1st Real Estate Investment

5 Replies

What are the basics things I need to have or be capable of attaining in order to start investing in real estate? What odds and ends would I need to address? And 1st investment stories if you have any.

Thank you,

Wesley Crow

Hi, you cant be afraid to low ball an offer even if your agent says the seller will never except.  I bought two properties successfully using that strategy.  The first property that I bought that way was selling for $440,000, but he did not do any upgrades and had to move out of state.  I waited two months and no body put offers in. So I put an offer in at $320,000.  I figured he would come back at $350,000, but he countered at $340,000. I took it!!  The second property was in the mountains in Southern CA and was selling for $84,000.  I drove up in a blizard because the realator said the owner just wanted to get rid of it and I got that for $54,000.  It was in perfect rental condition.  Did not have to do any work what so ever.  I rented it out for a yea,r and when the year lease was up I sold it for $120,000.  I put that profit into the house I'm living in today.

Hope that helps you.  Also, if you choose to flip, be aware of hidden costs and make sure you do the numbers properly.  Do your research on all the hidden costs that realtors do not enclose.  Remember, they just want there commission.  It is up to you to do the research.

Melissa

Hi All! 

Have any of you explored the Philadelphia market??

CJ W

Originally posted by @Melissa W. :

Hi, you cant be afraid to low ball an offer even if your agent says the seller will never except.  

I wish I had done this/received this advice, so I second it. I thought I was negotiating well (25K below asking, and 80K below tax assessment), but the prior owner/investor did not keep anything well maintained, and I saw the 25K I was so proud of having "saved" myself quickly disappear in repairs.

Originally posted by @Dawn Johnson :
Originally posted by @Melissa W.:

Hi, you cant be afraid to low ball an offer even if your agent says the seller will never except.  

I wish I had done this/received this advice, so I second it. I thought I was negotiating well (25K below asking, and 80K below tax assessment), but the prior owner/investor did not keep anything well maintained, and I saw the 25K I was so proud of having "saved" myself quickly disappear in repairs.

Don't beat yourself up Dawn these things happen.  The positive outlook is that you will know to estimate your repair costs and other costs at a higher percentage.  I have the luxury of having a General Contractor in my pocket, which is my husband.  Most General Contractors will come look at the property and give you a free estimate.  Just make sure they come highly recommended. There are so many unethical contractors out there. 

I wish you all the luck in your next venture, and I know it will only get better as you learn from your mistakes.

Melissa

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