I'm looking for advice, encouragement, anecdotes, anything really that can help me find the spirit to keep at this.
We have had two seriously fantastic deals slip out of our hands at the last minute. I know, only 2 deals isn't that many, but both were literally one step away from being secured. The first one was one we had a back up offer on that was supposed to fall apart, but in the 11th hour the first buyer came through. This last one really hurt - seller financing deal. Seller loved our offer but passed because they decided not to sell after all. That one I had been working on for a solid month. Both of these deals together I have easily put in 100+ hours of work. The seller decided to pass due to all the uncertainty of COVID, politics, etc. I told them our offer stands, but it doesn't change the fact that we need something soon.
It really stings the most because we are looking to house-hack a 1-4 residential MF. We have a 4 unit all rented, a studio condo bringing in Airbnb income, but we are currently renting a 2bedroom in town. We have to live in one of the units, and it has to be a 2bed or more because we have a child. We have secured private money financing and even a financial partner. We are experienced, motivated, capable, I'm a REALTOR and I can't put it together.
The ease that we got our first deal has spoiled me, and I just feel like all the wind is out of my sails. Would love to hear other's stories if they have gone through this to help get me back up on the horse.
Two missed deals?
You're going to miss more than you get, maybe some quiet contemplation and reflection would help, but you need to be a little tougher.
The biggest mistake you can make is chalking up the second situation as a loss. You have a connection to the owner who is willing to finance and just decided not to sell? That's not a no. That's a not right now. Stay in touch so when they are ready to sell, you're the person they think of. We turned a rejected offer on a SFH into a portfolio acquisition with two years of follow up and I know an investor that still gets occasional leads from door knocks he did a decade ago.
You're seeing obstacles, investors see opportunity.
Keep in touch with the second offer. Eventually you'll get a good deal.
Let numbers drive the business. Don't be emotionally attached. I know that's easier to say than to do.
Think of it this way: if you made 2 offers, and they didn't close, then you aren't making enough offers.
Don't take the rejections personally. Stick to your numbers, make offers, follow up on the "hot" leads. Remind yourself of your ultimate goal, and look at the short-term goal. You got this!
@David A Lisowski For sure! We have an extreme inventory problem where I live and why I've only made 2 offers. Town of 11,000 people, and there are I think 3 active multi families on MLS right now? Its bare bones to start but I'm not giving up!
@Todd Rasmussen I agree. Its not a loss. I have done so much work and its not for naught - its actually created a lot of momentum in many ways. I think because this is a personal deal - I need to find a permanent home for my family and my child - its hard to not take it personally because I feel like I'm failing my family. But I can't let that mindset get in my head. Going to listen to some podcasts today to get back in the spirit
@Steve Morris I know I do. Its tough when things used to just be so easy for me (tiny violin!!). Our market never was very competitive, and now with COVID its EXTREMELY competitive, and I haven't adapted. The extreme lack of inventory, seller's hesitation for change, and simply living in a rural state (Vermont) makes it so that when I do find that screaming deal its like finding a great jewel. And both were so darn close to coming through. And as a realtor I fight tooth and nail for my client's deals, and I always thought that if I just out-worked everyone else, it would come together for me. And its not just for me, I'm trying to provide everything for my family right now so when I come up short, it feels like I'm falling short at being the provider.
So definitely some tough lessons. I was feeling down again this morning and decided to just let it go and try again. I need to find a new angle, and I haven't gone the direct mail campaign yet. I started thinking "Oh maybe I should change course and start looking at flips" but that doesn't make sense for us right now. So I have to stay tough and get leaner and meaner
If you are looking for a needle in a haystack, you are going to require patience. Try modifying what you are looking for if it doesn't exist. Look at neighbouring towns, change your search parameters a bit. As others said, stay in contact with the second seller.
@Kate Barry yes keep at it Kate as the others have said. I also am having difficulty up in Chittenden County. I have had several slip through the cracks and I am feeling it to. Perhaps we chat again and can provide each other with some accountability and support.
@Michael Dumont II I would love that!! My real estate career is also busier than ever so I think its just I'm at burnout, trying to handle it all at once. Sometimes I dream about just being a full time investor. Maybe someday!