Would you overpay for a deal? Most offers I put in for a deal(on market and off market) does not get accepted and that is ok with me. The first thing an Agent or wholesaler tells me is "You don't know the market" "its a sellers market" "the 75% rule or 80% rule for BRRRRs don't work anymore" My answer to that is "so what". I understand its a sellers market and there are bidding wars on everything and things are "not like they used to be". And I also know that insurance premiums are steadily going up, property taxes are high, and the cost for goods and services(contractors/materials/specialty techs etc) have gone up as well...The numbers are the numbers and if they don't work out, why would I overpay for something. I can afford to wait and be patient to find the right property with the right circumstances. For example, in the market I invest in, I found a deal for 30k less than what the avg fixer upper is selling for. I was in the right place right time, in the right situation with a motivated seller and got the deal. It obviously was a little luck involved in finding/getting this deal as well. I feel like if you be patient and continue to hunt for deals something will come along. Also I am still young in my investing career(only 4 properties so far) so my risk tolerance may be different than a more experienced investor. But I feel like some agents/wholesalers are reluctant to work with me or insult me by saying "I don't know the market" just because I'm not offering what everyone else is offering. I would really like to hear experienced investors and beginner investors opinion on this. Am I doing something wrong? Running my numbers too conservatively? Should I pay what the current market is demanding?

@Bruce Lynn I couldn't agree more. I look back at all the deals I missed because I was being cute trying to negotiate a few thousand dollars. As I have gotten more experienced, if I am excited about a property and the location and the numbers work, I try my best to lock the deal up. Especially for properties I intend to rent and hold. I don't have any regrets on deals I bought but have a lot of regrets on deals I missed out on a for a relative small amount money.

Would you overpay? Is there a such thing as "over paying"?

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

4y

I wouldn't trust a wholesaler, but that is just me. Yes you can overpay and you are right, you need to look at the numbers and see if the numbers make sense. You also need to be realistic (eg don't expect to get $500 a month in profit when the numbers for the area say $100 is realistic).

When you are putting in offers are they reasonable for the market or are the 75% of market value?

3 Reply

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

4y

I buy multiple properties per year regardless of market conditions. My criteria obviously changes as the market changes. Prices are double what I paid 10 years ago...but obviously no one is selling me a property based on what they were worth a decade ago. Your expectations need to adjust as prices continue to rise over time....because guess what, in 10 more years they I will be paying double what Im paying today.

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Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

4y

Too many people use todays rents against todays prices instead of realizing they are fixing the payment and the interest today while rents continue to increase. They also only count cashflow as the profit when withtodays prices more and more of the profit is the principle portion of the loan payment.

Insurance goes up about 5% so that’s an extra $3/mo. Taxes go up 3% so that’s an extra $5/mo. And then you raise rents $100 or $150/mo. Just figure in the average of $50-$100k price increase over the last year and you’ll be begging to pay 2021 prices next year. What if interest rates go up 1/2 of a percent? That will cost you $125/mo on a $300k property. That means if prices 8% your payment would be the same. And they won’t drop 8% you’ll be lucky if they only go up a few percent. With 25% down that’s a 12% return on your downpayment.

13 Reply

Jeromy Jordan

OP

Real Estate Agent · Biloxi, MS · Member since 2020 · 28 posts · 22 votes

4y

Originally posted by @Theresa Harris:

I wouldn't trust a wholesaler, but that is just me. Yes you can overpay and you are right, you need to look at the numbers and see if the numbers make sense. You also need to be realistic (eg don't expect to get $500 a month in profit when the numbers for the area say $100 is realistic).

When you are putting in offers are they reasonable for the market or are the 75% of market value?

So that's the thing, I'm not actually even running numbers based off any standard % rule. I just run them based off of actual fixed/variable cost for the area and tenant demographic. insurance premiums, county property taxes, variable cost such as vacancy, mx, cap ex etc. I'm not looking for $500 cash flow but I also don't want super thin margins either. One of my property insurance premiums went up the next yr to paying an extra $100 a month. Don't sound like much but when your cashflow is $300, that stings a little bit.

