Are You Running From Running Numbers? (+$147 free gift for you)

Your free gift if below but before I give you this $147 gift, let me explain what it is and why I made it.

Many people think that real estate investing all about getting contracts signed and selling properties but like I said in my recent post (The Naked Truth About Real Estate Investing), the more ingredients you bring to the recipe of wholesaling, the more valuable you are and the more successful you’ll be at it.

Running numbers is one advantage that seasoned investors have over the new comers. Some can walk in a property and run numbers while sipping coffee and throwing a joke or two at you but many don’t say a word. They simply focus.

Many may wonder what running numbers consists of. Well here’s the basics of running numbers.

• ARV (After repair value)
• How much can it rent for (use sites like RentOMeter.com for a good estimate)
• how much are repairs going to cost them before the property will be rent ready (very important)
• insurance estimate (I feel its best to call and get an estimate or ask other investors if there’s a percentage they go by)
• property management which is optional. This is generally 10% of the gross annual rental income.
• Maintenance (lawn, A/C, etc). This is generally around $300. How much do your think on average it would cost to maintain a property?
• closing costs (can be estimated by calling a title company; once you do a few deals, you’ll have a general idea of how much these can cost)
• Knowing the cap rate and the ROI is important

After you get all the expenses, you now have an estimate of the annual operating expenses.

This can then be subtracted from the gross annual rental income. You now have how much net profit this savvy investor will be able to pocket each year and happily buy more properties from you.

Now with the net annual rental income you can go on to see what the cap rape is and what the ROI (return on investment) is.

Cap rate is the ratio between the net operating income produced by a property and its capital cost or in regular everyday talk, the original price paid to buy the property. or alternatively its current market value. The rate is calculated in a simple fashion as follows:

How long before I get my money back?

ROI is how many years is it going to take dor them to get their money back. 5 years may seem like a long time at 20% but when banks are paying 3% tops, its the best investment since Google.

Now the hardest part about running numbers is writing them down or just getting to where you can do them without thinking really.

Now for my $147 free gift to you!

Well I decided to spend a few hours putting together something that will make running numbers a heck of a lot easier. This is version 1.0 of what I like to call “Running Number$“. I charge almost $70 an hour to build blogs so being that it took me about 2 hours to complete this, this is a $147 gift that I’m giving to you when you sign up to my site.

No longer will you run from running numbers. Most of the boxes fill in automatically when you fill in simple details like how much you want to sell this property for. You’ll automagically get the cap rate, the ROI and a since of relief when you have the numbers right in front of you.

Don’t sign up if……

If your already subscribed to DennisKnows.com, then you should have received an email with a link to download this one of a kind tool. If your not subscribed yet, what are you waiting for. When I release the updated version to the public as software, it will be $197 but all of my subscribers will get the beta version and have a chance to play around with it… FOR FREE…

That’s going to be over $100,000 in potential profits I’m giving away all because I appreciate my subbies.. Wanna be one?

Get this $147 tool for FREE when you sign up

Tagged As: calculating numbers, cap rate, capitalization rate, dennis marshall, dennisknows, how do I run numbers, how to flip houses, real estate investing, running numbers