Ep. 24 | 11 Steps to Consider When Evaluating a Real Estate Purchase
In this Legacy Series episode of The RED Podcast, Ferd Niemann shares 11 things to consider when evaluating a Real Estate deal. These 11 steps could help you find the perfect deal and makes life that little bit easier when you’re in the negotiation stage. Enjoy!
0:00 – Intro
1:12 – Step 1: Establish the geographic location in which you want to invest
2:56 – Step 2: Evaluate the size of the purchase
3:45 – Step 3: Evaluate the current occupancy, and quality of the park
4:11 – Step 4: Evaluate whether you are getting a fair and reasonable price
7:06 – Step 5: Evaluate infrastructure and utilities
8:32 – Step 6: Evaluate its bankability. Can you get a loan for the park? What is the overall risk?
9:06 – Step 7: Evaluate the market. Get a feel for the housing needs to help you with pricing.
10:18 – Step 8: Evaluate your gut feeling. Change your focus from macro to micro and find out whether you’re going to feel good about the deal
10:51 – Step 9: Begin to a detailed financial analysis on the park.
12:09 – Step 10: Draft a letter of intent. This is an offer to purchase, sets the initial terms of the deal and should be as detailed as possible.
15:20 – Step 11: Draft the contract.
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