How to Analyze a Real Estate Deal Before You Buy

Brandon Beaird (00:00)
this is not get rich quick. This is not you’re going to make $100,000 within 30 days or buy 50 properties within your first week. That’s not what I’m after. The true investor is calculated. seasoned through years of investing and has partnered with the right people and understands this process. And this process is not short lived,

Cody Crabb (01:59)
Welcome back to The Real Estate Pros Podcast by Investor Fuel. I’m your host, Cody Crabb, and today I’m talking to Brandon Beaird. Brandon’s out of Mobile, Alabama. He’s been investing for 18 years. He’s an appraiser. He owns 60 plus properties. And if that wasn’t enough, he also teaches people how to invest through Grow Wealth 101. I am so excited to dig into all this and how these pieces fit together and how he has time to do any of this. Brandon, thanks so much for hopping on today.

Brandon Beaird (02:26)
Okay, thank you for having me. I’m super excited to be here today.

Cody Crabb (02:29)
I hope you know I was very nervous saying mobile because I was like, Am I gonna say it the wrong way? ‘Cause apparently I’m

Brandon Beaird (02:35)
mispronounced it not not a problem.

Cody Crabb (02:37)
yeah. Well so peop for people that don’t know you yet, give us the quick version of, you know, your history, the many the many facets of what you do and what Grow Wealth Grow Wealth 101? That’s not what it is. Grow Wealth 101 Grow Wealth 101 tell us what what that does and how it connects to your own investing as well. Sure.

Brandon Beaird (02:56)
I started 22, 23 years ago as an appraiser. I started as an investor 18 years ago, found and grow wealth about three years ago and really have just tied all those pieces together to build a company that helps people. And that’s what I’m really after. I really want to help people invest in real estate and it’s something that I enjoy and years ago I thought to myself, this is a great opportunity for me to share what I know with others and really make success stories out of my fellow community members.

Cody Crabb (03:30)
Hmm. So you because you’ve been in real estate that was a that was a very good, succinct history of many different facets there. So I appreciate that. so you’ve because you’ve been in real estate from multiple angles, you know, how did all these come together? I mean, it seems like you’ve kind of just thought, well, what jobs can I have in real estate? ‘Cause I’m gonna do all of them at some point. So

Brandon Beaird (03:52)
I learned a long time ago that I didn’t necessarily have one niche. I have to have multiple niches because so much of what I do feeds off each other. As an example, I started years ago as an appraiser and I’m like, look, you know, I’m valuing income producing properties. If I can’t practically invest myself and make money in real estate, then how can I tell people how to do it? And then it led into Grow Wealth 101 where I’m like, you know what, for years I have invested in real estate. I’ve made money. I’ve continued to grow my portfolio and I had people that come to me all the time and like, can Can you help me? And I’m like, absolutely, I can help you. And so I really think that that is probably the greatest thrill that I have of all the jobs that I do is truly teaching people how to invest.

Cody Crabb (04:45)
Hmm. So I I love that because I think investing is we we talk about it just like as like a thing you do, you know, like having your money in a bank or something, but it it’s more than that. I mean it re it really can kind of unlock some possibilities for someone. So when someone comes to Grow Wealth 101 where are they usually stuck? Like is it just fear? Is it like I don’t have any money? Is it I don’t know what a deal even looks like? Like what level do people come to you usually?

Brandon Beaird (05:13)
above I will say it’s fear. People talk about it all the time. They’re like I really really want to invest in real estate. I hear the great benefits for wealth building. I hear people talk about the tax advantages. I hear all these great things but I’m not willing to make that first step. And the fear factor, yes, it’s definitely there, but you have to really get your mindset right before you can really even start. And I tell people, once you get your mindset right and you’re determined to do it, you need to partner with the right people. And that’s at Grow Wealth 101. What we’re really specializing in is partnering people with people that know what they’re doing, that have that real practical experience. You can go and you can take online classes, you can take a college course, you can listen to podcasts, but do those people really have that wealth of experience? People all the time when I appraise properties like, well, you probably never have bought an investment property. I’m like, I have 60 of them. So I do this too. And it really adds to my credibility, not only as an appraiser, but as an investor, as an education provider.

