Sales evaluation program for Real Estate

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i'm going to give you three tips how i evaluate property in minutes multi-family property should not take that long to evaluate and if you're spending too much time trying to figure it out and you don't know what the heck it's worth it's so simple i'm gonna break it down for you right now you're gonna have a couple different ways to figure it out you should you should be evaluating these things streamlining them if you're going through and there's a ton of deals you don't know which one makes sense there should be a method there should be a quicker way of figuring this stuff out unfortunately not a lot of people are sharing this information the first one i'm going to tell you is expense ratios every single property every asset class everything has expense ratios so a multi-family property you're looking at 45 maybe 60 percent that's the average use 50 percent as your average this is a quick evaluation you want to see if this property is worth your time if it has less if it has 40 percent it's probably a class a property and if you're buying class a property you're not watching me right now you're doing something else class a property is not the average buyer the average b and c property is about 50 that's kind of what you're going to be using so you're going to take that expense ratio you're going to do some quick math if there's 20 units everybody's paying a thousand dollars a month that means every month you're making 20 000 you're you're gonna take that twenty thousand dollars you're gonna multiply it by twelve very very simple here we're at two forty you're going to take fifty percent right off the top i don't care about the details right now we're we're just trying to get to does this make sense you're going to take your net number which is 120 000 and depending on what market you're in you're gonna see if that return is worth your time is this property worth going to the next step if you're in oklahoma city oklahoma then it's a 10 cap that's different than being in los angeles california with like a four cap so that part is really dependent on where you are i'm in florida obviously six to eight is kind of the average so it really depends on where you are the second way is obviously software there are so many deal analyzer software's out there they're all terrible i've tried all of them they're all this big fancy spreadsheet and it takes you forever to plug in all the numbers and everything like that and everybody comes up with a different calculation every single time they're they're terrible no matter who you want to use they're all bad the one i use now is the analyst pro as far as i can tell that is the best software on the market it's kind of pricey um i think it's about 400 bucks i'll see if i can get you guys something awesome for it uh work a deal out with the owner and the guy who made it is a ccim guy and he gets it and it's just streamlines it and i actually use it to present packages to investors so it's easy to read easy understand remember i'm looking at a property for my clients as i would as an investor so it has to be easy to understand the third way i evaluate property without even trying i do this in about a minute you take whatever expense sheet you get the income and expense statement the trailing 12 whatever you have and you forward the email to your banker or your broker and you let them tell you what it's worth and that works wonders because if somebody's trying to sell their property for three million dollars and the bank is only giving you 2.7 million that property isn't worth 3 million dollars it doesn't matter don't even waste your time go somewhere else get these deals and look at them unless somebody's doing a 1031 exchange or something else cash but you don't want to mess with that because you don't want to overpay for property you're going to take your sheet send it to your banker look for the next deal you got you should be looking at deals you should not be spending hours evaluating this stuff my first deal took me two hours to evaluate and i still didn't even know what i was doing uh it should be much much quicker this is the easiest way everything else you've been doing is really wasting a lot of time so your first step just to recap you're going to call whatever property you have whatever information you have you're going to get that income and expense statement you're going to try the expense ratio method that i told you you're going to take 50 whatever their numbers are you want to use the gross number so use the gross rents and take it off of that your second one is you're going to use software you could use whatever software you want let's see if i can get you a deal on the software i use personally and then the third way is you're going to go through your your broker your banker whoever gets your loan doesn't matter that person will tell you what they can get for you and that should be a real kick butt strategy you guys could use streamline your deals i hope that was helpful thank you