[Workshop] Find, Analyze, and Fund Your Real Estate Deals

Real estate investing gets a whole lot easier when you stop treating finding properties, analyzing properties, and financing properties like three completely separate jobs.

The most successful real estate investors I know have a system for doing all three.

In this workshop, I walked investors through the exact process I use to find cash-flowing rental properties, analyze the numbers, determine whether the deal actually makes sense, and then connect the property with financing that can help you buy and scale your portfolio.

We also brought in Nick Tierno from Conventus Lending to explain DSCR loans, how they work, what lenders look for, and why this type of financing can be such a powerful tool for real estate investors.

If you want to run the numbers yourself while reading this, you can create your free Income Builder account at Income Builder.

And if you want to see what financing could look like for your next investment property, you can use the Conventus Lending calculator and connect with their team.

The Real Estate Investing Process Is Simpler Than You Think

There are four major steps to successfully buying investment property: find the property, analyze the deal, fund the purchase, and manage the property for long-term income and wealth.

The mistake is starting with financing or starting with a property you happen to find online. Instead, you want to begin with your investment goal and then work backward to determine what type of property makes sense.

For me, the goal has always been simple: buy real estate that produces income and builds long-term wealth. I am not trying to predict whether the market will go up next year, and I am not buying because someone tells me a neighborhood is “hot.” I want the property to make sense based on the actual numbers.

Step 1: Find Investment Properties

The first step is finding properties that have the potential to work as investments. You can find properties through real estate agents, online listing services, wholesalers, direct mail, networking, property managers, and many other sources.

But here is the important part: you do not need to analyze every property you find. You need a quick way to eliminate bad properties and identify the ones worth deeper analysis.

This is where having the right numbers makes a massive difference.

I want to know the purchase price, expected rent, taxes, insurance, management costs, maintenance, vacancy, financing costs, and other expenses. Once you have those numbers, you can determine whether the property deserves your attention.

Use Income Builder to Analyze the Deal

One of the tools I built to make this process easier is Income Builder. It is designed to help real estate investors analyze properties, understand cash flow, and see how individual properties fit into an overall portfolio.

Instead of trying to build complicated spreadsheets every time you find a property, you can put the property into Income Builder and quickly see what the numbers look like.

You will need an Income Builder account. Sign up and use it for free here.

The goal is not to make investing complicated. The goal is to make the decision simple: Does this property make sense or does it not?

If the numbers are bad, move on. If the numbers look promising, investigate further.

That simple discipline can save you from making expensive mistakes.

Making Money with Rental Properties FREE Investing Course

Don’t Fall in Love With the Property

One of the most important rules I teach investors is to never fall in love with a property before you know the numbers.

A house can look beautiful. It can have a great kitchen, beautiful floors, a big backyard, and a neighborhood you personally love. None of those things automatically make it a good investment.

An investment property is a business.

The question isn’t, “Would I like to live here?” The question is, “Will this property produce the financial results I need?”

That distinction changes everything.

The 1% Rule Is a Starting Point

One simple metric investors often use to quickly screen rental properties is the 1% rule.

The basic idea is that the monthly rent should be approximately 1% of the purchase price. A $100,000 property, for example, would ideally rent for around $1,000 per month.

The 1% rule is not a guarantee that a property will cash flow. It is simply a quick screening tool that can help you determine whether a property deserves further investigation.

Markets are different, financing is different, expenses are different, and properties are different. That is why I would never purchase a property solely because it meets the 1% rule.

You still need to analyze the entire deal.

Cash Flow Is Critical

Cash flow is one of the most important numbers in rental property investing.

Your property collects rent, but you do not get to keep all of that rent. You have to account for your mortgage payment, property taxes, insurance, property management, maintenance, capital expenditures, vacancy, utilities when applicable, and other expenses.

What remains after those expenses is your cash flow.

This is why looking only at rent is dangerous. A property renting for $2,000 per month does not automatically produce $2,000 of income.

You need to know what happens to that $2,000 after every expense is paid.

Financing Can Make or Break the Deal

Once you find a property that works on paper, the next question becomes: How are you going to finance it?

This is where the workshop with Conventus Lending becomes particularly valuable. Conventus Lending helps investors understand financing options and how the loan itself affects the overall investment.

The financing isn’t just a way to get the property. The financing is part of the investment strategy.

A great property with terrible financing can become a bad investment. A properly structured loan can help turn a good property into a powerful long-term wealth-building asset.

Conventus Lending

DSCR Loans Can Be Powerful for Investors

One of the financing concepts we discussed is the DSCR loan.

