How To Know If You're Overpaying For a Real Estate Deal (3 Checks)

[@BreakIntoCRE]

For the CRE vets out there, any mistakes you commonly see that I missed?

[@diegomorales9910]

Valuing leaseup deals is usually tough and ripe for mistakes, understanding expenses and other income line items is usually tough since there are many unknowns.

[@BreakIntoCRE]

@@diegomorales9910 Agreed completely - tough to get clear without historical data. Thanks for the comment!

[@jamesschultz5731]

Growing property taxes at a preset rate (2-3% for example) doesn’t always reflect market. Multi taxes in Tampa are growing as fast as 6%!

[@philbrusk9643]

Number 2 is huge! I have seen RE taxes kill huge deals once a buyer actually understands what is likely to happen to their taxes after the purchase instead of assuming that taxes will remain the same. OH and PA are two states where you absolutely want to make sure you understand the tax consequences after purchase.

[@BreakIntoCRE]

Thanks, Phil! Agreed on OH and PA - definitely two states I had in mind when talking about this in the video. Thanks for the feedback!

[@jordiortega4436]

Very, very interesting episode, Justin. Digging your proforma spreadsheet. Thank you!

[@SterlingWhiteRealEstate]

Great points on pitfalls people make when evaluating deals. Best to learn from others to avoid making the same mistakes

[@bvm935]

Thank you so much, Justin! Video is very helpful 👍

[@keatonyellin1295]

Thanks for another killer video Conner! Ur a role model of mine 100% i’m a Junior at SC and have learned so much from u over the years.

[@adamfreedman7499]

I thought that the exit cap rate should usually be lower than the beginning cap rate in any property valuation. I’m assuming there is no to little rent growth.

[@Planetgreenzen]

Thanks as always brother. I am in the Phoenix market and some properties are double priced, based on what they underwrite at.

[@BreakIntoCRE]

Crazy - Phoenix is on fire right now. Thanks for the feedback!

[@Planetgreenzen]

@@BreakIntoCRE Yes sir, thank you.

[@DaZ403]

Do you factor opportunity costs into a deal structure when looking at various deals at one time?

[@connorfrancis6022]

Great video, very helpful!

[@janicelai5632]

good tips! thanks!

[@BitcoinMoonBoys]

Anytips for residential buying? 1-4 units?