3 Reply

Jeromy Jordan

OP

Real Estate Agent · Biloxi, MS · Member since 2020 · 28 posts · 22 votes

4y

Originally posted by @Russell Brazil:

I buy multiple properties per year regardless of market conditions. My criteria obviously changes as the market changes. Prices are double what I paid 10 years ago...but obviously no one is selling me a property based on what they were worth a decade ago. Your expectations need to adjust as prices continue to rise over time....because guess what, in 10 more years they I will be paying double what Im paying today.

So Sir are you saying that you would consider appreciation over time a more important determinate on what you are willing to pay today more than cashflow? Due to asset values rising over time no matter what they are doing in the short run, you would pay what the market demands today? Would you consider inflation and other cost variables in your decision to purchase in today's market. For example how material cost have risen over 30% which also makes insurance premiums higher because now the cost to rebuild is much higher. I'm not challenging, I'm genuinely asking so I can understand from a more experienced person that's done this for a long time and been through various market conditions.

1 Reply

Joe VilleneuvePro Member

Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes

4y

Overpaying defined as what? PAying more than the market value? Paying more than the Asking Price? Paying more than what your analysis tells you is the maximum offer you should make based on your own criteria for a good deal?

The best way to answer this question is to define what the definition of "cost" is. There are two definitions:

1 - Total Cost of the property includes things like Purchase Price, loan interest, utilities, insurance, taxes, rehab, repairs, closing costs, etc... In short, everything it takes to buy the property plus everything it takes to own the property.

2 - Investor cost includes all the cash that comes out of the REI's pocket. Period. This includes the DP, negative CF, REI's contribution to pay down the mortgage principle,...anything that the REI pays for in cash

What makes a deal, is also two things:

1 - The cost (Cash out of pocket...see above) to the REI

2 - The terms where the rest of the Total Cost is paid for by someone/something else.

Profit is simple: Profit starts when the REI recovers all of their cost from the income in the property (cash flow). So, the lower the cost, the quicker the cost is recovered and profits are generated.

Back to the beginning, and my questions regarding the definition of overpaying. Taking in consideration the definitions of Cost and what makes a deal, the answer to the original question of, "is it OK to overpay", comes down to how that potential overpayment impacts how fast the REI's costs are recovered.

You can pay more than the AP, or the MArket Value, and still have a great deal, depending on the cost to the REI and the terms for the rest.

3 Reply

Jeromy Jordan

OP

Real Estate Agent · Biloxi, MS · Member since 2020 · 28 posts · 22 votes

4y

Originally posted by @Bill B.:

Too many people use todays rents against todays prices instead of realizing they are fixing the payment and the interest today while rents continue to increase. They also only count cashflow as the profit when withtodays prices more and more of the profit is the principle portion of the loan payment.

Insurance goes up about 5% so that’s an extra $3/mo. Taxes go up 3% so that’s an extra $5/mo. And then you raise rents $100 or $150/mo. Just figure in the average of $50-$100k price increase over the last year and you’ll be begging to pay 2021 prices next year. What if interest rates go up 1/2 of a percent? That will cost you $125/mo on a $300k property. That means if prices 8% your payment would be the same. And they won’t drop 8% you’ll be lucky if they only go up a few percent. With 25% down that’s a 12% return on your downpayment.

Sir so what I am gathering from your comment is that I shouldn't really worry about cost as much because rent increases will always outpace the avg cost increase of most expenses? What % profit margin do you normally feel comfortable with in your investment properties? I know its market dependent and this is kind of vague but would you say you bake in a certain profit margin so if expenses rise x amount percent you would be able to absorb that? The issue I am having with one of my properties is that the expenses went up but I am already at my ceiling for market rent so my profit has diminished. I'm still ok but that's because the deal worked out to be good enough for me to absorb those expenses(not by me telling the future, just luckily). What I am gathering in today's market is appreciation ramped up soo much that to even be competitive to get a property you have to chase the new market values/expectations. But how I feel is that this appreciation is not the norm and I will be getting something today that will bite me in the butt later. If I can find something a little bit below the median, I figure that will be a safer investment. Do you think my focus is on the wrong thing? I'm genuinely asking your perspective as a seasoned investor.

1 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

4y

Wow, that is an insane increase in insurance. I'm in Canada, but the the most expensive insurance for my rentals is $1200 a year (most are about $500).

Running the actual number is smart. Can you find an area where the property taxes or insurance rates are lower? I'd also look for duplexes or places with legal suites as your numbers are generally better for those.