Cody Crabb (07:15)
Yeah, well and I see because we because the internet is how it is and every square inch of everything is monetized and stuff, people tri people do this all the time, right? You see like go take go take my course of how to earn, you know, twenty K in a in a a month by next year. And I’m a little bit like, Well, if you could do that in a year, you would be just doing that over and over instead of selling this course, man. Like it’s of course you would. So I think it’s it really goes to show like I think someone that’s doing a course or something and then you go, No, no, no, I’m not me I’m not trying to like make a living from the course. I I’m doing it over here doing the thing already. That’s

Brandon Beaird (07:53)
practically doing it. And one of the things of Grow Wealth 101 that I think is very, important is our tier level, depending on where you are. We’re willing to help you along. If you’re a newbie investor, great. If you’re a seasoned investor, great. And so we have different membership tiers that allow you to decide, hey, this is where I am. This is what I need. I want to talk with other professionals in our community where we’re more or less taking people that are newbie investors, we’re taking seasoned investors, and we’re pairing them together. And I really don’t know of another product that truly does that. And people have different communities, people have different products, though, but we want to go with the full realm of what it takes to be a true investor.

Cody Crabb (08:41)
Hm. Yeah. So it’s not really like a static course. It’s like a community

Brandon Beaird (08:45)
And there’s a course element to it. Don’t get me wrong there. There is a course element and obviously there are education providers out there, but we’re really taking it full circle. Okay. Yes, we have education. Yes, we have a community. Yes, we have a tiered level approach depending on where you are investing. And we also do individual coaching as well. And that is really what I truly enjoy the most is I really enjoy coaching people. For many years I did it. It’s just a community service project for several people. And I’m like, yes, I enjoy doing this. But at the same time, though, I want to make a little bit of money myself. But I truly enjoy that, though. I told my wife years ago, if I can teach people how to do it, see their success stories and also incorporate my success stories into that, it’s a win for everybody.

Cody Crabb (09:36)
Yeah. I love that because I think when people you know, at Investor Fuel we definitely are believers in that, like the whole a rising tide lifts all ships. Like don’t gatekeep your knowledge. You’re not gonna you’re not gonna give your secret away and then you’re gonna be out of a job or something. That’s not how this works. It’s it sharing your knowledge is always going to come back to you in a good way if you’re doing it in good faith and to people that need help. I think that’s true.

Brandon Beaird (10:02)
It’s a building block process. This is not something that’s done overnight. I tell people I did a webinar several weeks ago and the first thing I said is this is not get rich quick. This is not you’re going to make $100,000 within 30 days or buy 50 properties within your first week. That’s not what I’m after. The true investor is calculated. seasoned through years of investing and has partnered with the right people and understands this process. And this process is not short lived, just like people talk about investing in the stock market. And I know nothing really about the stock market other than I do have a few small investments. I a 401k, I have some other products, but that’s not my expertise. And they preach patience. Well, in real estate, Patience is important. You have ups, you have downs, and if you’re in for the long haul, you’re going to be successful.

Cody Crabb (11:38)
Yeah, and I think especially in real estate where it you’d can’t really it it’s not it’s not designed the same way where the stock market is. You’d like watch the ups and downs and it’s not really about that as much. Where it’s more about kind of this long term strategy. So, you know, what would a calculated step actually look like for someone brand new that is kind of just getting into investing?

Brandon Beaird (12:02)
Well, first off, hopefully you would partner with us and Grow Wealth 101. I think it’s realistic once you have your team, your Realtor, your appraiser, your home inspector, your contractor. I think it’s realistic within 60 days to buy your first property.

Cody Crabb (12:07)
Yeah, I would say so.

Brandon Beaird (12:22)
But building your team is first and foremost, the most important factor. I would not advise people to go out and say, hey, I drove to work yesterday and I saw a house on the side of the road. I’m going to call the agent and I want to buy an investment property. I would not advise you to do it. I’m sure there are people that have found that to be successful. All right. It took me, I waited actually two years to buy my first property. But I’ll tell you what was good is if I had bought the first year that I looked at properties and I got my feet wet, as far as prospecting, it was a horrible time to buy because it was at the top of the market. When I did decide to buy, I got over the hurdle myself and had the mindset to do it. And then it was a great time to buy. We had a lot of foreclosures in the market. Properties were declining in value. It was a…

Cody Crabb (12:59)
Right.

