I am new and getting nervous about my first buy
Cleveland, TN · Member since 2016 · 18 posts · 4 votes
First of all, thank you for reading.
I am 24 and I live in Chattanooga, Tennessee I have made my goals for the year ending 2017...to have one owned hack house and one investment property. I have access to 40k liquid and have spoken with hard money lenders about pursuing an interest only loan with the goal to refinance after 12 months. my problem is quite common. I am having issues finding deals. I just offered on a for sale by owner and it was shot down real quick (expected) My big question is (If you were in my shoes, how would you go about getting your first deal using creative financing? I have all the pieces lined up, but I feel like my market is tapped due to the high amounts of sellers increasing home values. should I be contacting landlords for portfolio properties, old run down houses, fsbo, or pre-foreclosures...offering to buy the owner out of their foreclosure?)
thanks so much for the input everyone!
Welcome @Jonathan Wooten,
You are in a great position and your goal can be accomplished with dedication and hard work! Which it looks like you already possess these qualities, you're on BP!
Don't get discouraged with getting shot down, you might find yourself putting many offers in before having one accepted. *Don't sacrifice being a wise investor to just get a property*
Problem: Finding Deals
Big Question: If I were in your shoes...
It is GREAT to find off market deals. Just be cautious when buying them as a new investor.
Don't give up Jonathan! You can do this!
Welcome @Jonathan Wooten,
You are in a great position and your goal can be accomplished with dedication and hard work! Which it looks like you already possess these qualities, you're on BP!
Don't get discouraged with getting shot down, you might find yourself putting many offers in before having one accepted. *Don't sacrifice being a wise investor to just get a property*
Problem: Finding Deals
Big Question: If I were in your shoes...
It is GREAT to find off market deals. Just be cautious when buying them as a new investor.
Don't give up Jonathan! You can do this!
@Jonathan Wooten - Cleveland/Chattanooga is not tapped out and is a great area in my opinion. You have to spend time searching for the right type of seller. Don't waste your time on mls or for sale by owner properties. Identify the area you want to invest in and start marketing to owners directly. You will find a motivated seller that way.
I have looked at the mls with a few Realtors,but not alot of options there in this market (so far) so I've looking at door knocking and direct mail. from those 2 things, what makes more sense and what do the numbers as far as acceptance to ask ratio look like? 1 in 100? 1 in 500? thanks guys
Jonathan,
Good for you. Sounds like you're doing all of the right things. I am house hacking in Chattanooga, and I found my deal on hudhomestore.com. It's the HUD website. I run the numbers on almost every Hamilton County property, and maybe 25% of them could make sense for an investor.These are also on the MLS, I think, though. I actually just checked it and there's not jack on there right now. I would also highly recommend the realtor that I used for my property. She is very professional, and her husband is an active investor. I didn't really know what I was doing my first time around, and they really guided me in the right direction. Her name is Deanna Lindsey. PM me and I'll see if I can send you her contact info. BP just kicked back my post because I tried to give you her phone number.
Best of luck!
Welcome to Bigger Pockets.
@Jonathan Wooten - acceptance ratios very on a multitude of factors, but here are some educated opinions:
Its real easy to market to potential sellers:
Maybe it's not the best time to jump in. Of course there are deals in any markets. But think how big advantages those well connected investors, like REIT companies and veteran investors, over you. It really takes luck and a lot of patience and time to find a good deal. My suggestion is to keep your eyes open and wait for some time.
zeke, I don't expect it to be easy, but I do expect to gain as much knowledge as possible through these forums and other outputs to increase my overall return by fixing mistakes in the beginning with time as opposed to future financial troubles by not asking
I'm glad to see that another 24 year old is perusing this path. I just purchased my first house hacking property about a month ago in Chattanooga. Deals are out there, so don't give up on looking. PM me and I can connect you with some people that have helped me out.