motivated sellers but I am looking to expand my numbers as much as possible to locate deals.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
