It's time for my 1st Deal and I'm Nervous

Buying & Selling Real Estate
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It's time for my 1st Deal and I'm Nervous

Christy Glenn
Investor · Brighton, TN · Member since 2013 · 78 posts · 17 votes
I have done a lot of work and started my Real Estate Investing business. It's time to do my first deal. I am going to look at it today and make an offer. I'm soooooo scared, NERVOUS..... Whatever you want to call it........excited. I hope I don't say the wrong thing! The next thing is post for a CPA in Memphis area.....any suggestions?
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Steven Hamilton IIPro Member
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
12y

Do not feel like you need to use someone local. Many of us accountants have clients worldwide. Payroll, bookkeeping, etc can mostly be done remotely.

Here is a great list of questions to ask a potential accountant:http://www.biggerpockets.com/forums/51/topics/70447-questions-to-ask-a-cpa

Also check out the www.NAEA.org page in your search. It should help you find someone local. If someone comes to me, I'll send them your way.

If you need help in your search or want to verify something don't hesitate to ask.

I have clients worldwide and things are just as easy as I e-mail them, talking on the phone. I even use Skype and TeamViewer to communicate with clients so I'd highly recommend looking for one of the best with great references that interviews well with you. So look for someone you can connect with that works out for your situation.

[email protected]224-381-2660
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  • Justin B.
    Investor · Gaithersburg, MD · Member since 2013 · 659 posts · 441 votes
    12y

    It's normal to be nervous. Just make sure to run the numbers and make sure they come out to exceed your minimum requirements. Also, the best thing I can suggest is don't look at it from a "whether or not you like it" point of view. Make sure it's in rentable condition (or find out what it would take to get it that way and adjust your offer accordingly) and if an SFR make sure it matches with other houses in the area (i.e. don't buy a $200k+ house in an average $100k community).

    Also, please be comfortable with where you are. For an SFR, If you don't feel completely comfortable floating this purchase for a year without any renters, you're looking in too high of a range. For MFR, use a conservative vacancy rate and make sure you're ok floating it at that price as well.

    And my biggest piece of advice is, if your gut tells you something is wrong or you don't feel comfortable (for whatever reason), listen to it. Your gut feeling is right 9 times out of 10.

    0Reply
  • Scott E.
    Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    12y

    Cristy -

    Are you looking at the property for a flip or buy & hold? As @Justin B. suggests, just make sure the numbers work. There are proven formulas to work by here on the forums that i'm sure you are aware of. If the math makes sense, you have a trusted team in place, and available funding, then it's time to make some money!

    0Reply
  • Mike Hansen
    Naperville, IL · Member since 2014 · 35 posts · 6 votes
    12y

    You can do it Christy! I'm new to this too...

    These guys nailed it - numbers, location, and that final "gut feel" have lead me right for 3 deals now....

    Fortune favors the bold! CLOSE IT

    Mike

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y

    Well done @Christy Glenn

    Just submit those offers and be patient until the right deals comes along.

    Have a great day.

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    0Reply
  • Christy Glenn
    OP
    Investor · Brighton, TN · Member since 2013 · 78 posts · 17 votes
    12y

    Thanks for all of the responses; all great advice. I have the funding and everything in place.....just trying to find the right property.

    Thanks, again!

    Christy

    0Reply
  • Zelda Sheldon
    Nashville, TN · Member since 2013 · 21 posts · 3 votes
    12y

    Hi Christy

    WOW great responses and awesome advice right here in this forum. I'd also love any links to buyers formulas for buy and hold SFR and MFR because those numbers don't lie. Here's another other thing I'm finding - especially in the Memphis market - is property performance. Your numbers can be spot on but first talk with a property manager who is super experienced in your property region and ask what it takes for your kind of property to be in demand for renters. I'm hearing in my market that some rental properties can sit empty for months because the properties are just not competitive enough to perform well and the managers have to discount rents and offer 1 month free rent etc. This erodes your profits. But once you get all the numbers right and you've confirmed it's good as a renter then you'll be confident to make offers.

    0Reply
  • Dennis Nemitz
    Billings, MT · Member since 2013 · 102 posts · 11 votes
    12y

    Make sure you have plenty of extra money for rehab, vacancy, and emergencies. I bought my first property and promptly had to put $10,000 into rehab. Then it was done in December so I am having some trouble filling it in winter. Fortunately, I bought it for a good price, and had money put aside.

    0Reply
  • Christy Glenn
    OP
    Investor · Brighton, TN · Member since 2013 · 78 posts · 17 votes
    12y

    Thanks, it is all great advice. I didn't realize but I double posted the same link. Anyway, in the end, the property was not for me at this time. If I had a larger team, namely, trustworthy contractors I think I would have considered it more. Oh well, there will be more.

    Thanks again for the response, good day!

    Christy

    0Reply
  • Steven Hamilton IIPro Member
    Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    12y

    Do not feel like you need to use someone local. Many of us accountants have clients worldwide. Payroll, bookkeeping, etc can mostly be done remotely.

    Here is a great list of questions to ask a potential accountant:http://www.biggerpockets.com/forums/51/topics/70447-questions-to-ask-a-cpa

    Also check out the www.NAEA.org page in your search. It should help you find someone local. If someone comes to me, I'll send them your way.

    If you need help in your search or want to verify something don't hesitate to ask.

    I have clients worldwide and things are just as easy as I e-mail them, talking on the phone. I even use Skype and TeamViewer to communicate with clients so I'd highly recommend looking for one of the best with great references that interviews well with you. So look for someone you can connect with that works out for your situation.

    [email protected]224-381-2660
    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    12y
    Originally posted by @Zelda Sheldon:

    Here's another other thing I'm finding - especially in the Memphis market - is property performance. Your numbers can be spot on but first talk with a property manager who is super experienced in your property region and ask what it takes for your kind of property to be in demand for renters.

    -----------------

    Great comments, Zelda and so true for investors really in any market. We are managing just shy of 2,200 properties in several markets with the largest piece of that portfolio in Memphis. It is so interesting to note how small details really do make the difference. Numbers are nothing more than ink on a spreadsheet and even the most super conservative assumptions can be wrong if the details of preparing and managing the property are not covered correctly.

    I really liked that you advised to ask that question about what it takes to make your property a "property in demand". That is a great question for an out of area investor!

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    0Reply
  • Zelda Sheldon
    Nashville, TN · Member since 2013 · 21 posts · 3 votes
    12y

    Hi Chris

    Thanks :) Are you connected to Memphis Invest?

    0Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    12y

    @Zelda Sheldon

    Chris is one of the co-founders of their company.

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    1Reply
  • Zelda Sheldon
    Nashville, TN · Member since 2013 · 21 posts · 3 votes
    12y

    Thanks Curt. I knew that name was familiar. Hi Chris. I've just enjoyed reading a book called Reverse Wholesaling by Kent Clothier.

    0Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    12y
    Originally posted by @Zelda Sheldon:
    Thanks Curt. I knew that name was familiar. Hi Chris. I've just enjoyed reading a book called Reverse Wholesaling by Kent Clothier.

    Hi Zelda,

    I missed your question so I apologize for my late reaction. @Curt Davis is with another quality group here in Memphis, so I appreciate him answering for me. My brother Kent wrote that book as really one way of telling the story of how we developed our company. We have a history of using that exact method even when our family was in the grocery arbitrage business.

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