What can you buy it for?
Start with the negotiated purchase price and every payment obligation. The entry price determines how much room you have to work with.
HOW WE LOOK FOR PROFIT
Find a purchase price below supported value, identify a credible resale opportunity and work out what you could keep after costs.
Start with the negotiated purchase price and every payment obligation. The entry price determines how much room you have to work with.
Use relevant completed transactions. Adjust for differences in size, view, floor, condition and timing rather than relying on nearby asking prices.
Separate an existing price gap from hoped-for future growth. State the event or change you are relying on and what happens if it does not occur.
Identify a plausible buyer at the intended resale price. Compare the other properties they could choose, including competing new supply.
Deduct purchase, financing, ownership and selling costs, together with agreed fees and profit share. Show the investor’s amount separately.
Map payments and holding costs through a delayed sale. Test a lower resale price and a loss before deciding how much capital to commit.
Sale proceeds − purchase price − acquisition, financing, holding and sale costs = deal profit before partnership compensation.
Your share depends on the compensation and profit definition agreed in writing. Any rent received, improvement costs, debt repayments and taxes that apply must be reconciled without double-counting. Return on your capital is a separate calculation and needs a defined capital base and dates.
What profit could remain if the planned price and timing are achieved? Identify the assumptions that support that outcome.
What changes when the buyer takes longer to arrive? Include the extra financing and ownership costs.
How far can the price fall before the deal breaks even or loses money? Decide whether that exposure fits your situation.
YOUR NEXT INVESTMENT
Tell us your budget and timeframe, or bring a property you are considering. Start with the opportunity and the numbers.
A useful screen should leave you with something you can inspect, challenge and update—not just a colour or a headline percentage.
What supports the view that the proposed purchase is below comparable value?
Who could buy later, what alternatives do they have and why would they pay the proposed price?
What changes if the exit takes longer, costs rise or the sale price is lower?