How to Analyze a Flip in 5 Steps | Real Estate Underwriting 101

If you don’t know how to analyze a flip, you’re not alone. There are many factors that come into play when deciding whether or not a deal is worth pursuing, especially if you’re on a time crunch.
Today, James Dainard from Heaton Dainard Real Estate has been given a lead from a wholesaler. The contingency? Only 24 hours to decide whether or not he’s in or out of the deal. It’s a perfect excuse for James to show new investors how to underwrite and analyze a real estate deal. This five step process doesn’t take a ton of time and can help any flipper or BRRRR-er decide quickly if they have a deal on their hands.
James’ most important piece of advice in this episode: know your comps and know your area. The more you understand why people are paying the price they’re paying for local comps, the better you can design a house to fit the price point and secure an above-market offer!
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00:00 Underwriting 101
00:40 Property Info
01:13 1. Pull Tax Records
01:50 2. Pull Comps
03:48 Comparable Homes
06:25 3. Do a Walk Through
13:10 4. Drive The Comparables
13:54 5. Calculate Your Flip Pro Formula
15:02 Underwrite Your Contract As Well!

Пікірлер: 121

  • @Dreadpiratetrucker
    @Dreadpiratetrucker2 жыл бұрын

    Wow I like this guy. You can tell he knows his stuff

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Appreciate that!

  • @ProjectRE
    @ProjectRE2 жыл бұрын

    I hope you all enjoy this episode!! 💪 It was such a blast filming this one!

  • @yournursingneighbor

    @yournursingneighbor

    2 жыл бұрын

    PLEASE tell me you plan on doing an update episode! Can't wait to see how this turns out! What a cool property.

  • @CynthiaCole

    @CynthiaCole

    2 жыл бұрын

    Can’t wait to see updates on this project!

  • @bigdope9578

    @bigdope9578

    2 жыл бұрын

    They need to do more like this!!! ASAP!!

  • @michaelkaylor6770

    @michaelkaylor6770

    2 жыл бұрын

    Thanks for showing a more matured business's look at property!

  • @bldfinancial

    @bldfinancial

    2 жыл бұрын

    Absolutely! Lots of insights taken away from this video!

  • @by9diz8
    @by9diz82 жыл бұрын

    Practical tips are so rare these days. This was great 🙌

  • @DisruptorsPodcast

    @DisruptorsPodcast

    2 жыл бұрын

    Agreed. happy to find this video

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thank you! Means a lot 💪

  • @josiahamaze
    @josiahamaze9 ай бұрын

    This is an amazing video. I looked for a no bul straightforward thorough explanation of someone trustworthy process. Thanks for the info.

  • @2Blessed2Stress.
    @2Blessed2Stress. Жыл бұрын

    Thank you for doing this video. Mr. D provided details and a lot of gold nuggets. ❤❤

  • @nickludwiczak1166
    @nickludwiczak11662 жыл бұрын

    Thanks! Great walk through of the process! I would like to see more like this.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thanks nick!

  • @CynthiaCole
    @CynthiaCole2 жыл бұрын

    Such an informative video!! Please keep us posted with updates!

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thank you!

  • @jpablo7879
    @jpablo78792 жыл бұрын

    Nice breakdown and step by step description. Thank you

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    My pleasure! Thanks for watching 😇

  • @Mustach_Mike10
    @Mustach_Mike102 жыл бұрын

    love it man just followed🙌

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thanks mike!

  • @christianlane2307
    @christianlane23072 жыл бұрын

    Awesome info!!! Definitely do a follow-up once it's done.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Will post it on project re! Stay tuned!

  • @dgmm7437
    @dgmm74375 ай бұрын

    Thank you so much!! Thank you thank you, you cleared up a few things w just this video, definitely subscribing😣 It’s so scary to think about WHAT YOURE GETTING INTO but thanks to people like you we get the courage to risk it for the biscuit😭😭🫶🏼 I’m gonna flip houses guys, mark my work ima be financially stable once I get rolling, FLIPP VIDEOSS COMING SOON❤️🙏🏽

  • @aldiaz5140
    @aldiaz51402 жыл бұрын

    This was very helpful, thanks for this!!! 🔥🔥🔥

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thanks Al! Stay tuned for more content 😇

  • @ca3713
    @ca37132 жыл бұрын

    Dan, your explanation on investment property’s is very good.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    My brother is Danny but thanks! 😛

  • @bryanscibilia1245
    @bryanscibilia12452 жыл бұрын

    Nice job James! Good luck with this one

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Appreciate it Bryan!

  • @thiagocarvalho2513
    @thiagocarvalho2513 Жыл бұрын

    Great video! Would love an update on this project (not sure if one was posted already).

  • @sunsettreasurehunters2085
    @sunsettreasurehunters20852 жыл бұрын

    Awesome quick analysis. Thanks.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thanks for watching! 👊

  • @ArtisticallyAspiring
    @ArtisticallyAspiring2 жыл бұрын

    I love this series. I hope he returns to bigger pockets. This is so educational.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thank you so much! Appreciate it a lot 🙏🙏🙏

  • @DisruptorsPodcast

    @DisruptorsPodcast

    2 жыл бұрын

    Same I'm going to watch all the series now!