2 Reply

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

4y

@Jeromy Jordan There is no magic formula ...and everyone on this forum will have different answers for you too. I think you're already got it - this is a funny game with lots of differing and even conflicting rules.

But in the end, you must do what feels right and pencils out for you. Both of those factors matter.

One property might have a skinny cashflow, but you sense that it is in a gentrifying area and will double value in 2-3 years. So in that case, monthly cash flow is not that important (as long as you're right about that appreciation that is :-).

Another place might be a dump, but you know if you spruce it up the monthly rents will increase 50%, thereby giving you a great monthly cash flow...

It's really property by property and intuition arguing with reason. And then there's Mr Murphy waiting on the sidelines.....

Be smart AND go with your gut....

7 Reply

Jeromy Jordan

OP

Real Estate Agent · Biloxi, MS · Member since 2020 · 28 posts · 22 votes

4y

Originally posted by @Joe Villeneuve:

Overpaying defined as what? PAying more than the market value? Paying more than the Asking Price? Paying more than what your analysis tells you is the maximum offer you should make based on your own criteria for a good deal?

The best way to answer this question is to define what the definition of "cost" is. There are two definitions:

1 - Total Cost of the property includes things like Purchase Price, loan interest, utilities, insurance, taxes, rehab, repairs, closing costs, etc... In short, everything it takes to buy the property plus everything it takes to own the property.

2 - Investor cost includes all the cash that comes out of the REI's pocket. Period. This includes the DP, negative CF, REI's contribution to pay down the mortgage principle,...anything that the REI pays for in cash

What makes a deal, is also two things:

1 - The cost (Cash out of pocket...see above) to the REI

2 - The terms where the rest of the Total Cost is paid for by someone/something else.

Profit is simple: Profit starts when the REI recovers all of their cost from the income in the property (cash flow). So, the lower the cost, the quicker the cost is recovered and profits are generated.

Back to the beginning, and my questions regarding the definition of overpaying. Taking in consideration the definitions of Cost and what makes a deal, the answer to the original question of, "is it OK to overpay", comes down to how that potential overpayment impacts how fast the REI's costs are recovered.

You can pay more than the AP, or the MArket Value, and still have a great deal, depending on the cost to the REI and the terms for the rest.

Thanks for the response. You broke that down really good! I think I heard a mic drop from here :)

so I think I should be looking at this different. I should be considering how these cost will effect me overtime and determine can I stomach those cost for a period of time based off my personal financial situations. And should be comparing these deals based on how long it will take me to reach a profitable state when considering if it's a good deal or not, basically the CoC return should be most important variable. So it seems like my problem is I'm measuring these deals too independently rather than comparing them to avg CoC returns of like kind properties in specific markets determined by market conditions.

Would you say that is a more appropriate way to answer the question of "overpaying" and what deal is worth really pursuing?

2 Reply

Axel MeierhoeferPro Member

Rental Property Investor · Escondido, CA · Member since 2017 · 684 posts · 550 votes

4y

I agree with @Bruce Woodruff and @Bill B. and what they describe.

When you say that $300/month cash flow "stings a little bit", it gives me the impression that you view a good deal mainly on the spread between the purchase price and the potential sales price in a few years.

I have been very blessed to have a wonderful group of mentoring clients and all of them have one thing in common:

They all want to make their investments to create a passive income portfolio.

They aim to reach what I call the 'Time Freedom Point' where they get enough monthly cash flow to not have to exchange time for money anymore or have a job.

They realize that they will need some patience but can realistically reach that point in about 8 years more or less, depending on the exact monthly amount they want to reach and how much income they can dedicate to what I call "The Ideal Investor Journey".

When they reach the Time Freedom Point, the mortgages on their properties will still have the same monthly charge and get paid by the tenant's rent. Most of the other expenses you listed will have only moderately increased.

As has been mentioned by Bill Brandt, rents will have steadily increased and pay more and more cash flow each year. What's most important, when my mentees reach their Time Freedom Point and they get $4000 or $5000, or $6000 a month in passive income this number will only keep increasing as they enjoy life more and more. At some point, some of the mortgages they originally took out will be paid off and cash flow will jump for each property.

Bottom line, they set the goal for themselves to build a passive income portfolio in residential real estate.

