Is It Really All About the Numbers? How RECFH Real Estate Entrepreneurs Approach Deal Analysis!

I can't tell you how many times people have asked me if I would participate or help with a great real estate deal they know of or heard about.

The quick and easy answer is usually always - I'll take a look at anything if the numbers work!

This statement is most definitely true but there is a lot to consider when ascertaining what actually makes the numbers work.

When we approach a potential cash flow project we must ask ourselves four questions;

1). Is this deal appropriate for the current market conditions (phase of the business cycle)?

If it's not, we must adjust the numbers accordingly - to offset the added risk.

2). What is the spread?

The spread is the difference between the asking price and after repair value (ARV). Most times the person bringing the deal to the table either doesn't know the spread or their calculations are off the mark. We ALWAYS verify or run our own numbers!

3). Who are the member types that will benefit the most from participating in this particular cash flow project?

We have the unique advantage of having access to all the resources we need within the RECFH membership base. In cases, where we don't have one or more of the ideal member types within our membership base, it's our job to go about the business of inviting such members to our Inner Circle. 

4). How can we structure this project with optimal risk and profit potential for all partied involved?

Now, this is where the rubber meets the road.

The RECFH Collaborators depend on the RECFH Real Estate Entrepreneurs to provide and structure cash flow projects with optimal risk & maximized profit potential.

Needless to say, our efforts to improve our skills in this area are never-ending! We are, in large part, deal architects and financial engineers.

So don't ever forget the true value that you, as a Real Estate Entrepreneur, bring to the table!

Good Hunting!