Top 10 Mistakes Real Estate Investors Make Brandon Turner VP @ BP - - PowerPoint PPT Presentation

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Top 10 Mistakes Real Estate Investors Make Brandon Turner VP @ BP - - PowerPoint PPT Presentation

Top 10 Mistakes Real Estate Investors Make Brandon Turner VP @ BP Twitter: @brandonatbp Get todays worksheet at www.BiggerPockets.com/1021Worksheet Thanks! (you rock!) Get todays worksheet at www.BiggerPockets.com/1021Worksheet What


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Top 10 Mistakes Real Estate Investors Make

Brandon Turner

VP @ BP Twitter: @brandonatbp Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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Thanks!

(you rock!)

Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 3

What We’ll Be Talking About Today:

Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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What We’ll Be Talking About Today:

  • The Three Rules of BP Webinars
Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 5

What We’ll Be Talking About Today:

  • The Three Rules of BP Webinars
  • About BP / About Me
Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 6

What We’ll Be Talking About Today:

  • The Three Rules of BP Webinars
  • About BP / About Me
  • The Truth About Mistakes
Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 7

What We’ll Be Talking About Today:

  • The Three Rules of BP Webinars
  • About BP / About Me
  • The Truth About Mistakes
  • 10 Biggest Real Estate Investing

Mistakes

Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 8

What We’ll Be Talking About Today:

  • The Three Rules of BP Webinars
  • About BP / About Me
  • The Truth About Mistakes
  • 10 Biggest Real Estate Investing

Mistakes

  • Deal Analysis
Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 9

What We’ll Be Talking About Today:

  • The Three Rules of BP Webinars
  • About BP / About Me
  • The Truth About Mistakes
  • 10 Biggest Real Estate Investing

Mistakes

  • Deal Analysis
  • Pro Benefits
Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 10

What We’ll Be Talking About Today:

  • The Three Rules of BP Webinars
  • About BP / About Me
  • The Truth About Mistakes
  • 10 Biggest Real Estate Investing

Mistakes

  • Deal Analysis
  • Pro Benefits
  • Q&A
Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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Today’s Worksheet:

Get today’s worksheet at www.BiggerPockets.com/1021Worksheet
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SLIDE 12

Free Gift:

www.BiggerPockets.com/books

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Free Gifts (later):

www.BiggerPockets.com/______ www.BiggerPockets.com/______

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The Three Rules

  • f BP Webinars
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The Three Rules

  • f BP Webinars
  • You Must Commit to Taking

Action within 24 Hours.


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The Three Rules

  • f BP Webinars
  • You Must Commit to Taking

Action within 24 Hours.


  • Focus…Focus…Focus!

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The Three Rules

  • f BP Webinars
  • You Must Commit to Taking

Action within 24 Hours.


  • Focus…Focus…Focus!

  • Get Involved!
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About BiggerPockets

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“The Real Estate Investing Social Network, Marketplace, and Information Hub.”

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Blog Forums Member Blogs Podcast Live Webinars Webinar Replays Videos Books Meetups Conference (Summit) Conference Audio

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About Me

(Brandon Turner)

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Brandon Turner

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Brandon Turner

  • VP at BP
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Brandon Turner

  • VP at BP
  • Real Estate Investor
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Brandon Turner

  • VP at BP
  • Real Estate Investor
  • Author of “The Book on

Investing in Real Estate with No (and Low) Money Down”

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Brandon Turner

  • VP at BP
  • Real Estate Investor
  • Author of “The Book on

Investing in Real Estate with No (and Low) Money Down”

  • My dog often wears

pajamas

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Brandon Turner

  • VP at BP
  • Real Estate Investor
  • Author of “The Book on

Investing in Real Estate with No (and Low) Money Down”

  • My dog often wears

pajamas

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The Truth About Mistakes

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Top 10 Mistakes Real Estate Investors Make

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1.) Let Fear Stop Them

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1.) Let Fear Stop Them

  • Fear of Loss
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1.) Let Fear Stop Them

  • Fear of Loss
  • Fear of the Unknown
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1.) Let Fear Stop Them

  • Fear of Loss
  • Fear of the Unknown
  • Fear of What Other’s Might Think
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1.) Let Fear Stop Them

The Solution:


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1.) Let Fear Stop Them

The Solution:


  • Start moving.
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1.) Let Fear Stop Them

The Solution:


  • Start moving.
  • You are the average of

the 5 people you associate with the most.

