How To Properly Examine Investment Proposals?

How To Properly Examine Investment Proposals?

How To Properly Examine Investment Proposals?

 

# Initiated weekPost # 6

Examination of investment.

Before you go into an investment you will examine your offer through these five highlights.

1. Invest in an amount that you feel comfortable with.
Do not stretch your limits because of an investment opportunity because it seems to you that there will not be any more.
There will be more.
And if not, then others. Businesses do pleasantly, not under pressure. And this investment was for all intents and purposes.

2. Do not invest because of shiny numbers.
Numbers are just the beginning of the transaction analysis, when I get a deal (Flip) for examination I ask three gold numbers.
Kenya
Expected renovation
Expected sale
If I have a margin of 30% profit I go into a more in-depth examination.

And yet in every investment there is a risk, you have to understand what it is and accept it as part of the deal.

3. The entrepreneur is the most important part of the deal.
If you do not feel good in the stomach with the entrepreneur do not go for the transaction even any data and numbers work.

The experienced investor understands the investment and the entrepreneur's line of thought and agrees with him in his judgment and his decision-making.

A good entrepreneur can maximize a medium deal for the better
While a mediocre entrepreneur can ruin a good deal.

4. You will learn the market and the asset you are investing in and choose it as if you are the entrepreneur yourself.
This will reduce the chance that the transaction will fail, and if it fails you will have something to learn

5. Keep a wide profit margin.
For example, a flip deal in which you invest $ 50,000

And plans to sell at $ 70,000

Is more risky than a deal you buy on 140,000 $ and sell at $ 200,000.

The first has 40% profit,

While in the second only 30%,

The problem is that a slight blow to the wing, like the addition of 5,000 $ for the renovation more than planned, and one 30% of the profit was deleted, while the second less than 10%
(Those numbers do not work out for me, it's because I lowered closing costs from the sale price)

6. Bonus
An entrepreneur friend told me “your first offer is the best offer for you”
At the exit of the Flip deal, all we are interested in is getting rid of the property and meeting with the money.
Of course, within the limits of logic, the thing with Flips is not being greydes, there's a suggestion, it's less than what we planned but profitable enough.

You have a suggestion that you are considering and want to consult and my phone is open for you for free and with love

In the picture, Flip's deal next week ends its renovation and viewers sell it at 180,000-200,000 $
She sits on us $ 125,000.
Wish us luck in the sale

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