Real estate is gaining more and more media attention recently. With that attention more and more people become interested in buying real estate. One question that stands out over and over again from potential buyers is, “what should I buy?” So many buyers know they want to be involved, that they want a piece of the action and that they have the ability to purchase real estate right now. However, many don’t know where to start or what to buy.
For me the answer is all about the numbers. There are lots of numbers to consider. There is the square footage, year, rent, bedrooms, short term gains or long term gains or mortgage costs, taxes, fees, cash flow or best disposition price or the highest gross margin return and many, many more. Each investor is different with different goals and there is no right or wrong way to decide those goals or better or worse number that hold emphasis for those investors.
The right or important things is that the investors have those numbers that are important to them at their fingertips when making a decision. This is an easy way for the investors to make an accurate and confident decision rather then hanging there investment on a hunch or a wing and a prayer. Would be investors should take this into account when they are working with an agent. What numbers are they giving you? What value are they adding to the deal or is it the same old song and dance, “the price is so cheap how can you go wrong” or, “if you don’t buy it some one else will”. Don’t get pressured into a rash decision. Make sure that the person presenting the buying opportunity is competent enough to deliver all the numbers as well.
One of the best presentations of these numbers I have seen is the DSC (debt service coverage) Sheet provided by Brewer Caldwell. It encompasses all these numbers, and more. Giving the buyer the ability to make an educated decision on real information and numbers. Not just an emotional whim. It’s amazing how different a decision some one will make once they see all the details. They may realize that amazing deal is not really all it’s cracked up to be and pass on that “golden” opportunity. Or they may take that diamond in the rough deal that they are not sure about and realize that it really is a precious jewel.
The key is having the accurate numbers and all of the numbers needed to make that decision. Do your research and verify that that your representative has your best investments in mind. Last of all ask for the numbers and see what you get. Do you get a phrase and a story or to you get the facts? You deserve the accurate DSC Sheets to make the best decision you can.
