dasf instructions for ffc site

7/27/2019 DASF Instructions for FFC Site

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DASF Instructions

PLEASE READ AND PRINT THESE INSTRUCTIONS BEFORE starting the

Deal Analysis Submission Form (DASF)!

What Is The DASF

And Why Should I Use It?

DASF stands for: Deal Analysis Submission Form. The DASF is a very powerful tool that we will be

using to analyze your real estate deals.

NOTE: It's OK if you don't fully understand everything that's included in the DASF. The DASF is an

advanced tool that you may not fully be able to utilize until you have been fully trained by attending the

Million Dollar Foreclosure Seminar. So please just fill out the DASF to the best of your ability, and

leave any items that you don't understand blank.

The purpose of the DASF is to perform the following 2 functions:

1- To enable us to accurately analyze your deals.

2- To determine yourMaximum Purchase Price(s) before going out on an

appointment.

You are REQUIRED to complete a DASF for every deal that you submit for review. We cant provide

any advice on deals without a DASF because the DASF contains the key information that we need in

order to give you complete and accurate direction. (The same way a doctor cant prescribe any medicine

to a patient without knowing their symptoms, blood pressure, temperature, etc). Otherwise theyd just

be guessing!! And you dont want to be guessing when it comes to your health or your money!!

So with that being said, lets dive in and cover step-by-step how to complete the DASF.


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How to Complete the DASF

1. Open the DASF excel workbook

2. If asked, click Enable Macros3. Notice the tabs on the bottom of the workbook. The workbook consists of 9 different sheets that

you will be using. You can click on the different sheets to view them.

4. Notice how some of the cells are grey in color. The grey cells are fields that you can enter

information in. The other cells are locked and often contain formulas that take information from

a grey cell on the same page or a different page. For example, Rows 1 & 6 (the propertys

value), on the Summary Page, get their information from Row 8 on the Property Value page.

A completed DASF will consist of the following 8 pages:

1. Cover Page

2. DASF Summary

3. Value Analyzer

4. Debt Analyzer

5. Wholesale Exit

6. Outright Exit

7. Lease Option Exit

8. Owner Finance Exit

You may also include the Comments Page to further explain any unique or pertinent details.

After you have determined that there could be equity in the property, then your first step is to complete

the Property Value Analyzer . You can use comps taken from your ProfitGrabber to complete the Sold

Properties section of the worksheet. If you have access to the MLS, or know an agent that can send you

the comps, then youll be able to fill out the Active and Pending sections on the worksheet as well. If

you dont have access to the MLS (dont worry), youll just be using the Sold Properties section.


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When using the Value Analyzer, make sure that you are choosing the most comparable properties

possible. First of all, you will want to choose properties from the same subdivision. This is actually

more important than a comps distance from the subject property!! For example, a property could have

a comp that is close by, (right across the street in a different subdivision), and that comp could be much

less accurate than another comp that is further away, but in the same subdivision (neighborhood). This

is true because the value of a house can vary dramatically from one subdivision to another, even when

the houses are the same size! Therefore it is imperative that you only choose comps from the same

subdivision.

The only exception to this is when a property is in a rural area, or if there is not enough recent comps

(within the last 6-8 months), that are available in that neighborhood. In that case, you would have to go

outside of that neighborhood and choose comps by their proximity to the subject property. However,

you will have to be very careful to choose comps that are similar to your property, and also make sure to

allow an extra margin for error.

After searching for the comps that are in the same neighborhood, you will want to narrow down your

results. The first criteria you should look at is size. You should only look at comps that are within a

25% (max) range of your subject houses sq footage. Obviously the closer the sq ft to your subject

property the better.

The next factor you would look at would be the sale date (recent is better). You must then also consider

the condition of the property, its location in the neighborhood, and any upgrades it has.

Now use this information and determine your estimated ARV value of the property on row 8 (ARV =

After Repair Value). This should be a conservative and realistic estimate of what YOU think the

property (in good condition) would sell for if it was put on the market for a reasonable length of time.

We say YOU in capitals because we want your opinion! An appraisal does not count for the properties

value! We want to know what YOU think its worth!

Keep in mind this is the most important part of the DASF analysis because all of your other calculations

are based off of this number!


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Wholesale Exit

As you can see on the page, several values have already been filled in for you: the propertys

conservative ARV, your profit, and your buyers profit. Now in order to determine the Maximum

Purchase Price for a wholesale exit, we will need to subtract the remaining expenses.

