Analyze Before, During, and After Purchase
The most successful investors know: What gets measured gets attention, and, it is this attention to financial performance that helps investors maximize returns. Conducting a comprehensive and accurate financial performance analysis of real estate is THE most important tool in the most successful investor's toolbox. The best investment decisions are never made on a single "isolated factor" like Capitalization Rate.
When do successful investors analyze financial performance?
- They analyze property performance before purchase to...
- help identify and sort out properties based on their specific needs and long term goals
- identify hidden financial potential that can be tapped into after the purchase
- help better understand the current marketplace and neighborhoods
- limit the impact of possible buyer "fudging" of the numbers making it look better than it really is
- They analyze property performance during the purchase process to…
- apply new income and expense data compiled while viewing the property
- apply new income and expense data based on compiled documents (IRS Schedule E and written leases)
- constantly compare the "true" performance a property to other properties available for purchase
- structure the basis for a re-negotiation of price, terms, and conditions of the contract
- They analyze property performance after purchase to…
- understand how the property is currently performing
- compare the current financial performance between this property and other holdings
- maximize returns selling off the lowest of performers and replace or add higher performers
- identify issues that are robbing them of bottom line profits- and then take action to eliminate those issues
What types of properties should I analyze?
You should analyze the financial performance for ANY property that you would consider purchasing for its income producing potential. Some of the most common property types are:
- Single family units (homes, condos, townhomes)
- 2-4 multi-family unit building
- 5-500+ unit apartment complexes
- Mobile home parks
- Self storage facilities
- Commercial retail (anchor stores, strip malls, shopping centers, etc.)
- Commercial office space / or buildings
As there are hundreds of factors that effect a property's financial performance, you will want to make sure that you are using analysis tools that can handle all of the unique factors for your property type. All REIA Reports versions were created and designed to be the most accurate, comprehensive, and flexible financial performance analytical tool available.
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- Call us at 724-368-3650 to schedule a convenient time to discuss your real estate investment analysis needs and learn how we can help you make more money in less time when investing in real estate through research and analysis.
- Fill out our easy to use on-line inquiry form: How can we help you?
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