Just checking in to share that I made my first offer on a SF property in Georgia this month on the 8th. It was listed at $165K, I offered $150K. Due to other offers they raised it to $169K, I resubmitted an offer at $155K, they then came down to $168K. I submitted a final offer at $155,499K. I ran the numbers using the BP calculators @ $150K, $155K, and $160K. Any higher and it would not meet my criteria for cash flow and cash on cash. ($250 per mos and 10% COC)
I learned that with the numbers and due diligence, it removes the emotion. It's free to make an offer, and I need to make more offers to win a deal that works for me. I did my homework, knew where I needed to be, and did not let the excitement and inexperience lead to paying too much. I also learned it's probably advantageous not to use round numbers when making an offer, for example... $151,346K VS $150K.
I'm excited to be learning the steps, and process to be a successful investor, and not use up my hard earned capital on deals that don't meet my criteria and move me closer to my long term goals. Excited to post more of my process to successful long term buy and hold!
Thanks to everyone I've learned from via the podcast, forums and great books!
Congratulations James!!! You passed the hardest test a REI has to pass. Understanding the difference between getting a property, and getting a deal.
Sometimes the best deals you make, are the ones you don't.
Thanks @joevilleneuve Good quote!
Now learn how to make the offer more valuable to the seller.... With out increasing price. The most common example would be short inspection period and 30 day close. Takes a little digging to find out why someone is selling but a good agent worth their weight in gold if they find out why.
@Matt K. Thanks for the advice!