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    @@DisruptorsPodcast 👊👊

  • @KB-gx5bs
    @KB-gx5bs2 жыл бұрын

    Please come back and show us the property when it is all done! Also curious as to what you are doing with the barn? I am assuming it is going to remain an equestrian property? What about the pastures, paddocks, etc? Fun video! Love the MCM fireplace too.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Will do!

  • @JOMOPressureWash
    @JOMOPressureWash2 жыл бұрын

    Fantastic breakdown

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    🙏🙏

  • @LionelBalland
    @LionelBalland2 жыл бұрын

    This is so helpful, great video, thank you!

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thank you so much Lionel! 💪💪

  • @DisruptorsPodcast

    @DisruptorsPodcast

    2 жыл бұрын

    Very helpful!!

  • @jamiewolff2956
    @jamiewolff29564 ай бұрын

    Like this guys breakdown he knows his stuff

  • @AC-qo8oq
    @AC-qo8oq4 ай бұрын

    That’s a great pp for that size!! That’s amazing! I’m getting deals that pp is 360, 140k rehab and saw shooting for 675k. My comp is my last flip sold for 625 but 300sq ft smaller. Rehab time 4 months.

  • @elliotsmith9795
    @elliotsmith97952 жыл бұрын

    Super well done Jimmy

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thanks Elliot!

  • @DisruptorsPodcast
    @DisruptorsPodcast2 жыл бұрын

    Great information shared!!

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thank you!!! 🙌

  • @bryanodom6551
    @bryanodom6551 Жыл бұрын

    James is my new favorite KZreadr

  • @kevinhall-realtorkellerwil7268
    @kevinhall-realtorkellerwil72682 жыл бұрын

    Very informal video. Awesome to see the knowledge you have accumulated on design and costs. Looking forward to learning that information. Thanks for taking the time of the video and sharing for others. Blessings

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    My pleasure Kevin!! This was all made possible by our amazing film/REI team 🙏 Stay tuned for more educational content!

  • @rodriamjasiel
    @rodriamjasiel Жыл бұрын

    Amazing! Thank you 🙏🏻

  • @ProjectRE

    @ProjectRE

    Жыл бұрын

    Thanks 😊

  • @jeffdorris5321
    @jeffdorris53212 жыл бұрын

    Nice work 🎆

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    🤑🤑

  • @jermainonye1661
    @jermainonye1661 Жыл бұрын

    Excellent Video James! Love watching your KZread videos and hearing from you on "On the Market". Is there anyway that you can share a link to the estimated profit calculator that you use?

  • @jamesdainard4242

    @jamesdainard4242

    Жыл бұрын

    Thank you!

  • @conradorodriguez9498
    @conradorodriguez94984 ай бұрын

    Super!

  • @ashleyzh7173
    @ashleyzh71732 жыл бұрын

    Thank you for sharing the information. I like your underwriting spreadsheet. Where can I get a similar one? Thank you

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    We will be offering it soon!

  • @bryanbaldwin8910
    @bryanbaldwin89102 жыл бұрын

    Amazing site. You ever run into any issues or additionally account for wetland designation or other ECA zones when analyzing or implementing projects like this?

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Yes! Complete nightmares and long permits…

  • @bldfinancial
    @bldfinancial2 жыл бұрын

    Got lots of value from this video 😊

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thanks!

  • @bmercedes1233
    @bmercedes1233 Жыл бұрын

    Do you have a video of the completed reno?

  • @cashfromclutter3148
    @cashfromclutter31482 жыл бұрын

    I could see the pain when you said the wholesalers was getting 150k 😂

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    🤣😅 The deal was amazing and b/c we had to close in a 5 day period the rates made sense, so it was all fair at the end of the day!

  • @talentekhuzwayo2705
    @talentekhuzwayo27058 ай бұрын

    Phenomenal video. Can i just ask, doesn't the wholesaler friendly title company ensure that title is clean and that u as the cash buyer don't have to worry about that?

  • @philw9787

    @philw9787

    2 ай бұрын

    Yep, title company handles all that

  • @robertbuscaglia7119
    @robertbuscaglia7119 Жыл бұрын

    James, this was incredibly informative. Thanks for sharing this. Where did the $486,000 Net Profit come from? The bottom of your Flip Pro Forma stated a Net Profit of $648,250. Was there debt service subtracted out?

  • @VeronicaGrimes_tc

    @VeronicaGrimes_tc

    11 ай бұрын

    Hey @robertbuscaglia7119 Did you get the help you're needing? I would love to help you in any way I can including funding your transactions if you need it. Reach out anytime!

  • @davidprice2206
    @davidprice2206 Жыл бұрын

    Whenever I see this guy I know I’m going to learn something. Hope we can connect one day at a BP event!

  • @jamesdainard4242

    @jamesdainard4242

    Жыл бұрын

    Thanks David!

  • @majesus19
    @majesus192 жыл бұрын

    Holly smokes, James you are amazing. You really, know your stuff. I love how focused and poised you were throughout the entire video. You new exactly what to do and how to accomplish it very quickly. Amazing seeing you at your head game. You are a pro.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thanks David! I really appreciate it!

