In this instructional video, real‑estate veteran Joe Homs walks viewers through a rapid, 60‑second property analysis method designed for investors who need to evaluate many deals quickly. He outlines a step‑by‑step calculation using a worked example: estimate the after‑repair value (ARV) at $500,000, assume rehab costs equal to 10% of ARV ($50,000), allocate 5% for closing costs and commissions ($25,000), and set a profit goal of 10% of the purchase price ($50,000). By subtracting rehab, closing, and profit from the ARV, he derives a maximum allowable offer (MAO) of $375,000. Homs emphasizes that the profit target should be at least 10% of the purchase price and that the investor should offer well below the MAO and negotiate up to it. The video is aimed at both new and experienced investors, positioning the method as a repeatable shortcut that becomes faster with practice, and includes a call‑to‑action for further educational content and personal assistance.
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Welcome back. In today's video, I'm going to show you how to analyze a property in less than 60 seconds. When starting out on your investing career, you're going to want to work on your analyzing property skills so you can move fast and figure out if something is a deal or not. Since you're looking at hundreds of properties, the quicker you'll go through the duds And find that diamond in the rough. I've been a broker, investor, and mentor for over 40 years. I've helped hundreds of people, and I want to help you. That's why I made this channel for the new and experienced investor, those who want to create the life they've always wanted through real estate. Okay, so this is what I do. I get deals sent to me all the time, and this is just a really quick breakdown of how I analyze deals. So, first thing we want to do is we want to establish the after-repair value. Okay, and so for this case, we're going to say it's $500,000. The next thing is rehab, and the rehab number I use is 10% of the after-repair value. So in this case, it's $50,000. And then at the end of the day, you have to sell it. Closing costs and commissions, I use 5%, so that's $25,000. And out of this 5%, You're going to be paying the agent who brings a buyer in 2.5%. If you're not a list— if you're not an agent, then you're going to have to list it with somebody. Usually pay them 1%, and then closing costs are 1— sorry, 1.5% here, and then closing costs are 1%. So that should hopefully add up to 5%. So that's kind of the breakdown in the breakdown. And then we have this little box here And then at the end of the day, we have what's called the maximum allowable offer, and that's the offer that we're going to put in for this property, and we're not going to go over that amount. Okay, and so if you haven't guessed what this little box is, it's profit. Okay, and profit, I'd like to get at least 10% of the purchase price. So again, another $50,000 here. So as we subtract these numbers, so $50,000, $50,000, $100,000, $125,000, so we're at $375,000 for the maximum allowable offer. So you're going to put an offer in on this property for way less than this and negotiate up to this amount or less, because if not, you're not going to be making much money. And here's your profit. When you first start out, this may take some time, but as you do it more, the faster you'll get. And at that point, you'll be able to spot a deal by just looking at it. If you're new to investing and want to know 5 ways to ensure that you'll make a profit, click on this video right here. I break down 5 important tips that you need to know to break down to make the most profit on your next flip. Feel free to reach out anytime because I'm here to help.
