The 3 Stress Tests Every Real Estate Deal Must Survive
JAN 20, 202635 MIN
The 3 Stress Tests Every Real Estate Deal Must Survive
JAN 20, 202635 MIN
Description
Welcome back to Radical Wealth Plan, hosted by Paul Mark Morris and brought to you by Entrepreneur Media. In this episode, I sit down with Joey Sacavitch to break down how to analyze a real estate deal in under 20 minutes—using a clear, repeatable framework that strips out optimism and forces reality into the numbers. We walk through the three stress tests every deal must survive, why relying on appreciation is a mistake, and how value-add investing protects you when rates shift or markets turn. If you want a practical way to spot bad deals before they cost you real money, this episode gives you the exact lens I use.
*Joey Sacavitch*
Instagram: https://www.instagram.com/joeysnacks/?hl=en
Website: https://kw.com/de/agent/Joey-Sacavitch/120372
*Connect with Paul*
Instagram: https://www.instagram.com/paulmarkmorris/
TikTok: https://www.tiktok.com/@itspaulmarkmorris
YouTube: https://www.youtube.com/@radicalwealthplan
Facebook: https://www.facebook.com/paulmarkmorris
Presented by Entrepreneur Media & Money News Network
Entrepreneur Media: https://www.entrepreneur.com/podcasts
Money News Network: https://www.moneynewsnetwork.com
Timestamps
00:00:00 Introduction to Radical Wealth Plan
00:01:28 Key Elements of a Good Deal
00:02:03 Stress Testing Deals
00:03:54 Importance of Value Add in Real Estate
00:10:41 Calculating Gross Rent and Vacancy Rates
00:13:32 Operating Expenses and Debt Service
00:17:22 Starting with a Million-Dollar Investment
00:18:17 Comparing Different Investment Strategies
00:19:11 Handling Market Shifts and Property Value
00:20:57 Stress Tests for Real Estate Investments
00:23:28 Expense Shock Test and Due Diligence
00:26:36 Planning for Future Expenses
00:29:44 Rate and Refinance Stress Test Learn more about your ad choices. Visit megaphone.fm/adchoices