NOT ANY PORT IN A STORM: HOW TO FIND THE BEST PROPERTIES IN THE BEST AREAS
All it takes to be successful is doing the extra 10% others aren’t willing to do.
—Don R. Campbell
THE PROPERTY ANALYSIS PYRAMID
As Richard and I sat in the boardroom, I brought out the next step of the ACRE system—the Property Analysis Pyramid. On the boardroom table sat a model of an Egyptian pyramid, which I had placed in the middle of the table so that Richard could see it clearly.
“Richard, before I send you out into the cold harsh market, I’m going to arm you with some very important criteria for buying real estate, along with a few more checklists to keep you on track. I call this section of the ACRE system the Property Analysis Pyramid. As you can see in this model, a pyramid is built on a strong and wide foundation. Without this foundation, the pyramids in Egypt, for example, would have toppled long ago.
“In our Property Analysis Pyramid, the strong foundation is the Property Goldmine Score Card. On top of this, we add layers of due diligence and investigation; each layer is designed to filter out the poor properties and to leave us only with the best.”
“Let’s get on with it,” Richard said, calculator and pen at the ready.
“All right. The rest of tonight’s discussion revolves around the elements of time and money, both of which must be measured and valued in order for you to become an overachieving investor.”
I began with an explanation of what comprises positive cash flow. This set the stage ...