- Houston, TX
- Votes |
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?