How to Beat Analysis Paralysis and Write the Offer in 2026

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0:00 Hello. I am back in Washington State
0:02 hosting an event at the Robin Hood
0:04 Village Resort. I'm going be down there
0:05 for the next week working on the final
0:07 phase. I finally bought out all of my
0:09 partners on this deal. So, that $4.5
0:11 million seller finance resort is now
0:13 officially an OGO only project. So, as
0:16 we finish that out, I'm celebrating with
0:17 a whole bunch of friends at an event
0:19 here. Now, on today's video, I'm going
0:21 to share how to avoid or get over
0:23 analysis paralysis. I talk a ton about
0:25 deal structure, about finding deals,
0:27 negotiating deals. The number one thing
0:29 where people actually get stuck though
0:31 is they get stuck on the one strategy
0:33 they need to close the deal or that one
0:35 metric that's not quite perfect. The
0:37 lack of certainty makes it impossible to
0:39 submit an offer. However, if you knew
0:41 with 99% certainty that when you close
0:43 this deal, you'll have day one cash flow
0:45 and you will make a lot of money on this
0:47 deal. You can write that offer. If
0:49 you're not that certain, I want to break
0:50 down the actual steps so that as we
0:53 enter 2026,
0:54 you are ready to go and buy a ton of
0:57 real estate like many members of multif
0:59 family strategy do. By the way, if
1:00 you're not a part of the group yet, it
1:02 is completely free on school s. There's
1:04 a link below. A community of thousands
1:07 of people who get together, talk real
1:09 estate, share ideas, share deals, and if
1:11 you're looking for people to fund your
1:12 deal, a lot of them live there, too. So,
1:14 if you're already on a free YouTube
1:16 video, might as well go there, join the
1:18 group, multif family strategy community
1:20 on school, like all of our information
1:22 products, completely free forever. Go
1:25 there. Free calculators, great
1:26 community. We'd love to see you there.
1:28 All right, let's get cracking. So, how
1:30 do you actually get over analysis
1:31 paralysis? What are the real steps? The
1:33 first thing you need to know is that
1:35 when you write an offer and you get an
1:36 accepted offer on a deal, you're
1:38 starting due diligence. You don't have
1:41 to know everything. You have to have a
1:42 good idea about why you believe that the
1:45 numbers that you're looking at are
1:46 likely accurate. One thing I do promise
1:48 you when you're under contract and
1:50 you're doing your financial and physical
1:51 due diligence, you will find things that
1:54 make the deal look different than when
1:55 you originally started. Sometimes it's
1:57 better, sometimes it's worse, but my
1:59 encouragement to you is that it will
2:01 never look exactly like it does when you
2:02 write that offer. So you are never there
2:05 is no circumstance where you are going
2:07 to be 100% confident nor is anyone else
2:09 who writes an offer and gets an accepted
2:11 offer. You are competing for what you
2:13 believe is likely true. When you go
2:15 under contract, you have a long period
2:16 of time, weeks to determine if your
2:19 assumptions were accurate. So the first
2:21 encouragement I have and the most
2:23 important thing, do your basic analysis.
2:25 Know your analysis of the property.
2:26 There is a free calculator you can use
2:28 in school to calculate all of these. But
2:30 at the end of the day, I need to know I
2:32 will have day one cash flow with a deal
2:34 structure that I came up with. Do not
2:35 buy cash negative deals. Have your
2:37 income higher than your total expenses.