To decide which properties to buy, they look at mainly 2 criteria after a thorough due diligence process:

1. Does the property appraise +/-3-5% of the asking price (depending on the type of residential property SFR, duplex, Triplex, 4-plex)

2. Does the property cash flow after including mortgage payment, property management fee (typically 10% of rent), insurance, property taxes, 5% vacancy reserve, 5% maintenance reserve, 5% CAPEX reserve with at least $XXX?

I recommend $XXX should be at least $150/month but people set goals higher than that. Recently about $250 - $400/month has been achievable and if Bill Brandt is right, that number will keep increasing in the next few years.

If you keep looking at market price (ask) as your only measuring stick so you can sell in a few years with profit, I suggest you follow the lead of our Ideal Investor Journey system and set a percentage around appraisal value to guide you.

If you, as you mentioned, are still young with 4 properties (congrats, most young people are too afraid to even start), I hope you will aim for a long-term passive income portfolio that develops best if you focus on income performance and not so much on the purchase price.

Happy to discuss more. Feel free to DM me.

7 Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

4y

@Jeromy Jordan

You can’t use a profit percent because it goes out of wack with so many variables.

Property a) $50k, 100 year old, class d housing in the Midwest with a 10% profit margin, $5k per year. But you have lawn care, tornadoes and thunderstorms, snow removal, painting, high property taxes, high insurance, state income tax, high turn over, old fixtures, structure, appliances, plumbing, electrical, roof, etc etc etc.

Property b) is a $400k, 2 year old class b housing in the southwest with a 5% profit margin, you’re making $20k per year. But you have zero lawn care, snow removal, tornadoes, painting, very low property taxes and very cheap insurance with no state income tax and everything is new.

Yes, it’s 8x the price and you’re only making 4x the money, but it is as close to passive as you can get, and you need 1/4th as many properties and tenants. With a dozen properties I don’t spend 2 hours a month dealing with them, and most of that is bookkeeping. There is no expense that’s going to skyrocket or come out of nowhere. For 20 years insurance has gone up between 4-8% per year. It runs about $600/yr for a $400k property now with 500/500k limits. Property tax goes up 3% per year and it runs about $1800-2200/yr. There are no roof repairs, no painting exteriors, no weather issues,

Imagine you put down 25% and literally just broke even for 20 years until you paid the property off. It will have at least doubled even if you buy at the peak, in one of the most extreme bubble cities as a couple, of my properties were. That means you’ve made 700% on your downpayment. Not too shabby.

Use your rental properties as your retirement vehicle. If you need your properties to produce a positive $100 or $200/mo cashflow you’re not in a good position to invest in real estate. That’s $1200-$2400/yr. That’s one kitchen appliance, 1/2 of an ac unit or 1/4th of a roof. Heck it’s probably one month’s vacancy or one turnover.

I’m sorry it kind of went on a wandering disaster there. Try to find one valid point and concentrate on it, or ignore the whole thing. I’m almost deleted it instead of posting but it woulda felt liek even more of a waste. I just feel like you have way more control over real estate than the stock market or gold or crypto, and you can’t have it in cash. GL with whichever path you choose. Btu get started, it won’t be easier 5 years from now.

5 Reply

Joe VilleneuvePro Member

Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes

4y

Originally posted by @Jeromy Jordan:

Originally posted by @Joe Villeneuve:

Overpaying defined as what? PAying more than the market value? Paying more than the Asking Price? Paying more than what your analysis tells you is the maximum offer you should make based on your own criteria for a good deal?

The best way to answer this question is to define what the definition of "cost" is. There are two definitions:

1 - Total Cost of the property includes things like Purchase Price, loan interest, utilities, insurance, taxes, rehab, repairs, closing costs, etc... In short, everything it takes to buy the property plus everything it takes to own the property.

2 - Investor cost includes all the cash that comes out of the REI's pocket. Period. This includes the DP, negative CF, REI's contribution to pay down the mortgage principle,...anything that the REI pays for in cash

What makes a deal, is also two things:

1 - The cost (Cash out of pocket...see above) to the REI

2 - The terms where the rest of the Total Cost is paid for by someone/something else.

Profit is simple: Profit starts when the REI recovers all of their cost from the income in the property (cash flow). So, the lower the cost, the quicker the cost is recovered and profits are generated.

