DONT BE TOO THIRSTY!!

7 Replies

Just figured to share what happened to me...

I had to decline submitting an offer with an agent today because I felt the margin was too close. I wanted to badly put this deal in contract today as my first deal but couldnt.

Although I'm putting zero into the deal financially, I am putting in the sweat labor of finding a good deal. 

I found a deal that I thought was good at one point however because of a miscalculated rehab cost by the realtor in comparison to the true rehab estimate by the gc's, the margins became closer than I felt comfortable with for my partners money. 

I told her that I would treat her money as my own and we agreed to the points of bowing out of the deal. I explained our position to the realtor and gc's ..all was good.............on to the next one...got 2 lined up!! Theres always another deal.

I was eager on my very first deal, and looking back, I realize now it was not a good deal.  Luckily, my plan was to buy and hold.  I still have the property today and it's close to being paid off.  In the beginning, I failed to calculate all costs involved, not just the repair costs.  Their were little things like the electric bill during a winter rehab, real estate commissions, etc... 

Patience is key :)

What kind of estimated margins did you have on the deal? Was it an extensive rehab where you thought you'd see surprises? 

@Vinny Gaines  Very good attitude, treating you financiers money exactly as you want to treat your own; and knowing when to walk away is half the battle, in this case: battle won. Cheers...

Updated over 3 years ago

Oh, just noticed my typo; should be ..."treating your financiers money exactly as you want to treat your own"... In the words of Spock (Leonard Nimoy, R.I.P.): Live long, and prosper...

There is always another one to close on.Patience is a virtue

@Vinny Gaines   Last time I toke my realtor's advise/input on a rehab i worked my ..ss off for 4 months and broke even on the property. And  my realtor friend made two easy commission(buy/list) of about $22,000!

And he was a good friend was not out there to screw me. I did take a while for me to realize that he is not a rehab expert rather a sales expert! 

Good luck to you be persistent it does pay off soon!!!

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