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?
Keep at it @Vinny Gaines you'll find a deal that works.
@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 about 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 been there and done that mistake!
@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!!!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!