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Module 7 of 14

Property Evaluation & Due Diligence

Master fast property analysis to avoid bad deals. Learn to identify title issues, liens, structural concerns, and calculate accurate repair costs and exit values

Module Progress 100% Complete
Module 7 Training Video

Property Evaluation & Due Diligence

Master the art of fast property analysis

35:42
Duration
HD
Quality
Completed

What You'll Learn in This Module

Master property evaluation and due diligence to avoid costly mistakes and identify profitable opportunities.

Fast Deal Analysis

Learn to quickly screen properties using Google Street View and local comps to avoid wasting time on bad deals.

Title Issues & Liens

Identify and navigate title issues, liens, and legal complications that can derail your investment.

Repair Cost Calculations

Calculate accurate repair costs with proper buffers and determine realistic exit values for profitable investments.

Local Market Analysis

Leverage local Realtors and market data to understand neighborhood trends and property values.

Fast Deal Analysis

Screen properties in minutes, not hours

🔍 Analysis Tools

  • Google Street View for neighborhood assessment
  • Local MLS data for comparable properties
  • Property tax records and assessment data
  • Crime statistics and school ratings

⚡ Quick Screening

The 5-Minute Rule: If you can't determine profitability within 5 minutes, it's likely not a good deal.

  • • Check neighborhood condition via Street View
  • • Compare tax assessed value to asking price
  • • Review 3-5 recent comparable sales
  • • Estimate repair costs at 25-30% of ARV

Title Issues & Liens

Identify and navigate legal complications

🚩 Common Red Flags

  • Tax liens and unpaid assessments
  • Mechanic's liens from contractors
  • Judgment liens from lawsuits
  • IRS and state tax liens

✅ Due Diligence Checklist

  • Order title search through title company
  • Review property tax records for liens
  • Check county clerk records for judgments
  • Verify no outstanding HOA fees

Repair Cost Calculations

Accurate budgeting for profitable investments

💰 Cost Categories

Structural Repairs

Foundation, roofing, HVAC systems

Cosmetic Updates

Paint, flooring, fixtures, appliances

Permit & Labor

Permits, contractor fees, project management

📊 Buffer Strategy

Scott's Rule: Always add 25-30% buffer to estimated repair costs

Estimated repairs: $15,000
25% buffer: $3,750
Total budget: $18,750

Scott's Pro Tips

Expert insights for successful property evaluation

🎯 The 70% Rule

Never pay more than 70% of ARV minus repair costs. This ensures adequate profit margin and protects against market fluctuations.

🔍 Trust but Verify

Always get multiple contractor estimates and add your buffer. What looks like a $10k job often becomes $15k in reality.

Module 7 Complete! 🎉

You've mastered property evaluation and due diligence. You now know how to quickly screen properties, identify title issues, calculate repair costs with buffers, and determine profitable investment opportunities.

Continue to Module 8