2:40 A good rule of thumb, if you're cash
2:42 flowing 8% cash on cash, which simply
2:44 means if I put $100,000 into a deal, it
2:46 yields $8,000 a year after I pay all of
2:49 my expenses, the mortgage, the operating
2:51 expenses, I have $8,000 of cash flow
2:53 left over. That's a decent starting
2:56 point. any less than that and I have to
2:58 have a whole lot of upside or a very
3:00 specific reason why I'm going to do that
3:01 deal. I'm looking for a minimum of about
3:04 8% or a clear path to rapidly increase
3:08 it. Never starting with negative cash
3:10 flow. So that's our first parameter. The
3:12 next thing that we look at and really
3:13 the only other thing I care about debt
3:15 service coverage ratio to get a property
3:18 into bank financing. Even if I bought it
3:19 with seller financing today, I need a
3:22 path to get out of that debt product if
3:24 I need to for any reason. Banks want to
3:27 see this ratio at 1.25 or higher. So, I
3:30 look for that when I go into a deal. All
3:32 that means is you're basically your
3:34 total cash flow in this deal. The amount
3:36 of income that you have, you have enough
3:38 to pay your expenses, pay your mortgage,
3:40 and whatever else you have in proportion
3:42 to your mortgage is additional to the
3:44 DSCR. So, example, I have a $1,000
3:47 mortgage on a property and my total
3:49 income on this property at my net
3:52 operating income is $1,500.
3:55 I can pay my mortgage and pay myself
3:57 half of a mortgage. I have a DSCR of a
3:59 1.5.
4:01 You want to have that extra cushion of
4:03 at least a quarter point. And when you
4:05 stabilize your deal, when you finish
4:06 your project, you should hold it at a
4:09 1.5 or above. Why do banks love this
4:11 metric? Because it's a true cash flow
4:13 metric. It includes all of your
4:15 operating expenses and your mortgage. It
4:17 says after you pay all your bills, how
4:19 much money is actually left over. What
4:22 this lets me know is one, I am
4:23 definitely cash flowing, but two, I have
4:26 options to swap my debt product if I
4:29 need to. So now going into a deal, I
4:30 found a property that I like. I think I
4:32 understand the seller's motivation. I'm
4:34 writing an offer that's going to get
4:36 them a win and get me a win. I'm looking
4:37 for cash flow and I'm looking for
4:39 margin. That DSCR 1.25 or higher. I
4:43 believe I have found it. I am now
4:44 writing an offer. And if I correctly
4:47 identified what the seller wants, we go
4:49 under contract and we start our due
4:51 diligence. In due diligence, you're
4:53 going to do a financial due diligence
4:54 and a physical due diligence. You're
4:55 going to do an inspection and you're
4:57 going to review the bank statements, the
4:58 leases, and make sure that everything
5:00 maths out correctly. So, your leases
5:02 should match the bank statements should
5:03 match the rent roll, should match their
5:05 P&L or their T12, their trailing 12
5:07 month financials. That doesn't actually
5:09 take that long to do. You just want to
5:11 make sure, hey, when we add up all the
5:12 incomes, they match what we were
5:14 originally presented. When we add up all
5:15 the expenses, they match what were
5:17 originally projected. Now, we have a
5:19 real set of financials. We go through
5:20 due diligence. We finalize that piece.
5:23 If you have a good deal, and a good
5:24 deal, I mean a deal that it cash flows,
5:26 has upside, has margin, you can raise
5:28 capital for that deal, you can close
5:29 with your own money, you can close 100%
5:31 finance, there's a million ways that we
5:32 talk about on this channel to close a
5:34 good deal. But when you verified that
5:36 you actually have a solid deal, an
5:38 incomeroucing piece of real estate where
5:40 you can make money on this for either
5:42 yourself or yourself and investors, you
5:44 are now ready to start the closing
5:46 process. Whether you're going through
5:47 bank financing, you're going to check
5:48 their boxes. If it's seller financing,
5:50 you're ready to go sign on the dotted
5:52 line and close the deal. The simplicity
5:54 though, people get bogged down thinking
5:56 they need to know everything before they
5:58 go under contract. And you don't. You
6:00 need to know enough to make an informed
6:03 decision. And then you have weeks and
6:05 weeks and weeks to prove that your
6:08 assumptions were either true or false.