Brandon Beaird (13:13)
unique time within itself and there were a lot of great opportunities, but you can find deals in every market, in hot markets, in slow markets, in markets that are stable. And so if you truly analyze the market as you should, then you’re going to get the right people to help you. And I truly advise you that that is the true key in all of this.

Cody Crabb (13:38)
Mm. It’s is it the so it’s the people. It’s the is that what is that what you’re saying?

Brandon Beaird (13:42)
Right. And Grow Wealth 101, we will lead you to the right people, but you have to be willing to listen to us, which I’ve had some wonderful people that have come to me like, Hey, just lead me to water. Okay. I will drink if you lead me to water. I’m like, in turn, you have to have the mindset to listen to what we have to say and truly take it to the next step.

Cody Crabb (14:02)
Yeah. So, in that in that spirit of being w open minded and willing to kind of you know, let the good info in. Yeah you know, what is what are some things that what are some misconceptions? So you teach you talk to these early investors all the time. What is what is a miscon what is a misconception that they come to you with that you’re having to correct all the time as they’re starting out?

Brandon Beaird (14:27)
I would say that real estate is expensive to invest in. people have that fear, I don’t have the money to do it. You may not have the money sitting in the bank right now, but I’ll tell you, we’ll tell you how you can do it. You may have $500, you may have $200,000. It doesn’t matter. We will show you the best way based on your situation to invest. But as I said, The monetary factor, that’s what people are so concerned about, family members, for years were concerned about that. Look, I don’t have the money to do it. I want to do it. Okay, I’m eager to do it. I see the benefit in doing it, but I don’t have the money. Well, we can help you with that.

Cody Crabb (15:08)
Hm, interesting. So what does I would be curious to know what would a an investment what would investment advice look like for someone that comes to you with like a thousand dollars and they’re like, I I can do it. Like that’s that’s their net worth. You know what I mean? Like I’m I’m curious what that looks like.

Brandon Beaird (15:24)
Well, for that specific person, a partner is probably going to be the best way to do it. Yeah. Honestly. Also, example is, let’s say, for instance, you’re single, you want to buy an investment property, but you’re like, hey, I can live in the house, but I can also have another unit on site. How about a duplex? And so I’ve talked with

Cody Crabb (15:31)
Sure, yeah.

Brandon Beaird (15:51)
A number of people over the years are like, well, I’m buying a house, but I can share the house with someone else. Or what if it has a guest house, garage apartment? Think in terms of income, okay. Now, in my situation, do I personally live in a duplex? No, I don’t live in a duplex, but I’ll tell you 20 something years ago after I graduated from college, that would have been great.

Cody Crabb (16:14)
Yeah, yeah, true.

Brandon Beaird (16:17)
Buy mortgage, but at the same time make money along the way.

Cody Crabb (17:01)
very true. And I’m I’m thinking like the the d the phase of your life is so important. Like it changed it just changes everything. Yeah. I’ve got right now I’ve got two rambunctious little boys that are seven and four. And I will tell you, there is no chance I could have no yard or no like would not work no matter what. But but they’re it early in my marriage, my wife and I lived in a square six hundred square foot apartment. I don’t know how that works.

Brandon Beaird (17:07)
Are you in your life? You have to, like what? You did it right.

Cody Crabb (17:29)
But it’s but it’s one of those things where like if you’re if your situation allows for it and you know me living in a bigger place too, I’m sure that lends itself to some other opportunities too. So I I like the idea that you kind of invest to your you not just your situation, but like your your goals too. So you kind of take everything into account and then you put a plan in place. I I love that.

Brandon Beaird (17:51)
I have a friend of mine, the second he graduated from college, he bought his first house. And you know what he did? He rented two rooms to friends of ours. And so, yeah, it was a great strategy. I’m like, wow, he was the only friend of mine that bought a house right the day that he graduated from college. And he was making money. He had the knowledge and the know how back then to do it. And I’m like, boy, wouldn’t that be great? And I encourage people to rent a room, rent a garage apartment, buy a house with a guest house, buy a duplex, buy a triplex. Do something.

