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 almost 4 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!!!
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