DSCR stands for Debt Service Coverage Ratio. Instead of focusing primarily on your personal employment income, the lender can evaluate the property’s ability to generate enough income to cover its debt obligations.

This can be particularly useful for real estate investors who are building a portfolio.

As you acquire more properties, your personal income and traditional debt-to-income ratios can become increasingly complicated. A financing product that focuses more heavily on the property’s income-producing ability can potentially give investors another tool for growing their portfolio.

Of course, every loan has its own qualification requirements, costs, terms, and risks. You should understand the actual terms of the loan before deciding whether it makes sense for your particular investment.

The Property Has to Support the Loan

This brings us back to one of the most important concepts in investing: the property needs to make financial sense.

You don’t want to buy a property and then hope the rent will somehow cover the mortgage. You want to know before closing what the expected income and expenses look like.

That means you should calculate your projected debt service before deciding whether to purchase.

Conventus Lending

The loan payment is one of the largest expenses associated with many rental properties, so even a relatively small change in interest rate, loan amount, or down payment can have a meaningful effect on cash flow.

Don’t Forget About Interest Rates

Interest rates matter because they directly affect your monthly debt service.

When rates are higher, the mortgage payment generally increases. When rates are lower, the same property may produce more cash flow because less money is required to service the debt.

But I don’t recommend sitting around waiting for the “perfect” interest rate.

Instead, I recommend buying properties that work based on reasonable assumptions. If the investment only works if rates fall dramatically in the future, it may not be a strong investment today.

Points and Closing Costs Matter

Investors sometimes focus heavily on the interest rate while ignoring the other costs associated with financing.

Points, origination fees, appraisal costs, lender fees, closing costs, and other expenses can significantly affect the amount of money you have to bring to closing.

You need to look at the entire financing package, not just the advertised interest rate.

A loan with a slightly lower rate isn’t necessarily better if you are paying substantially more upfront to obtain it.

Prepayment Penalties Matter Too

Another financing detail investors need to understand is the prepayment penalty.

Some loans have restrictions or penalties if you pay off the loan early. That can matter if you plan to refinance, sell the property, or otherwise change your financing strategy.

Never assume that all investment loans are structured the same way.

Read the terms and ask questions before signing. Conventus Lending

Equity Capture Is an Important Concept

Cash flow isn’t the only way real estate makes you wealthy.

Another powerful concept is equity capture.

Equity capture occurs when you acquire a property for less than its actual value or create additional value through improvements. If you buy a property for $150,000 that is worth $175,000 after the appropriate improvements or valuation, you may have created significant equity.

That equity can become another resource in your investment strategy.

However, you should never assume that an appraisal will automatically come in at the value you expect. You need to understand the market, comparable properties, renovation costs, and the actual condition of the property.

Appraisals Matter

The appraisal is another critical part of the financing process.

A lender wants to know whether the property provides sufficient collateral for the loan. If your purchase price and the appraised value don’t line up, you may have to adjust your strategy.

This is another reason why you should not simply assume that the numbers will work.

You want to analyze the property conservatively and understand what happens if the appraisal comes in lower than expected.

Rent Estimates Matter

Another area where investors can get into trouble is overestimating rent.

You may see another house in the area renting for $2,000 and assume your property will generate the same amount. But differences in condition, location, amenities, size, bedrooms, bathrooms, and tenant demand can make a significant difference.

You need to verify rent rather than simply guessing.

A property that produces excellent cash flow at $2,000 per month could become a poor investment if the realistic market rent is only $1,600.

Credit Still Matters

Even when using financing designed for real estate investors, your financial profile can still matter.

Your credit history, existing debt, assets, reserves, experience, and other factors can influence the financing available to you.

This is another reason I encourage investors to build their financial foundation before trying to scale aggressively.

You want to become the type of borrower lenders want to work with.

Down Payment Isn’t the Only Cash Requirement

Many new investors think they only need enough money for the down payment.

That is rarely the entire story.

You may need money for closing costs, inspections, appraisals, repairs, reserves, initial maintenance, insurance, taxes, and other expenses.

You should know your total cash requirement before making an offer.

If you have $50,000 available, you shouldn’t assume you can put the entire $50,000 into a down payment. You need to maintain enough liquidity to handle the unexpected.

Short-Term Rentals Are Different

Short-term rentals can produce attractive revenue, but they also require a different analysis.

You can’t simply take the long-term rent and assume the short-term rental will automatically be more profitable. You need to consider occupancy, cleaning costs, furnishings, utilities, management, platform fees, maintenance, seasonality, and local regulations.

The revenue may be higher, but so can the expenses and management requirements.

The same rule still applies: analyze the actual numbers before buying.