Cody Crabb (18:27)
Hmm. So I I love this because w you know, when you’re coaching someone, everyone’s life is different. Your your financial circumstances, your life circumstances, what are the main things you look at in someone’s life before you kind of tell them which path is kind of is looking like it makes the most sense for them?

Brandon Beaird (18:44)
Well, like you mentioned earlier, you know, where are you? Okay. Are you at the point of downsizing as an example? And there are a lot of people now that are like, you know, I want to downsize. Okay. You know, maybe you keep that primary residence and you downsize into something smaller and you rent it. Okay. That would be perfect for someone who is up in age. Okay. Not necessarily. full retirement, but to say, you know what, I’m going to try it and let’s see what happens. Maybe if you’re in a community that has a lot of vacation properties, okay, that’s another situation. I praise a lot of vacation properties that are second homes. In fact, I just finished a report a moment ago for two investment properties. And so that person at that particular junction in their life, or I can buy two properties, I can make this work, I can make this cash flow work. And those are just two examples of maybe thinking outside of the box. Let’s say as an example, you have a house that you wanna eventually occupy as a second home, but in the interim you wanna rent it.

Cody Crabb (19:58)
Mm.

Brandon Beaird (19:59)
And my in-laws did that for many, many years. And they’ve occupied it as a second. And now they’re actually going to rent it as a short-term, in a short-term situation. But how about that? What better way to get your feet wet?

Cody Crabb (20:10)
Hmm. I love that. Yeah, I think you know, and and and this makes me think, you know, with the with the appraisal side of what you do, you know, I I feel like that must really help you spot opportunities. ‘Cause ’cause like I think there’s a lot of stuff that looks good or looks bad on paper, but maybe is super not that way. So like ha has that ever come in handy to kind of give you an advice?

Brandon Beaird (20:24)
It does, it does. Well, has, think of an investor and this novice investor, he came to me, you know, his first deal he did was, was okay. It wasn’t the best deal. The second deal he came to me with and I looked at his cost estimates. said, boy, you are way out of whack. He’s like, well, it’s going to cost me this. I said, I can argue with your cost. Your cost is your cost. Now you may want to go with a different contractor. You may want to try to do some things yourself, but I told him, I’m like, this is not good. that this does not look good on paper. He’s like, well, I just assume though that cost equals market value. I said, it may, but a property may be worth more. It may be less. We don’t know until we really run the numbers. And people think when I go out and I look at properties that I know what they’re worth. I don’t know what they’re worth. That’s why I have a job to do. I go back, I’ve… gathered information on site, I’ve measured the property to attend the square footage, I’ve taken pictures, I’ve noted updates, renovations, etc. And then I’m running numbers. That’s where the appraiser comes into play on the front end. Yeah, I tell people getting an appraisal at the tail end for bank financing may not necessarily be your best option.

Cody Crabb (21:52)
Huh. Yeah. I mean yeah

Brandon Beaird (21:55)
I want to find out on the front end what the property is worth before you invest, know, time with the lender, with the home inspector, all these other items, if you don’t really know what the property is worth to start with.

Cody Crabb (22:08)
Yeah. So to you, what what is the difference between cost and value? Because I feel like a lot of people hear those two words and go they’re the same thing. That’s there’s no difference. But they’re not.

Brandon Beaird (22:19)
is truly what it costs for the materials, the renovation, the builder profit. Value is what is recognized by the market. Now, it may be, if it’s a single family home, it may be what we call the sales comparison approach, where we’re analyzing sales. If it’s an income producing property, it may be based on the income. There may be a gross rent multiplier, which is a factor that helps us determine value. It may be a capitalization rate. that especially with commercial properties and so these are factors that we take into consideration but that doesn’t necessarily mean because your budget is this amount that the property is worth that on the open market. It may be but it may not be.

