Chapter 12Deal Evaluation System Stage 2The Desktop Evaluation

I have failed over and over again in my life and that is why I succeed.

—Michael Jordan

Stage 1 of the deal evaluation system lets you know if you’re fishing in the right lake. By the end of Stage 2 of the deal evaluation system—the desktop evaluation—you’ll be able to tell whether the fish at the end of your line is a keeper, or if you’re better off throwing it back.

In the second stage of the system, you begin to appraise the after-repair value of your potential property, and you start the due-diligence process. You eliminate a lot of leads at this stage, and that saves you time in the long run.

On the other hand, if a property survives this stage of the process, it has the potential to be a serious deal. Follow these nine steps to complete Stage 2 of the deal evaluation process.

STEP 1: CONFIRM THE PROPERTY DETAILS BY REVIEWING THE PROPERTY CARD

Before you start researching comparable sales of like-type properties you must confirm the information the seller, agent, or third party gave you about the property by pulling a property card. Property cards are the city’s records of information about a property associated with a single deed. That deed typically represents ownership of a parcel of land and all of its improvements. Typically, property cards include some or all of the following information:

  • Transaction sale price history of the property
  • Assessed values
  • Ownership history
  • Land use, zoning approvals, and ...

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