Jerry was recently asked by a Mastermind attendee: Could you share the step by step process that you go through when looking at a property and analysing it as a deal?
We have recorded some previous episodes about different elements of deal analysis but never pulled it all together before.
In this episode Jerry covers the following pieces of the puzzle:
- Step 1: Ask yourself, “What is wrong with the property?” Or what can I do to make it work better?
- Step 2: Establish the vendors, current, acceptable price point
- Step 3: Check out the competition for a Price comparison and an indication of local demand.
- Step 4: Can I increase the rental rate above the existing or the current market level?
- Step 5: What can I do to increase the net lettable area? Improve efficiency in the layout.
- Step 6: What are the Operational Costs going to be? And what can I do to lower existing costs
- Step 7: The redevelopment costs
- Step 8: Offer and agree Heads of terms
- Step 9: Pay some fees.
- Step 10: Find the money and get the deal done
Jerry takes you through the step-by-step process he generally uses. It will vary project by project and of course it is not a binary process, where he might complete one step and then start the next. Some of this will be running simultaneously.
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