What goes around comes around…(long) - Posted by Glenn-PA
Posted by Glenn-PA on December 12, 1999 at 07:43:07:
I’m a part time investor in a small town with a few properties under my belt. Each deal I’ve done has been profitable. When first starting several years ago I called on a duplex listed by a realtor. The realtor turned out to be the owner and the price was very high. He said that he’d rehabbed the property from top to bottom. He told me of the enormous potential of this property. I told the realtor I was an investor and that I was looking for underpriced properties to rehab and resell. We agreed that the duplex wouldn’t fit my game plan however he invited me to make an appointment to look over MLS properties. I accepted and met him a few days later. As we looked through the MLS the realtor told me he was experienced and knowledgeable. He told me the duplex I had called on was his first rehab but he had been in real estate for years; if I would follow his advice we’d both make lots of money. After a while it was apparent that this realtor believed a good deal was a full listing price offer. When I told him I only buy at a discount, he became irate and proceeded to tell me I didn’t know what I was doing and that I’d be taken to the cleaners. Actually, in retrospect, he seemed to take great delight in telling me I was dreaming and that the deals I was looking for didn’t exist. I held my tongue and politely ended the meeting.
Since that meeting, I’ve completed three rehabs, sold a fourplex I owned for a 21K profit, and bought a vacation home with owner financing at 5% interest. I paid 50% FMV or less for each one (excluding the fourplex). By my third rehab, I’m a cash buyer and don’t need loans anymore (at least in the price range I deal in).
What goes around comes around…in the next month I’ll be going to an auction of a duplex that I called on a few years ago. It seems that the realtor that owned this property over-repaired and was in far to deep. I’ll have a cashiers check in my pocket for the 5k I’ll need to plunk down if I’m the winning bidder.
Thanks to everyone on this site for the support.