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1.) Let Fear Stop Them

The Solution:


  • Start moving.
  • You are the average of

the 5 people you associate with the most.

  • Gain a solid eduction.
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1.) Let Fear Stop Them

–Dale Carnegie

“"Inaction breeds doubt and fear. Action breeds confidence and

  • courage. If you want to conquer

fear, do not sit home and think about it. Go out and get busy.”

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2.) They Don’t Learn Enough

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2.) They Don’t Learn Enough

The Problem: 


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2.) They Don’t Learn Enough

The Problem: 


  • Jump in before they

are ready

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2.) They Don’t Learn Enough

The Problem: 


  • Jump in before they

are ready

  • Arrogance - “I don’t

need to learn"

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2.) They Don’t Learn Enough

The Problem: 


  • Jump in before they

are ready

  • Arrogance - “I don’t

need to learn"

  • The lie of “I don’t

have time.”

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2.) They Don’t Learn Enough

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2.) They Don’t Learn Enough

The Solution: 


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2.) They Don’t Learn Enough

The Solution: 


  • There are 168 hours in a week.
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2.) They Don’t Learn Enough

The Solution: 


  • There are 168 hours in a week.
  • This is why Podcasts are so
  • powerful. Listen while driving,

cooking, bathing, etc.

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2.) They Don’t Learn Enough

The Solution: 


  • There are 168 hours in a week.
  • This is why Podcasts are so
  • powerful. Listen while driving,

cooking, bathing, etc.

  • Don’t try to learn everything.

Focus on the strategy you want to pursue.

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2.) They Don’t Learn Enough

"The expectations of life depend upon diligence; the mechanic that would perfect his work must first sharpen his tools." 
 


  • Confucius
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3.) Pay Tens of Thousands

  • f Dollars for Education
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3.) Pay Tens of Thousands

  • f Dollars for Education

The Problem: 


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3.) Pay Tens of Thousands

  • f Dollars for Education

The Problem: 


  • Gurus /Late Night TV

Salesmen

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3.) Pay Tens of Thousands

  • f Dollars for Education

The Problem: 


  • Gurus /Late Night TV

Salesmen

  • Use money they could

have used for deals

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3.) Pay Tens of Thousands

  • f Dollars for Education

The Problem: 


  • Gurus /Late Night TV

Salesmen

  • Use money they could

have used for deals

  • Recycled Information
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3.) Pay Tens of Thousands

  • f Dollars for Education

The Solution: 


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3.) Pay Tens of Thousands

  • f Dollars for Education

The Solution: 


  • Get your education

for Free!

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3.) Pay Tens of Thousands

  • f Dollars for Education

The Solution: 


  • Get your education

for Free!

  • Information has been

democratized!

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3.) Pay Tens of Thousands

  • f Dollars for Education

The Solution: 


  • Get your education

for Free!

  • Information has been

democratized!

Books, Podcasts, Forums, 
 Mentors, YouTube… BIGGERPOCKETS

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3.) Pay Tens of Thousands

  • f Dollars for Education

"Never confuse motion with action.”

