Tommy Dobczyk compares real estate investing to dating: you need to spot red flags before committing. Run the numbers first, check comparable sales to verify land value, and break down the purchase price into land and building. A $2.6 million asking price with only $250k in land value is a pass.
Imagine real estate like dating profiles. Okay. There's a— like being able to find, like being able to find a good deal is okay, but being able to sniff out a bad deal before you get in it, way better.
Learned that marketing and pictures look amazing. And then you do the numbers and then you go, poof. And the numbers tell you what to do.
Leans into dating profiles. Imagine real estate like dating profiles. Okay. So, because when you get into real estate, it's like getting into the dating game.
Oh, like in the dating world, there's some people who are like, I can fix him.
He'll change.
So with certain deals, like for example, with this deal, is it— could it potentially be like they are just really bad business owners, but the property is valuable? Does that ever happen?
And so you got to do those numbers and let the numbers tell you what to do. Even if they're bad business owners, how long will it take you to get it? Even if you're the greatest, how long will it take you to get that from A to B? That's first thing. Second thing is, is the land actually that valuable? Like how do you understand that? And that's with comps. And so if the comps say that it's only worth a million, it's— they're asking $2.6 million, but the comps say it's only worth $250,000. And so the way to value that up is you go through everything and you say, all right, 13 buildings, it's this amount of money, land's this amount of money. And then you depreciate everything.
Bring your deals, bring all the fun things. And we're going to keep sorting through it because we literally— 1,000 deals gets us down to 100 good ones, 10 offers, and then we get to do one.