Cody Crabb (23:02)
Yeah. And I think that that’s a that’s a good call out because that number is based on a lot of things, some of which may be totally made up and impossible to calculate. Like you hear like you hear about market sentiment. Like that’s just what people kind of

Brandon Beaird (23:16)
Yeah, have to take the emotion out of it. That is one of the first things that I talked about in my courses. You have to take the emotion out of it. I love this house. I want this to be my first investment, but if it’s not a good deal, move on. Find something else because I can tell you that love of that particular house, okay, in five, 10, 15 years down the road, if it’s a lemon and it’s not a good property, you’ve lost out.

Cody Crabb (23:42)
Yeah, and I have a feeling you’re not gonna love it as much. Yeah. Well, so what what are the first numbers you tend to look at? Because like you said, it’s not just like you assign a value by looking at it. Like what are the what are the numbers that you start to break down that start to look like a good deal?

Brandon Beaird (23:57)
First thing I do is look at sales in the market. What is selling in the marketplace? Is it a slower market? Is it an appreciating market? And people just assume, a lot of people don’t understand this, just because somebody put something on the market doesn’t mean that the asking price or the listing price is right.

Cody Crabb (24:17)
That’s true. Yeah.

Brandon Beaird (24:18)
And so that’s it Grow Wealth 101. Obviously, I’m not necessarily telling you what to pay for a house in your market. Now, I can coach you and I can analyze the deal for you, okay, and give you advice, professional advice, but at the same time, you’re going to have to really dive into it yourself. And I’m going to teach you the strategies in order to determine that, whether that asking price is right.

Cody Crabb (24:44)
Mm. So how do you go ahead.

Brandon Beaird (24:46)
I was just going say, in many investors, they get all the way down a week before closing, and they’re like, man, you know, I really didn’t look at this the right way. I didn’t consider that the asking price may have been too high.

Cody Crabb (24:59)
So, how do you tell the difference between a market where it’s things are appreciating or people are just paying too much? Like to me, they look the same.

Brandon Beaird (25:07)
One of the things that I look at, I would say Zillow, I look at Redfin, each MLS typically has a public website where you can go in and pull. Obviously for our market, I have a private multiple listing service, but our different platforms actually have public sites. So I’m going in, I’m looking at sales, I’m looking at the price per square foot, I’m looking at the overall sale prices, I’m looking at the bedrooms, the bathrooms. I’m also looking at median price month over month. How is the price in your market? Is it continuing to increase? Is it relatively stable? Is it declining? That’s really, really a good thing to look at.

Cody Crabb (25:49)
Hm, yeah. I I I think this is great. This is all really good, like non emotional advice and I think that’s

Brandon Beaird (25:56)
No emotion. That’s what I tell people. Leave the emotion at the door.

Cody Crabb (26:00)
Yeah, it it’s so sc it’s scary though because it’s one of those things where it really it affects everything that’s emotional in your life, your future, your family, finances everything. And but you really do have to just go, do the numbers work? Yeah, and it and it’s not as simple as it sounds sometimes. So the we’re we are this is so great. We are running out of time, but I would love to kind of you know, if people want to connect with you, if they’re like Brandon

Brandon Beaird (26:14)
Do the numbers work?

Cody Crabb (26:29)
Y I need your help. I need I need to talk to you. I need to get started the right way. Where can people go online to to find

Brandon Beaird (26:35)
You can our website www.growwealth101.com. We’re on Facebook. We’re on Instagram. We’re on TikTok and LinkedIn. So check us out.

Cody Crabb (26:47)
Yeah, for sure. It sounds like you’ve got a lot of really great advice for those starting out, and not in like a, you know, what is investing kind of way. Like a I just haven’t quite been able to make it work yet.

Brandon Beaird (26:59)
We’re going to take it to the next level.

Cody Crabb (27:01)
Yeah, I love that. Well th perfect. Thank you so much for all this. Yeah.

Brandon Beaird (27:05)
I it. Love you guys at Investor Fuel. Hopefully we’ll talk soon.

Cody Crabb (27:10)
For sure. And thank you, listeners, for giving us some of your time as well. Make sure you follow Brandon and don’t miss another episode so you can get great conversations like this. Thanks so much, and we’ll catch you next time.