  • Benjamin Franklin
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4.) Try to Do It Alone

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4.) Trying to Do It Alone

The Problem: 


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4.) Trying to Do It Alone

The Problem: 


  • “I can do it myself”

syndrome

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4.) Trying to Do It Alone

The Problem: 


  • “I can do it myself”

syndrome

  • Not knowing where to

find help

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4.) Trying to Do It Alone

The Problem: 


  • “I can do it myself”

syndrome

  • Not knowing where to

find help

  • Lack of focus because

they are trying to do everything

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4.) Trying to Do It Alone

The Solution: 


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4.) Trying to Do It Alone

The Solution: 


  • Build relationships
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4.) Trying to Do It Alone

The Solution: 


  • Build relationships
  • Network
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4.) Trying to Do It Alone

The Solution: 


  • Build relationships
  • Network
  • Trust others to help
  • Build a BUSINESS… not

a hobby.

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4.) Trying to Do It Alone

"Talent wins games, but teamwork and intelligence wins championships.” 
 


  • Michael Jordan
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5.) Hire the Wrong Contractor

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5.) Hire the Wrong Contractor

The Problem: 


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5.) Hire the Wrong Contractor

The Problem: 


  • Can’t find a good contractor
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5.) Hire the Wrong Contractor

The Problem: 


  • Can’t find a good contractor
  • Contractor doesn’t show up or

finish on time

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5.) Hire the Wrong Contractor

The Problem: 


  • Can’t find a good contractor
  • Contractor doesn’t show up or

finish on time

  • Contractor does poor work
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5.) Hire the Wrong Contractor

The Solution: 


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5.) Hire the Wrong Contractor

The Solution: 


  • Get serious about finding the BEST

contractor (this should not be an afterthought.)

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5.) Hire the Wrong Contractor

The Solution: 


  • Get serious about finding the BEST

contractor (this should not be an afterthought.)

  • Be willing to pay more for the

RIGHT person

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5.) Hire the Wrong Contractor

The Solution: 


  • Get serious about finding the BEST

contractor (this should not be an afterthought.)

  • Be willing to pay more for the

RIGHT person

  • Do your due diligence on any

prospective contractor

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5.) Hire the Wrong Contractor

“If you think hiring professionals is expensive, try hiring amateurs” 
 


  • Anonymous
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6.) Buying a Property Because It’s “Cheap”

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6.) Buying a Property Because It’s “Cheap”

The Problem: 


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6.) Buying a Property Because It’s “Cheap”

The Problem: 


  • They Think Cheap = Good Deal
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6.) Buying a Property Because It’s “Cheap”

The Problem: 


  • They Think Cheap = Good Deal
  • Detroit! :)
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6.) Buying a Property Because It’s “Cheap”

The Problem: 


  • They Think Cheap = Good Deal
  • Detroit! :)
  • The Hell House
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6.) Buying a Property Because It’s “Cheap”

The Solution: 


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6.) Buying a Property Because It’s “Cheap”

The Solution: 


  • Location Matters
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6.) Buying a Property Because It’s “Cheap”

The Solution: 


  • Location Matters
  • Ask “Why is it cheap?” What

does the price say about the neighborhood, property condition,etc.

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6.) Buying a Property Because It’s “Cheap”

The Solution: 


  • Location Matters
  • Ask “Why is it cheap?” What

does the price say about the neighborhood, property condition,etc.

  • Buy for value, not just price.
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6.) Buying a Property Because It’s “Cheap”

"Focus less on the price today and more on the cost over the next decade.” 
 


  • Zig Ziglar
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7.) Let Lack of Money Stop Them

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7.) Let Lack of Money Stop Them

The Problem: 


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7.) Let Lack of Money Stop Them

The Problem: 


  • “I can’t afford it.”
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7.) Let Lack of Money Stop Them

The Problem: 


  • “I can’t afford it.”
  • They shut off their brain
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7.) Let Lack of Money Stop Them

The Problem: 


  • “I can’t afford it.”
  • They shut off their brain
  • Turn on the TV
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7.) Let Lack of Money Stop Them

The Solution: 


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7.) Let Lack of Money Stop Them

The Solution: 


  • Change your “I can’t” to a question:

“How can I?”