Build Your Portfolio One Property at a Time

One of the biggest mistakes I see investors make is trying to build a huge portfolio immediately.

You don’t need 20 properties tomorrow.

You need to buy the next good property.

If that property produces cash flow, builds equity, and fits into your financial plan, then you can move on to the next one.

Over time, those individual properties can become a substantial portfolio.

Your Goal Should Be Financial Freedom

The ultimate objective isn’t owning houses just so you can tell people you own houses.

The objective is financial freedom.

Rental properties can provide monthly cash flow, potential appreciation, loan paydown, tax benefits, and opportunities to build equity. When those things compound over many years and multiple properties, the results can become significant.

That is what I mean when I talk about building income into your life.

The Complete Investment Property Workflow

Here is the process I recommend following every time you evaluate a property:

1. Find a property. Look for properties in markets where the numbers have the potential to work.

2. Estimate the rent. Use realistic rental comps instead of assuming the highest possible rent.

3. Calculate the expenses. Include taxes, insurance, vacancy, maintenance, capital expenditures, management, utilities, and other applicable costs.

4. Analyze the financing. Determine the loan amount, interest rate, payment, down payment, closing costs, points, and other financing terms.

5. Calculate cash flow. Determine what remains after all operating expenses and debt service.

6. Analyze the return. Look beyond cash flow and consider equity, appreciation potential, principal paydown, and your total investment.

7. Verify the property. Inspect the property, verify the rent assumptions, review the neighborhood, and investigate anything that could affect the investment.

8. Make the offer. If the numbers work and your due diligence supports the investment, negotiate the purchase.

9. Secure financing. Work with a lender who understands investment properties and can explain the loan terms clearly.

10. Close and operate the property. Once you own it, manage the property properly and continue tracking its performance.

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This process gives you a framework instead of relying on emotion.

Don’t Make Your Decision Based on One Number

A property isn’t good simply because it has positive cash flow.

You need to look at the entire investment.

A property might generate strong cash flow but require enormous repairs. Another might have modest cash flow but offer substantial equity capture and long-term potential.

This is why I like analyzing properties from multiple perspectives.

Cash flow matters. Equity matters. Financing matters. Risk matters. The market matters. Your overall portfolio matters.

The Power of Repeating the Process

Once you have a repeatable system, real estate investing becomes much less overwhelming.

You don’t need to know everything about every property. You need to know enough to quickly identify opportunities, eliminate bad deals, and spend your time analyzing the properties that have genuine potential.

That is exactly why I created Income Builder.

The goal is to make it easier to go from “I found a property” to “I know whether this property makes sense.”

And that is a massive difference.

Financing Is Part of Your Strategy

The other side of this process is financing.

You want a lender who understands investors and can help you understand what financing options are actually available to you. Conventus Lending is one resource investors can explore when looking at financing options.

The right financing can help you preserve capital, acquire additional properties, and build your portfolio more efficiently. But the financing should always support a good investment rather than be used to make a bad deal look good.

Conventus Lending

Stop Looking for the Perfect Deal

One of the biggest problems investors have is analysis paralysis.

They look at hundreds of properties, listen to dozens of podcasts, read countless articles, and keep waiting for the perfect opportunity.

The perfect deal doesn’t exist.

There are simply properties where the risk and reward make sense based on your goals and your numbers.

Your job is to become good enough at analyzing deals that you can recognize those opportunities when they appear.

Real Estate Investing Doesn’t Have to Be Complicated

At the end of the day, real estate investing is a business.

You acquire an asset, generate revenue from it, pay your expenses, service your debt, manage the property, and build wealth over time.

The technology, financing, spreadsheets, calculators, property managers, lenders, agents, and other resources are all there to help you execute that process.

But the fundamental question remains simple:

Does the deal make financial sense?

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If the answer is no, don’t buy it.

If the answer is yes, do your due diligence and determine whether it fits your overall strategy.

Your Next Step

If you’re serious about buying rental properties, don’t start by looking for a house you like. Start by creating a process for finding, analyzing, financing, and managing investment properties.

Use Income Builder to help analyze the numbers and understand how a property could affect your portfolio. Then work with experienced professionals who can help you structure the financing and execute the purchase correctly.

For financing education and investment-property lending options, check out Conventus Lending.

The goal isn’t to buy as many properties as possible.

The goal is to buy good properties that produce income, build wealth, and move you closer to financial freedom.

Once you learn how to find those properties, analyze them correctly, and fund them intelligently, you have a process you can repeat again and again.

And that repeatable process is what turns real estate investing from something you hope will make you wealthy into a system you can use to intentionally build wealth over time.

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