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by Richard Odessey
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oo high, or your cashflow was too low, or your profit over the life of the deal wasn't enough, you'd want to think of solutions.
This is what is meant by being a "transaction engineer". Find the solution, fix the problem, test it on the numbers, and then negotiate it into the deal.
And if you can't find a solution (but there always is one) or the seller won't accept it-NEXT!
I can tell you from real experience, a bad or risky deal is NEVER WORTH DOING-no matter how enticing the vision. The personal stress, heartache, and loss of confidence can be even more harmless than the potential financial loss. In the words of an ex-president's wife, if you are faced with doing a bad deal-Just say No!
What's the Answer?
Some experienced investors have a feel for good deals, and can avoid trouble most of the time. Others only do a particular type of deal and use a rough "rule of thumb" to evaluate their risk and profit.
However, what's really needed is a "calculator" or computer program that will take in all the variables and
ÜCalculate the exact profit and cashflow for all kinds of deals.
ÜMeasure and Evaluate the financial risk in the deal
ÜUse standard and safe criteria for what constitutes a good deal
ÜSuggests alternatives to fix what is wrong
The Deal Evaluation Tool
We've taken tons of real estate courses and looked at all kinds of real estate software, and nothing has come close to what we as investors need. So we decided to create our own Deal Evaluation Tool .
Well after several months of testing and im |
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