Comments on: Financial Analysis of the Deal: A Real Estate Investor's Most Important Skill?

By: sonia@sell house fast

sonia@sell house fast — Thu, 15 Apr 2010 11:07:49 +0000

Wow, an excellent and a VERY concise breakdown of how to number crunch a property investment deal. I think you will find, most people overlook this important step and like to stick to the "back of the envelope" numbers approach, which often proves risky. I'm bookmarking this

By: Cory@invest in a business

Cory@invest in a business — Thu, 04 Feb 2010 16:24:59 +0000

Excel and financial computations are such important tools when evaluating investments. This information is invaluable.

By: Nick@Free Annual Credit Report Com

Nick@Free Annual Credit Report Com — Tue, 03 Mar 2009 01:18:18 +0000

Thank you for providing such an in-depth look at investing. Rarely do people analyze figures like you did which helps tremendously.

Your post just furthers my own conviction that we can't just act on "feelings" alone. Drilling down into the nitty gritty of finance is so much a must.

By: Tony@Etf List.

Tony@Etf List. — Fri, 05 Dec 2008 00:56:23 +0000

Nice post. I think you covered almost all of it. Most people never look at all the numbers or do not want to. You have to make sure your getting into something that can and should make you money before you buy any real estate.

By: marc@intelligence hypothecaire

marc@intelligence hypothecaire — Sun, 16 Nov 2008 22:36:42 +0000

I'm having a hard time with excel at the moment. Your post has helped shed some light on a couple of issues. Thanks very much.

By: Savings accounts

Savings accounts — Fri, 26 Sep 2008 10:34:32 +0000

Hey Scott,

Thanks for sharing.The major problem with investors is the lack of drilling deep down to make more meaningful insights with data. I like the layout of the spreadsheet, can I have a sample? One can use this to build expenditures on savings on spend too

By: Ned Carey

Ned Carey — Sat, 17 May 2008 20:09:20 +0000

I think your comment about building your own spreedsheet is valid. Simply plugging numbers into a spreedsheet doesn't mean you understand those numbers or understand the answer.

There are some simple formulas in this business but unless you understand why the formula works, and more importantly, WHEN IT DOESN'T, you are really just guessing.

Ned

By: Scott Roemermann

Scott Roemermann — Tue, 13 May 2008 17:47:44 +0000

Agreed that not enough investors analyze the numbers – it amazes me that people (even beginners) would invest in property on instinct, because they like the property, they think it will appreciate, or for any other reason – but it happens every day. That's what inspired me to write this one.

By: ideal 4 investors

ideal 4 investors — Tue, 13 May 2008 17:42:39 +0000

Thanks Scott for a terrific article. Too many investors don't go to the trouble to analyze the numbers.

By: Jonathan Kinard

Jonathan Kinard — Tue, 13 May 2008 02:31:18 +0000

Great article, I really agree with you. Research and analysis of the deal is the most important weapon in the bag of a successful real estate investor.