  • @Stp1974
    @Stp19742 жыл бұрын

    I love sunken floors, which is probably why I don't get to make design decisions.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Im sure your taste is superb though 🤌

  • @marcospags7941
    @marcospags79412 жыл бұрын

    Great video. As a wholesaler how does the wholesaler protect himself? Does he buy the property and than get the deed than seek to you? Or does he just make a deal with the seller that you buy from the seller than pay the wholesaler separately?

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    They did their project and or assigns and assigned it over to us.

  • @tannerstafford16

    @tannerstafford16

    2 жыл бұрын

    Basically the wholesaler acts like he is buying the house and gets it under contract. He then looks for a buyer and a buyer will “buy” the contract from him in a sense. The new buyer goes through with the contract on the house and the wholesaler gets his assignment fee which in this case was over 100k

  • @VeronicaGrimes_tc

    @VeronicaGrimes_tc

    11 ай бұрын

    @marcospags7941 How are you since your last post? Did you get your questions answered? I can be a resource for you or even funds your transactions if you need it. Feel free to reach out using this account !

  • @josiahamaze
    @josiahamaze9 ай бұрын

    Its hard to not want to start wholesaling after watching all of this 😂

  • @samuelfairley1432
    @samuelfairley1432 Жыл бұрын

    What software are you using to punch in your numbers?

  • @SigiCoria-cd9vg
    @SigiCoria-cd9vg5 ай бұрын

    Where do we get tax records do we have to walk into city records for this or is there a website or App anyone recommends to do this?

  • @christophersalinas2328
    @christophersalinas23282 жыл бұрын

    That carpeted tub

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    🤣🤣 It had it's run

  • @aydennreda
    @aydennreda2 жыл бұрын

    Where can i get a copy of that Flip calculator spreadsheet?

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Yes! Follow me on IG and send a message with your contact and I’ll send.

  • @rewholesaler1432
    @rewholesaler14322 жыл бұрын

    Any wholesalers out there that are having trouble finding buyers, I may have a solution for you! Let me know you're interested and I can tell you more!!

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Yup - call me 😜

  • @demivincent6555
    @demivincent65552 жыл бұрын

    Amazing ✊🏽 🙊👊🏽

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Thank you!! ❤️

  • @AberrantArt
    @AberrantArt2 жыл бұрын

    How do you pull the tax record? Can you do this in a non disclosure state? How much does it cost?

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    That is unsure of… public sites not available?

  • @AberrantArt

    @AberrantArt

    2 жыл бұрын

    @@ProjectRE thank you for the reply. I was not sure if you used a service. Based on your reply, it seems you're using public data for this? I was not sure if non disclosure states offered this info as well so I thought I would ask. Thanks again for taking the time to respond.

  • @mikecs9731
    @mikecs97312 жыл бұрын

    this guys loan fees/mtg rate are through the roof

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    All comes into play, when you have a really good deal and they require you to close in a 5 day period the rates work!

  • @giancarlosarmiento5345
    @giancarlosarmiento53452 жыл бұрын

    Where can i get that flip calculator?

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Check out our you tube channel for all that info!

  • @TheSpatulaCity
    @TheSpatulaCity2 жыл бұрын

    I must not be a good investor. I'd be totally happy with that house as is, with a few updates.

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    It was a great house, but to maximize the value it needed a full once over and update

  • @wsl3119
    @wsl31192 жыл бұрын

    You won’t find this type of deal in this market now

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    We just closed on this one! Deals are there if you work with the right team!

  • @veneno276
    @veneno2762 жыл бұрын

    Well I closed on 2 buildings with 4 units on July 2021 for 400k both, I can sell them for 325k each by now. So is that a deal?!?!?!?

  • @veneno276

    @veneno276

    2 жыл бұрын

    @ßIGGÆR𝙿0𝚁𝙺𝙴𝚁𝚂☆☆ did you read my comment? I'm an investor. Why should I ask you how to start????!!!????

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Hey Eduardo! Is there a reason the values dropped?

  • @veneno276

    @veneno276

    2 жыл бұрын

    @@ProjectRE so I bought 2 buildings 4 units each for 400k, right now I can sell 325k each where it drop?????

  • @JuancoPRoFlow

    @JuancoPRoFlow

    2 жыл бұрын

    You shouldn't be asking that question after you already purchased the properties. Smh But yea its seems you got lucky and you are potentially not gonna lose any money.

  • @veneno276

    @veneno276

    2 жыл бұрын

    @@JuancoPRoFlow LOL so this is a public space, and I asked a question, shame??? LOL why???? You think is lucky??? Well let me tell you, look like I'm very lucky then, cause I haven't pay more then 200k any of my 4 plexes. What? You don't like that?

  • @igonz22
    @igonz222 жыл бұрын

    That wholesaler made 150k !!!!

  • @ProjectRE

    @ProjectRE

    2 жыл бұрын

    Crushed it!

  • @chetleonard169
    @chetleonard1697 ай бұрын

    How to bleach out a houses' personality to look like an instagram orgasm.