***Note that your profit and your buyers profit are defaulted with the values 5% and 20%. These

percentages can be adjusted manually if need be.

Now simply enter in your repair costs, advertising costs, and closing expenses into the form and it will

automatically subtract their values and calculate the Maximum Purchase Price for a wholesale deal.

Now, check the Deal or No Deal section at the bottom. If the total loan balance on the property is less

than or equal to your Maximum Purchase Price, then the property qualifies as a wholesale deal!

Finally, make your final decision at the bottom of the page and then enter it on the summary page.

Outright Exit


conservative ARV, your profit, selling commission, holding costs, and the contribution to buyers

costs... Now in order to determine the Maximum Purchase Price for an outright sale exit, we will need

to subtract the remaining expenses.

***Note that the fields in parenthesis (rows 19, 20, 21, 22) may be manually adjusted.

Now simply enter in your closing expenses, repair costs & miscellaneous costs into the form and it will

automatically subtract their values and calculate the Maximum Purchase Price for an outright sale.


than or equal to your Maximum Purchase Price, then move on to step 2. If you can afford the holding


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costs, then you could use an outright sale with the property. If you cant afford the holding costs, you

may consider brining in a partner or private lender in order to sell it outright.


Lease Option Exit


conservative ARV, your profit, and your holding costs. Now in order to determine the Maximum

Purchase Price for a lease option exit, we will need to subtract the remaining expenses.

***Note that your profit and the holding costs (rows 28 & 29) are defaulted with the values 10% and 4

months. These percentages can be adjusted manually if need be.


automatically subtract their values and calculate the Maximum Purchase Price for a lease option exit.

Now, check the Deal or No Deal section at the bottom. First enter in the fair market rent for yoursubject property in the first field. The form will then multiply that amount by 1.2 in order to determine

what your forecasted incoming lease option payment on the property would be (you can typically collect

20% more than the fair market rent with a lease option property).

Next you will look at step 1 to see if the total loan balance on the property is less than or equal to your

Maximum Purchase Price. If it is, move on to step 2 and look at the holding costs. If you can afford the

holding costs, than move on to step 3, if you can not, you may need to consider a partner or private

lender.

On step 3, youre looking to see if you total monthly loan payment on the property is less than or equal

to the incoming lease option payment. If it is, this property would qualify for a lease option exit. If the

loan payment is higher than the lease option payment, then you need to go to step 4 and determine if you


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can afford the negative cash flow or not. If you can afford the negative cash flow, then you could sell

the property using a lease option. If you cant afford the negative cash flow, then you could consider

using a partner or private lender in order to sell the property with a lease option.

***Note, if the incoming lease option payment is larger than the loan payment, the property would be

positive cash flow and the number in step 4 will turn green to show that its positive cash flow.


Owner Finance Exit


conservative ARV, your profit, and your holding costs. Now in order to determine the Maximum

Purchase Price for an owner finance exit, we will need to subtract the remaining expenses.

***Note that your profit and the holding costs (rows 35 & 36) are defaulted with the values 10% and 4

months. These percentages can be adjusted manually if need be.


automatically subtract their values and calculate the Maximum Purchase Price for an owner finance exit.


than or equal to your Maximum Purchase Price, then move on to step 2 to look at the interest rate.

If the blended interest rate on the property is less than or equal to 7%, move on to step 3. If the interest

rate is more than 7%, this is not an owner finance deal.

On Step 3 look to see if you can afford the holding costs. If you can afford the holding costs, this

property would qualify for an owner finance exit, if not, consider using a partner or private lender.



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Completing the DASF

After you have completed the analysis of each of the four exit strategies, enter your top two choices at

the bottom of the Summary Page.

Now, the only portion of the DASF that remains to be completed is the VOWW Your Critical

Components on the Summary Page. You can enter in the Why the owner is selling, but you will need

to go out on the appointment at this point in order to determine how much the owner really wants for the

property. Remember, they wont tell you this over the phone. You need to meet them in person in order

to get this!

So you must now go out on the appointment and attempt to negotiate a purchase price for the property

that is at or below your Maximum Purchase Price. When you are able to do this, youll have a deal!

Good luck!

P.S. Please remember to complete the DASF form to the best of your ability before submitting it into us

for review. Also make sure to complete the form as accurately and honestly as possible. You need to

stand behind every piece of information that you put down. It's not beneficial to misrepresent any of the

numbers, as you would only be cheating yourself!

Please fax your completed DASF to us at: 858-278-2668

dasf instructions for ffc site

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