Experience vs. Numbers · Flip Man’s Wholesaling Network

Experience vs. Numbers

One thing property investing has taught me is that the spreadsheet can tell you whether a deal makes sense on paper, but experience can sometimes tell you what the spreadsheet is missing.

Earlier on, I found myself focusing heavily on the obvious numbers, purchase price, rental income, costs, yield and projected returns.

Over time, I started paying much more attention to the things that don't always fit neatly into a spreadsheet:

How realistic the assumptions actually are
The condition and potential of the property
The area and tenant demand
How motivated the other party really is
The people involved in the transaction
What could go wrong that isn't immediately visible in the figures

That doesn't mean ignoring the numbers. Quite the opposite.

For me, the numbers are still the starting point. Experience simply helps me ask better questions about those numbers before making a decision.

Sometimes a deal that looks great on paper has too many unknowns. Other times, a deal that initially looks average becomes interesting once you understand the situation behind it.

I'm still learning from every deal and, honestly, I think that's one of the most valuable parts of property investing.

For those of you with some experience in property, when have you trusted your judgement or experience over what the spreadsheet was telling you, and how did it turn out?

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Experience vs. Numbers