Posted by Joe Kaiser on July 09, 2007 at 02:29:33:
David, that’s really smart. Never thought of it that way, but you’re right.
Nice.
Joe
Officially lost first Deal !! - Posted by Todd
Posted by Todd on July 06, 2007 at 12:03:52:
Well it is official. Finally get my first taste of a “deal” and lost it just like that.
I was out bidd by another and waited too long to submit my offer.
Lessons learned? Act Fast!
When Your getting started… - Posted by David Alexander
Posted by David Alexander on July 07, 2007 at 04:38:34:
Your going to need to work on a whole more deals at a time…
Why… the sad truth is “your green”…
So, you need to get about 25… maybe 30, 40 or even 50 deals in the pipeline before you hit some paydirt…
The cool thing is once you figure out how to get multiple deals working in the pipeline… you soon get to where your closing ratio will go up… and you want need as many…
But, starting out… if your trying to make a living at this… get 25 deals going minimum…
And stop making offers… You’ll get more deals that way…
People that really want you to buy there house… just want to you to take the darn… they are way past making a profit on it…
I suspect… Your looking for deals… (and in the wrong places) instead of getting them coming to you…
I prefer my sellers to find me… sure I don’t “Go Subterranian” as Joe would call it and every deal isn’t a monster…
But, a steady flow of deals ( 3 - 5 ) a month with an average profit of 17k… ain’t too shabby, especially when it’s on autopilot… with a couple employees…
Re: Officially lost first Deal !! - Posted by Joe Kaiser
Posted by Joe Kaiser on July 06, 2007 at 16:59:43:
Submit your offer?
It’s a silly way to play this game. Don’t make offers.
Instead, meet with the seller, get to know each other a bit so you can
both understand each other’s needs, and come up with an agreement
that satisfies both of you.
Sticking a number on a fill-in-the-blank purchase agreement and then
“submitting” it to the seller is exactly the wrong way to buy real estate
smart.
Act fast is good. Act smart is better.
Joe Kaiser
Re: Officially lost first Deal !! - Posted by IB (NJ)
Posted by IB (NJ) on July 06, 2007 at 13:27:30:
Sounds like you never had a deal. You don’t have a ‘deal’ until you and the necessary parties have come to an agreement.
What you lost was a potential deal. But from your post I can’t tell if you were slow with the initial offer or the counter offer. If it was the initial offer you would have lost anyway since you were eventually outbidded on what you were going to bid.
Ib
Re: When Your getting started… - Posted by Todd
Posted by Todd on July 07, 2007 at 05:51:24:
Thanks for all the insight and education. I am determined to “hit” and I will.
I think the key for me in my area of Boston is to focus and find the niche.
Re: Officially lost first Deal !! - Posted by Todd
Posted by Todd on July 06, 2007 at 17:21:50:
I agree. I did meet with the sellers and had a great relationship with same. I knew what they needed and they wanted me to have the house (two family) Trouble is I never submitted my offer. In retrospect, it would most likely not had been accepted anyway. The Winning offer, 365K, submitted today, two weeks after I saw the property was 100K higher than what I would have offered.
This place was listed at 400K and needed 200K of work with a ARV of 556K
Go Figure! So much for research and DD.
What did I do Wrong??
Re: When Your getting started… - Posted by David Alexander
Posted by David Alexander on July 07, 2007 at 10:30:43:
Explain what you mean by finding a “niche” it’s different in teh real estate business than any other… a “niche” often finds you…
Wasted time on a house you couldn’t begin to buy - Posted by DaveD (WI)
Posted by DaveD (WI) on July 06, 2007 at 18:08:44:
What you did wrong was look at the wrong house. That is, something the retail market gets all lathered up about… enough to “outbid” the next guy. Hint: LISTED HOUSES are usually a waste of time. Unless you don’t care as an investment, and want to live in it. Owner occupants always pay more. Thank your lucky stars you didn’t end up with this turkey that will make you ZIP!
If you were a hundred grand off what the next guy would pay, you were looking at the wrong house. Find a house NOBODY wants, from a seller who has given up, and offer him a solution. “Dickering” is a word you shouldn’t even know.