OfflineWell yesterday/today I had my REA start putting out my first 14 offers. It's funny, I've been reading the books (and not just Dean's), surfing through the forums, talking with agents,brokers, and anyone else who could offer some nuggets of info. so I thought I was ready to take the leap. Then I stood on the edge and looked down and actually got some butterflies. It's not easy to say out loud (well in writing) how "un-manly" I felt lol. And, I'm not usually one to scare easily. Don't really know what I'm afraid of, it's not like I've got a nickle to my name that needs protected lol. Not haveing much also means you don't have much to loose. So, I went ahead and jumped. Don't really know if I understand the whole process enough (thought I did till i jumped lol), only have a couple of friends who said they "might" buy, don't have any financing lined up, but I went and jumped anyway. I just figured that my offers were so low that I was just "practicing" making offers. My REA had me copy a check 1K to go along with all the offers, so if any of them actually get accepted I'll only have a couple of days to figure out what to do with my "success" lol. But, I went ahead and jumped anyway. So, this afternoon I get an email from my REA that says one of my ridiculously low offers wants me to fill out and sign the "Investors disclousure agreement" before they would respond and would I "please advise". I had the REA put that in all the offers as a stipulation, the seller had to sign the "investors disclosure agreement". We sent that along so they would know what the heck we were talking about. So know I'm trying to figure out if I've actually got a live deal that I don't know what to do with. Yahoo, Zillow, and tax assesments all put the house between 300K and 340K, the asking was 240K, I offered 178K. They didn't balk at the 178K they want me to fill out and sign the "IDA". Maybe I should have thought about a parachute before I jumped (I think you seasoned pros call it an exit strategy lol). Ok I'm off to search through the forums to see if I can figure out what to advise my REA.
Have a great day everyone, and good luck in all your deals,
Randy
Congrats on taking your LEAP!!. I know it's hard to hince why I'm still standing here staring at the ledge wondering if I should jump. I'm sure once you start and hopefully get that first deal done you'll look back and think that wasn't so bad. Anyways GL on your deal and congrats also remember that we are here to help you out so please keep us up to date on how your doing.
Must make sure you add an addendum with your exit clauses or contingencies e.g. Inspection or Subject to Buyer's partner's approval.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Congratulations on taking the leap of faith and jumping in. You may want to review the deals and see if any may accept or present a counter offer to you. As you stated it is very important to know your exit strategy for each property. This will help you determine what you may want to offer on a property. Some helpful tips for goign forward:
1. Get to know the market of your local area. Try not to jsut totally rely on zillow and yahoo for sale.s Ask you REA to provide comps of similar home sales in the past 6 months.
2. Contact a few appraisers in your area and inquire if there are any hot areas near you or areas on the decline. You can identify yourself as a new investor and your success may create more business for the appraiser. Show a win-win situation
3. Build your buyers list and determine what will sell at what price
4. establish the margin you hope to buy properties such as 50% of FMV. Just make sure you calculate purchase price plus repairs, carrying costs, etc when reviewing the deal and your exit strategy
5. Know your exit strategy before making an offer. Try to determine if you will hold, sell, flip or assign the property deal you are considering and then run the numbers to determine margins of the deal.
I hope this helps. Good luck with REI. Believe and Achieve!
- Joe
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