6:10 So you need to throw your hat in the
6:11 ring. If you believe that you have a
6:12 good set of assumptions or enough data,
6:15 go ahead and write the offer that makes
6:16 sense with the data you've been
6:17 presented. If anything changes, you can
6:19 get that money back. Whatever you put in
6:20 earnest money, you can get that back for
6:22 any reason or no reason at all. That's
6:24 standard verbiage for any contract. So
6:26 don't overstress your analysis at the
6:28 beginning. Do a solid analysis. Get a
6:31 second set of eyes if you're new on
6:32 this. run it past someone who's done
6:34 this in your same market. Get a second
6:37 opinion. If it looks good, go ahead and
6:38 don't get scared. Write that offer. Once
6:40 you're under contract, get serious. Most
6:42 deals that go under contract, most of
6:44 them do in fact close. So once you start
6:46 that journey, that accepted PSA is a
6:49 huge step. And you are already now more
6:51 than 50% likely statistically to close
6:54 on that deal. Keep it that simple. You
6:57 find the deal, you work the debt
6:58 product. If your numbers look good, you
7:00 have cash flow in DSCR, you find the
7:02 equity, which is your down payment from
7:04 either you or their partners, or
7:05 sometimes you have a deal that doesn't
7:07 even require any money down and you just
7:08 close it out as is. Lots of ways to do
7:11 this, but don't get overwhelmed or
7:12 bogged down. People get frustrated with
7:15 the cap rates, which are going to change
7:16 after you buy the deal. You're going in
7:18 cap rates, not your exit cap rate.
7:19 Market cap rates are also subject to
7:21 change. Throw out the alphabet soup of
7:23 stuff and focus on the main thing, your
7:25 buying income, and you're buying income
7:27 with margin. And if you can do this
7:29 consistently, you have the steps that
7:31 you need to start buying a deal. The
7:34 last piece of math you need to do is you
7:35 do your going in math. Here's where
7:37 we're starting. Where are you headed?
7:38 How long is the debt product you
7:40 negotiated? Do you have a partner that
7:41 you're buying out later? At the end of
7:43 your current structure, either the debt
7:44 or the partnership. Where do we
7:46 anticipate conservatively the deal is
7:47 going to be? You need to answer, how do
7:49 I buy it? How do I never lose it? You
7:50 need to have a plan of how am I going to
7:52 get this into new permanent debt? How am
7:53 I going to hold this property? your sole
7:56 goal. This is all you're trying to do.
7:57 Find that cash flow, which what we
7:59 covered in part one of this. Part two,
8:01 make sure that you never lose it. You
8:02 just gave yourself a raise. For most of
8:04 us, cash flow is the goal. So, we've
8:07 taken a step towards our goal. Let's
8:08 make sure we don't lose this or have to
8:10 sell it later to make the deal make
8:12 sense. Do our day one math. Do our exit
8:14 math whenever we're exiting from either
8:16 the debt or our existing equity stack.
8:19 That's our partnership if we brought
8:20 other people along. Once we get to that
8:22 point, how do you hold it? What are the
8:24 financials going to look like? And what
8:26 debt products do you intend to move into
8:29 or do you intend to pay off the
8:30 property? That's your entire process. If
8:32 you keep those steps in order, deal,
8:34 then debt, then equity going in math,
8:37 exit math, you're good to go. If you
8:39 want a calculator to rapidly analyze any
8:42 of these properties, link below, it's in
8:44 the school community. You can go right
8:45 into the classroom there. Download the
8:47 calculator that me and all of my
8:48 students use as a first look. It is used
8:51 in my mentorship almost exclusively. I
8:54 offer it to you. Like everything
8:55 informational for free. That is a tool
8:57 for you. Click link below. Join the
8:59 school community there. I hope this was
9:01 helpful. If you are stuck on analysis
9:03 paralysis, just know you will not know
9:05 everything before you get a deal
9:06 accepted. That's the most important
9:08 thing I can share. Be confident enough
9:10 to write the offer. Know enough math.
9:13 And if you're not there yet, get a
9:15 second opinion from any other investor
9:17 who has done deals in that market. If
9:19 you can get your confidence high enough
9:20 to at least go under contract, now you
9:22 can start actually proving your
9:23 assumptions. And if they prove to be
9:24 true, you're now ready to start the
9:26 closing process. That is all there is to
9:28 this. Once you do it once or twice, it's
9:30 just as easy or easier to do it another
9:33 10, 20, 30, 100 times. Hope this helps.
9:36 Let's go buy a ton of real estate here
9:38 in 2026. I'll see you on the next
9:40 episode.