Back to the beginning, and my questions regarding the definition of overpaying. Taking in consideration the definitions of Cost and what makes a deal, the answer to the original question of, "is it OK to overpay", comes down to how that potential overpayment impacts how fast the REI's costs are recovered.

You can pay more than the AP, or the MArket Value, and still have a great deal, depending on the cost to the REI and the terms for the rest.

Thanks for the response. You broke that down really good! I think I heard a mic drop from here :)

so I think I should be looking at this different. I should be considering how these cost will effect me overtime and determine can I stomach those cost for a period of time based off my personal financial situations. And should be comparing these deals based on how long it will take me to reach a profitable state when considering if it's a good deal or not, basically the CoC return should be most important variable. So it seems like my problem is I'm measuring these deals too independently rather than comparing them to avg CoC returns of like kind properties in specific markets determined by market conditions.

Would you say that is a more appropriate way to answer the question of "overpaying" and what deal is worth really pursuing?

Kind of. CoCReturn only measures the first year. The goal is to recover all of your cost quickly (I want mine back within 3 years...5 at the most, or I don't buy it, or I arrange the terms so that I have a lower DP and spread the rest of the property costs to others. This really means you have to understand how money works, so you can design the appropriate strategy (that's really what we're talking about here) needed to make a deal happen. This NEVER includes negative cash flow...at any time...and low CF is just negative CF waiting to happen.

The strategy used is completely dependant on how the cash flow is to be used. Getting a % return tells you nothing of value. What does that return mean in specific dollars? What is the purpose of those dollars which dictates how many dollars are required as cash flow.

If this is a little confusing, PM me for a more detailed explanation.

2 Reply

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

4y

Quote from @Jeromy Jordan:

Originally posted by @Russell Brazil:

I buy multiple properties per year regardless of market conditions. My criteria obviously changes as the market changes. Prices are double what I paid 10 years ago...but obviously no one is selling me a property based on what they were worth a decade ago. Your expectations need to adjust as prices continue to rise over time....because guess what, in 10 more years they I will be paying double what Im paying today.

So Sir are you saying that you would consider appreciation over time a more important determinate on what you are willing to pay today more than cashflow? Due to asset values rising over time no matter what they are doing in the short run, you would pay what the market demands today? Would you consider inflation and other cost variables in your decision to purchase in today's market. For example how material cost have risen over 30% which also makes insurance premiums higher because now the cost to rebuild is much higher. I'm not challenging, I'm genuinely asking so I can understand from a more experienced person that's done this for a long time and been through various market conditions.

Locking in as much low cost debt, coupled with owning high quality assets in high quality locations is the only thing that matters to me. I dont really care about a couple hundred bucks a month in rent plus or minus as thats such a tiny part of the equation.

Im sure most of the people in these forums wouldn't touch the properties Ive bought over the last decade plus even if I told them theyd make millions from them.

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7 Reply

Rod HanksBusiness Member

Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes

4y

Don’t be a motivated buyer

Don’t ever be a motivated buyer

Don’t ever ever be a motivated buyer

Counting on appreciation is dangerous

Expecting to get a deal that makes sense from an agent or wholesaler is non sense.

Find a motivated seller and you will get a deal that makes sense. Market for your own deals and you won’t ever have to worry about overpaying and counting on appreciation to bail you out. There are plenty of deals out there you just have to market for them. I get 50-70% deals consistently from my marketing.

Rod Hanks Insurance4.9156 Reviews

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7 Reply

Jim K.

Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes

4y

In every up market, everyone with a general interest in seeing properties sell for higher prices (real estate agents), will champion spending more on houses.

3 Reply

Lesley Resnick

Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes

4y

It is a fact net operating income are down on new purchases, all thing being equal. I am generally not a big proponent of looking at appreciation, but given the rise last year and the projected 20% this year... It is also expected that rents will increase as well. This is note-worthy. This is a long game and no one ever loses money in real-estate. The only issue is the holding period and can you stay afloat that long? Prices are now higher than they were in 2007 by a significant factor.

This market requires a lot more subjectivity than it has previously. What are the factors that are going to make this a good long term rental? Location, schools, new construction in the area, etc. Would you be comfortable owning this in 10 years?

