Learning to find great investment properties takes a lot of hard work. There is no magic formula. There is no Deal Analysis Bible. It requires numerous skills and lots of time to develop.

So, what does this mean for you? How do you pick out those hidden diamonds in the rough?

To get started, I would highly suggest you begin looking at a minimum of one hundred deals per week. Soak yourself in numbers and learn what it means to have positive cash flow. When you find what you think is a gem, send the numbers over to a mentor, accountant, or experienced investor and ask them what they think. Listen to what they tell you and pay attention to the details.

If the numbers look like they’re making sense, then find a good contractor or handyman to bring through the properties with you to see if your numbers are even halfway accurate in the way of rehab. Find out what they could cut costs on and learn what to spend more on and what to spend less on. Sometimes less is more and sometimes less is not quite enough.

If things are still looking good, ask yourself why a more experienced investor hasn’t already bought this property and then really think about it. If you think you’re missing something, then figure out what it is. The cash flow may not be what you think it is.

There are usually problems with every property I purchase or locate for my investors, and I completely expect that. The difference is that I’m looking for problems and then I do my best to find solutions for those problems. I’m not scared to look for problems now, because I don’t want to find them later.

Investing is a process and so is learning to find the deals. So, approach it like it is. You’ll be glad you learned to run the numbers and find the great investment properties.

Tuesday’s Tip: For every 100 properties you look at, expect to find 2 or 3 good deals. But you’ve got to be real careful, because they may be hidden.

No, those aren’t shadows. It’s a camo house.