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7.) Let Lack of Money Stop Them

The Solution: 


  • Change your “I can’t” to a question:

“How can I?”

  • Think creatively
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7.) Let Lack of Money Stop Them

The Solution: 


  • Change your “I can’t” to a question:

“How can I?”

  • Think creatively
  • Partnerships, low-down loans, house

hacking, hard money loans, etc.

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7.) Let Lack of Money Stop Them

The Solution: 


  • Change your “I can’t” to a question:

“How can I?”

  • Think creatively
  • Partnerships, low-down loans, house

hacking, hard money loans, etc.

  • The Book on Investing in Real Estate

with No (and Low) Money Down…

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7.) Let Lack of Money Stop Them

“Think left and think right and think low and think high. Oh, the thinks you can think up if only you try” 
 
 – Dr. Seuss

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8.) They Don’t Give Back

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8.) They Don’t Give Back

The Problem: 


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8.) They Don’t Give Back

The Problem: 


  • They get too busy
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8.) They Don’t Give Back

The Problem: 


  • They get too busy
  • They think helping others will slow

them down

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8.) They Don’t Give Back

The Problem: 


  • They get too busy
  • They think helping others will slow

them down

  • They don't see "What's in it for

them."

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8.) They Don’t Give Back

The Solution: 


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8.) They Don’t Give Back

The Solution: 


  • Mentor someone
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8.) They Don’t Give Back

The Solution: 


  • Mentor someone
  • Answer questions in the Forums or

welcome new members to BiggerPockets

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8.) They Don’t Give Back

The Solution: 


  • Mentor someone
  • Answer questions in the Forums or

welcome new members to BiggerPockets

  • By giving… they GET. Find

partners, money, etc this way.

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8.) They Don’t Give Back

“You can have everything in life you want, if you will just help other people get what they want.”

  • Zig Ziglar
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9.) Don’t Analyze Deals at All

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9.) Don’t Analyze Deals at All

The Solution: 


  • Commit to spending the

time needed to fully understand the deal

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9.) Don’t Analyze Deals at All

The Solution: 


  • Commit to spending the

time needed to fully understand the deal

  • Never trust a Pro Forma

(sales document)

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9.) Don’t Analyze Deals at All

The Solution: 


  • Commit to spending the

time needed to fully understand the deal

  • Never trust a Pro Forma

(sales document)

  • Do an in-depth analysis!
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9.) Don’t Analyze Deals at All

"I never dreamed about success, I worked for it.” 
 


  • - Estee Lauder
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10.) Don’t Analyze Deals Correctly

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10.) Don’t Analyze Deals Correctly

The Problem: 


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10.) Don’t Analyze Deals Correctly

The Problem: 


  • Don’t accurately know

income/expenses

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10.) Don’t Analyze Deals Correctly

The Problem: 


  • Don’t accurately know

income/expenses

  • Use “emotional math”
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10.) Don’t Analyze Deals Correctly

The Problem: 


  • Don’t accurately know

income/expenses

  • Use “emotional math”
  • Forget important metrics...

which can throw all the numbers off.

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10.) Don’t Analyze Deals Correctly

The Solution: 


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10.) Don’t Analyze Deals Correctly

The Solution: 


  • Seek to understand all the numbers
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10.) Don’t Analyze Deals Correctly

The Solution: 


  • Seek to understand all the numbers
  • Take the time needed to analyze
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10.) Don’t Analyze Deals Correctly

The Solution: 


  • Seek to understand all the numbers
  • Take the time needed to analyze
  • Ask for help on the BP Forums
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10.) Don’t Analyze Deals Correctly

The Solution: 


  • Seek to understand all the numbers
  • Take the time needed to analyze
  • Ask for help on the BP Forums
  • The BP Analysis Software
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10.) Don’t Analyze Deals Correctly

“Without the right math going into a deal, you’ll never get the right profit coming out of it.”

  • Brandon Turner
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The BiggerPockets Property Analysis Software

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SLIDE 131

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