The last issue to consider is where else will you put your money, Stock Market, Dogecoin? Savings Account? The batteries in my crystal ball are running low. I don't know where housing or other investments will be in a year, but I know I am sticking to my long term buy and hold strategy and it allows me to sleep well at night.

3 Reply

TJ Hess

Member since 2020 · 4 posts · 2 votes

4y

@Rod Hanks Mind expanding on your marketing strategy?

1 Reply

Tommy Ray

Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 139 posts · 128 votes

4y

Yes. Why? The highest and best use of the property may not be what others are seeing. So my offer will be based on that. Many agents do not understand what could be done with a parcel or a building. Outside of the box thinking is required to develop derivative business models.

1 Reply

Account Closed

Rental Property Investor · Savannah, GA · Member since 2014 · 298 posts · 67 votes

4y

I think the cashflow is more important than the price.

1 Reply

Luke AndersonPro Member

Rental Property Investor · Enterprise, AL · Member since 2016 · 166 posts · 117 votes

4y

@Jeromy Jordan I would not over pay for a property just to have the property. If the numbers don't make sense, they don't make sense. You don't want to put yourself in the poor house over the next 3-5 years on a deal waiting for a payoff 5-10 years down the road. Right now the market is crazy and for MLS buyers, it is time to sharpen the tools of other strategies (auctions, direct to seller marketing, etc.). Those MLS sellers will get the money they want for their properties, but that doesn't mean you have to be the one that gives it to them. My numbers may get tighter during these cycles so I'm not getting a sweetheart deal, but as long as I can make the numbers work I will buy. I would continue to stack cash and be ready when the market swings the other way, but don't stop looking. Everything with real estate is cyclical. And one thing I always keep in the back of my mind is what Warren Buffett once said, "Be fearful when others are greedy, and greedy when others are fearful."

2 Reply

Ben Clabaugh

Member since 2018 · 3 posts · 3 votes

4y

"appreciation is not the norm and I will be getting something today that will bite me in the butt later."
Ding-ding-ding. That is the question that needs to be considered. Who remembers 2008-2009? Before that, prices were up, up, up, always up. People were winning bidding wars, paying over asking, rehabbing, and selling for big profit in 6 months. Sound familiar? Then the market crashed and values dropped 50% or more - basically back to the 2003 level. Will a crash like that happen tomorrow or next month or next year? Who knows? The point is, the market does not always go up, all the time, forever. This market WILL adjust, it's just a matter of when. So how do you balance being aggressive and making the most of the market now without setting yourself up to lose next time the market "adjusts"? If anyone knows, please let us all know.

2 Reply

Ben Clabaugh

Member since 2018 · 3 posts · 3 votes

4y

"appreciation is not the norm and I will be getting something today that will bite me in the butt later."
Ding-ding-ding.
That is the question that needs to be considered. Who remembers
2008-2009? Before that, prices were up, up, up, always up. People were
winning bidding wars, paying over asking, rehabbing, and selling for
big profit in 6 months. Sound familiar? Then the market crashed and
values dropped 50% or more - basically back to the 2003 level. Will a
crash like that happen tomorrow or next month or next year? Who knows?
The point is, the market does not always go up, all the time, forever.
This market WILL adjust, it's just a matter of when. So how do you
balance being aggressive and making the most of the market now without
setting yourself up to lose next time the market "adjusts"? If anyone
knows, please let us all know.

1 Reply

Charles Mouille

Homeowner · Metairie, LA · Member since 2014 · 7 posts · 3 votes

4y

If the numbers work I will submit an offer to purchase. No matter how the market is always remember your numbers must work. Be patient your property is out there with the right numbers of course.

1 Reply

Peter TverdovBusiness Member

Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes

4y

I'm a broker and also an investor. It's not about over paying. The market is the market. If everyone is going to pay asking or a little bit more and you keep wanting to offer 10% under, you are wasting your time and mine.

Everyone has a different perspective a value and ROI. I personally paid 12k over asking on a 2 family and got it under contract in 2 days of being on the market. A broker and seasoned real estate pro paying over asking in 2021. The deal works for me and worked for other people too.

[email protected]732-289-3823

4 Reply

Would you overpay? Is there a such thing as "over paying"?

Would you overpay? Is there a such thing as "over paying"?

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