đź’ˇ A Smart Strategy for Real Estate Investing : The 100:10:3:1 Rule
Real estate investing can be incredibly rewarding—but it can also be overwhelming, especially for beginners. With so many listings, numbers to crunch, and decisions to make, it’s easy to either rush into a bad deal or become paralyzed by indecision.
That’s where the 100:10:3:1 rule comes in. This time-tested guideline helps investors structure their search and avoid costly mistakes. Popularized by property investor and educator Dolf de Roos in his book Real Estate Riches, this rule has become a go-to method for both new and seasoned real estate investors alike.
Let’s break it down and see how you can use this rule to improve your real estate investing journey.
🔍 What is the 100:10:3:1 Rule in Real Estate Investing?
The 100:10:3:1 rule is a practical framework that guides you through the four critical stages of buying an investment property. Here’s what it means in simple terms:
- Look at 100 properties
- Analyze 10 of them in depth
- Make offers on 3
- Close on 1
It’s not about hard numbers or a strict formula—rather, it’s about developing discipline, doing your homework, and filtering out the noise to find that one great investment deal.
🏠Step 1: The Search — Look at 100 Properties
Before jumping into any real estate deal, cast a wide net. This means browsing online listings, attending open houses, talking to agents, driving through neighborhoods, and researching different markets.
You’re not buying anything yet—you’re simply building awareness and getting familiar with price ranges, property types, rental markets, and red flags. Look at at least 100 properties. Yes, it sounds like a lot, but this step helps you sharpen your instincts and know what a good deal looks like when you see one.
🔑 Real estate investing is all about options. The more properties you see, the better your decisions will be.
📊 Step 2: The Analysis — Evaluate 10 Properties in Depth
From those 100, narrow your list to 10 properties that look promising. Now, it’s time for a deeper dive.
This is where real estate investing becomes analytical. You’ll want to:
- Calculate potential rental income and cash flow
- Estimate repair and renovation costs
- Analyze comparable sales (comps) in the area
- Check local vacancy rates and rental demand
- Evaluate the property’s long-term appreciation potential
- Understand the neighborhood’s crime rates, schools, and amenities
Create a spreadsheet, use real estate investing calculators, and don’t forget to consider your financing options. A property might look good on the surface but fall apart under a financial microscope.
💬 Step 3: The Offer — Make Offers on 3 Properties
After analyzing the numbers, choose your top 3 properties and prepare to make offers. This stage is all about negotiation and strategy.
Making multiple offers increases your chances of landing a deal. Real estate investing is competitive, and not every offer will be accepted. But even rejections are valuable learning experiences that improve your approach.
Tips for this stage:
- Don’t overpay—stick to your numbers
- Be willing to walk away if the deal doesn’t fit
- Include contingencies (inspection, financing) to protect yourself
đź’ˇ Confidence and patience are key when making offers. Let the numbers guide you, not emotions.
🔑 Step 4: The Purchase — Close on 1 Property
Finally, out of the three offers, you’ll hopefully close on one property. This is the one that makes the most sense financially and aligns with your investment goals.
Before closing, make sure to:
- Finalize your financing
- Complete a full property inspection
- Secure insurance and legal paperwork
- Plan for property management or tenant placement
Now you’re officially a real estate investor. 🎉
🧠Why the 100:10:3:1 Rule Works in Real Estate Investing
This rule helps protect you from two of the biggest pitfalls in real estate investing:
- Analysis Paralysis – Looking at too many properties without taking action.
- Impulsive Buying – Rushing into a deal because it “feels right” without running the numbers.
By following a structured approach, you’re setting up a filter system that helps you avoid bad investments and identify true opportunities.
It also teaches you that real estate investing isn’t just about finding a deal—it’s about finding the right deal.
đź‘Ł Final Thoughts: Stick to the Process
Real estate investing isn’t about luck—it’s about process, patience, and persistence. The 100:10:3:1 rule reminds us that success comes from doing the work, not just hoping for a quick win.
Some markets may be more competitive, requiring you to look at more than 100 properties. Other times, a gem may show up early in your search. Either way, the discipline behind this rule will keep you focused and reduce your risk.
Whether you’re buying your first rental property or expanding your portfolio, the 100:10:3:1 rule is a reliable compass in the often chaotic world of real estate investing.
🧠Ready to Start Your Investing Journey?
The market is full of opportunities—but only for those who are prepared. So start looking, start analyzing, and start building your path to financial freedom through real estate investing.
Good luck—and invest smart. 🏡💼
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