It just seems to me that people keep missing the point. The question isn’t “Is that a good deal?” The question is “Where else could I put my money and would that be more or less profitable?”
When it comes to real estate investing people are constantly asking me (after I’ve shown them a property) “Is this a good deal?”
“I don’t know.”
Now, I’m really not trying to be flippant. In fact, I’m trying to make you think. After all, what is a good deal for you may not be a good deal for the very next guy discussing the very same property. Why?
- Different criteria.
- Different job incomes.
- Different credit scores.
- Differing ability to take advantage of passive loss.
- Different down payments.
Get the picture?
I am not advising here the infamous real estate investing technique of “paralysis by analysis.” I am saying that you need to know what’s on the market and how each of those properties would be expected to perform in order for you to answer the question “Is this a good deal?” about any one particular investment property.
BBQ Capital | Kansas City Real Estate Investing 