On The Come Up

Million Dollar Math with ADU development - Real Estate Investing (Episode 21)


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**(SORRY NICE MICROPHONE WASN'T WORKING)**

- Have calculator/pen and paper ready to follow along

- You learn this by doing it so work through it on paper

- Just filmed 7/16/2025 @8:32PM


Summary

In this episode, Chris Luna discusses the concept of a deal box, which is a list of criteria that real estate investors use to identify potential investment opportunities. He shares his favorite deal box, which includes factors such as lot size, zoning, and location. Luna explains how to calculate the floor area ratio (FAR) and how it affects the potential development on a property. He also demonstrates how to determine the value of a property based on the net operating income (NOI) and cap rate. Luna concludes by discussing the potential equity creation and cash-out refinance opportunities that can arise from successful real estate investments.


Keywords

real estate investing, deal box, criteria, lot size, zoning, location, floor area ratio, development, value, net operating income, cap rate, equity creation, cash-out refinance


Takeaways

A deal box is a list of criteria that real estate investors use to identify potential investment opportunities.

Factors such as lot size, zoning, and location are important considerations in a deal box.

The floor area ratio (FAR) determines the maximum development potential on a property.

The value of a property can be determined based on the net operating income (NOI) and cap rate.

Successful real estate investments can lead to equity creation and cash-out refinance opportunities.


Sound Bites

"What is a deal box? A deal box is a list of criteria that you're looking for as an investor."

"Big lots are great in PB. Where else? Normal Heights. So that's 92116. 92115, SDSU. And 92104, which is North Park."

"If it makes sense this way, then you're to go into a deep dive and really go through it line item by line item, make sure it pencils."


Chapters

00:00 Introduction to Deal Boxes

05:14 Key Factors in a Deal Box

10:06 Deep Dive into Deal Analysis

19:21 Wealth Creation through Real Estate Investing


ADU Development:

https://www.backyardbillionaire.com

https://www.skool.com/backyardcommunity/about









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On The Come UpBy Chris J. Luna

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