REI Wealth Monthly Issue 04 | Page 45

INTERNATIONAL PROPERTY INVESTING BASICS 3 –”STRATEGY AND TEAM” ZIV MAGEN THE NUMBERS This is as simple as it gets. No magic formulas or crazy assumptions. Numbers tell no lies - except the ones you'd tell yourself, and if you lie to yourself, stop - it'll cost you your pants. How to stop lying to yourself? Easy. The same way you ensure your team's "professional expectations" don't come back and bite you on the bum. With three grains of salt - 1. Open that excel sheet, put in the purchase prices, reasonable purchase expenses, reasonable rent expectation, reasonable vacancy and maintenance expectations, reasonable renovation expenses if any, reasonable running costs, and reasonable inflation/appreciation/depreciation expectations. 2. Work out the bottom line. 3. Assume everything just got 25% worse. Property management, insurance, maintenance, vacancy costs, purchase expenses, inflation, incoming rent - the lot. Still attractive? You got yourself a darn good deal, partner.