Editing 1course Real Estate (section)

==== Analyzing Deals ====
Once you’ve identified a promising market, the next step is to analyze potential deals. Here’s how to do it:

# '''Determining Property Value:'''
#* '''Comparable Sales (Comps):''' Identify recently sold properties similar to the one you’re evaluating. Look at size, condition, location, and sale price to determine a fair market value.
#* '''After Repair Value (ARV):''' Calculate the property’s value after necessary repairs and renovations. This is crucial for understanding the potential profit margin.
# '''Assessing Market Demand:'''
#* '''Days on Market (DOM):''' Check how long properties in the area typically stay on the market. Shorter DOM indicates higher demand and a more liquid market.
#* '''Buyer Interest:''' Gauge the level of interest from potential buyers by monitoring online listings and attending open houses.
# '''Calculating Potential Profit:'''
#* '''Estimate Repair Costs:''' Work with contractors or use online tools to estimate the cost of necessary repairs and renovations.
#* '''Profit Margin:''' Calculate your potential profit by subtracting the purchase price, repair costs, and assignment fee from the ARV. Ensure the deal provides a sufficient profit margin to make it worthwhile.