How to Analyze Real Estate Investment Deals

Hey, we got an email from Sue R. in Arlington, TX that I wanted to share with ya.

Here’s what she said, “Hi Patrick, I’m newer to real estate investing but have been taking a lot of action. I’m starting to come across properties that I think are good deals but am not sure exactly how to analyze them. Can you help?

This is a common question, so we decided to make this “Deal Analyzing Week.”

Analyzing Real Estate Investment Deals

In today’s tutorial, I go over 3 things you must know in order to properly analyze a deal. Enjoy!

Toss your thoughts and questions in the comment area.

Happy Investing!

– Patrick

P.S. – Later this week, one of our faculty members (who specializes in deal analysis) is going to show you exactly how he analyzes his deals… AND show you a free tool you can grab that does most of the work for you. Something to look forward to 🙂

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10 Hour Wholesaler


  1. Good stuff Patrick. Thanks for taking the time to do these videos. I’m just starting out and have criteria and formulas in place but it’s good to hear an experienced investor validate what I’m doing. Keep ’em coming!

    • Hey Chad, you’re welcome man. I’ll keep ’em coming!

      – Patrick

  2. Great info. Patrick. Can’t wait for the deal analysis tool at the end of the week.
    I’m always looking for ways to make investing easier.

    • John, yeah I’m with you… always looking for ways to make things easier. Be on the lookout for the deal analysis tool soon.

      – Patrick

  3. Good stuff. I like the niche fact, keep in what you know until you get 10k/ month is what my coach told me and thats what im dooin!

    P-Rid you rock!

    • That’s a great suggestion from your coach. It’s so important to define your niche, become an expert, then move on to other areas of investing.

      – Patrick

  4. Another great video and free advise. Thanks my friend! Hope all has been well and look forward to seeing u guys soon.

    • Yo, what’s up Justin? You’re welcome.

      You still need to make it up here to Charleston sometime. You’ll love it!

      – Patrick

  5. Hey guys how are you? I’m just starting off and I’m a little scared, but I have a question. Should I first get an LLC before I start doing anything. I’m going to start mailing seller leads and then buyer leads, but I’m hesitant because I don’t have an LLC attached to my name. And if I want to start asking private lenders to lend me money, what would they said?


    J Manny Rocha

    • Hey, it’s ok to be a little scared when you’re getting started. That’s healthy… as long as it doesn’t immobilize you.

      This is not to be considered legal advice… but I would suggest just getting started even if you don’t have an LLC in place. There are a lot of investors who buy all their property in their personal name and don’t have a company set up (although I don’t advise that).

      When talking to a potential private lender, let them know that they’re lending money based on a property… and that they will be secured with a mortgage or deed of trust (depending on your state). The lender should be most concerned about their lending position, not the name you plan on buying the property in (whether it’s an LLC, or personal name, or trust, etc).

      – Patrick

  6. Good video Patrick! I look forward to upcoming videos.
    You cleared up an internal argument for me (yes, I argue with myself) about becoming an expert in your niche before expanding.

    Another thing that helped was leveraging your team. Good advice! As a new wholesaler w/o direct access to MLS and w/o rehabbing experience I face two hurdles 1) determining ARV and 2) determining cost of repairs. I am putting pieces of the newbie wholesaling puzzle together and what you say reinforces what I am learning from other people,


    • Glad you enjoyed the video Melinda. Thanks for pointing out specifically what helped you. If I can help with any questions, let me know.

      – Patrick

  7. EH Patrick, my interest and goal is to generate quick cash for now, I think to succeed in this I need Bank REO, BUT TO FLIP I need to buy the house first before I can turn it over to my investors, the bank is asking for downpayment which I cannot afford, pls can u show me the way forward

  8. Exuding wisdom as always. This is great foundational stuff. When in doubt always come back to the fundamentals.

    • Hey Wil, thanks man. Appreciate it 🙂

      Yep, the fundamentals are what it’s all about.

      – Patrick

  9. Thank you for all the work you do for us newbies, and not-so-newbies.
    You are one of the very few “gurus” that actually bother to read comments in your blog and RESPOND to them.
    Please, keep up the great work!

    • You’re welcome J. Will do man!

      – Patrick

  10. Patrick,
    Thanks for the great lesson on deciding what to do and not do so many niches in the beginning and sticking to it until you become the expert.
    Now, as I can appreciate what you said about getting comps and repair costs; it seems that most Realtors, inspectors, contractors, and the others you mentioned, do not want to do all this work for free.
    I understand that we have to build that relationship with them in order to ‘get them to do it’; however, how can we be confident in this and relay to them that we’re real when we’re first starting out and have no deals under our belt? I say this b/c there are so many REOs out there it is A LOT of work to go through all of them and analyze them. It just seems impossible to get these people to do this on so many deals. Maybe the REOs are not the way to go. What do you think?
    Thanks, again, and I’m looking forward to seeing/using the Deal Analyzer Software from Daniil.

  11. Great info Patrick! I love the videos.
    Find your niche! I struggled with that and made no forward movement, b/c I was all over the place. I’m focused now on wholesaling and moving forward now!

    I’m still trying to figure out how to get repair costs. I’m networking to make connections, but not sure what’s in it for the construction person to give me an estimate (multiple times) and never use him (if I’m selling to a rehabber who has their own people). But I’m working on it!

    Got cash buyers lined up and starting to get leads coming in. I’m so excited. You, JP Moses and Preston Ely have really helped push me.

    Thank you!

    P.S. While I was writing this, just got a call with a potential lead and connection with Fanny Mae to get their local properties as soon as he obtains them!
    Thanks a million man! I look forward to learning more from you! Have a great weekend!

  12. Another great video and free advise

  13. patrick that was 65% or below mv you want to sell to your buyer depending on the deal/terms/price

    also thank you for all the information you send my way every bit helps so much please keep those emails coming
    good health to you and your family

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