If the numbers are good.... Do you ALWAYS buy???

4 Replies

Hey BP,

Wanted to get this discussion going and see what your thoughts were?

If the numbers are good, do you always buy???  Why or why not??

@Cassidy Burns Not always, but it definitely helps! However, even if a potential deal looks great on paper, multiple exit strategies are important. If it's a great fix/flip property and looks great on paper, but then miscellaneous issues arise during the demo and you go way over budget and you would lose money on the flip, it would make the overall deal a much better deal if an exit strategy of renting it out and still cash flowing was an option! It's all about your end goal, and being able to pivot when necessary :)

Always buy No. always lock it up Yes! Learn about wholesaling. The thing I know about wholesaling is this. New investors think this is the first place to start because it's the easiest. I think it's the hardest. It is a full time business to make any money at. But it's so important for real estate investors to understand the concepts of wholesaling. I have wholesaled many properties - like your post suggests where I found a great deal but didn't want for myself - but I do not consider myself a wholesaler. Worst case when you find a good deal, find a real wholesaler and split the profits with them and learn how they do it. There are plenty of real wholesalers on BP (and plenty of wanna by - so be discerning).

@Cassidy Burns Short answer: no. I buy out of state so I've always built pro-formats and at least attempted to stress test my assumptions before flying out. That said, there are have been plenty of properties where the photos representing the property are accurate but it's much worse in-person. The avoided taking photos of the one unit that just happened to have water damage. You think you might be witnessing drug use on the front stoop. In short, what looks good on paper doesn't look good when you're actually in the field. I'm sure someone else will buy those properties because the numbers look good, just not me. For me it takes more than numbers to meet my investment criteria.

Hmm  easy answer NO  the prices and numbers are not the only thing that is important. I am in Ontario so everything I do is out of state If i don't have a strong team on the ground I buy nothing no matter how good the numbers are. I am privileged to have a couple of great team in Ohio  and that makes investing  possible. Things that look good on paper  often don't when one walks  the property  and checks out the neighborhood. Not only much the price be good the house be right but it has to be in the right location.