Investors, especially new real estate investors, have a difficult time determining if a property is a good investment or not. They struggle with how much to pay, how much money to spend renovating, and how to determine what the resell price will be after everything has been done. We’ve learned that a great way to teach people the “analysis process” is by showing them the numbers on a “real live deal” done successfully!
Deconstructed Deals (DD’s), “reverse engineers” a transaction so that you can learn how to do the proper analysis on properties you may be interested in buying. DD’s will help you understand what the numbers should be before you buy. Along the way you will also learn the “language” of Investment Real Estate, like the term: “renovation cost per square foot.”
Deconstructed Deals show you what, and how, deals are being done all around you. Be inspired! Get involved! Let us help you!
This property involved a conservatorship. The three daughters had to place their mom in a nursing facility and liquidate her assets including the house. It was located in Southeast Washington, DC. The property was in poor condition but the court ordered appraisal was substantially higher than what the property would sell for on the open market in its current condition. We disputed the value and got the judge to accept a cash offer of $165,000! As they say the rest is history.
Purchase Price: $165,000
Resell Price: $414,600
Net Profit: $117,000
Total Square Footage: 2246
Renovation Expense: $113,000
Renovation Cost Per Sq. Ft: $51.00
Time Frame: 4 Months
Deal Rating: $$$$$