Keeping the faith after multiple rejections...

Buying & Selling Real Estate
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Keeping the faith after multiple rejections...

Kate Barry
Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes

Hey BP

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.  

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Todd Rasmussen
Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
5y

@Kate Barry

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.

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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    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.

    3Reply
  • Todd Rasmussen
    Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Kate Barry

    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.

    6Reply
  • David A Lisowski
    Rental Property Investor · Inlet Beach, FL · Member since 2018 · 199 posts · 111 votes
    5y

    @Kate Barry

    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!

    1Reply
  • Kate Barry
    OP
    Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
    5y

    @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!

    2Reply
  • Kate Barry
    OP
    Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
    5y

    @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

    0Reply
  • Kate Barry
    OP
    Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
    5y

    @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

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    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.

    0Reply
  • Michael Dumont II
    Investor · South Burlington, VT · Member since 2015 · 76 posts · 38 votes
    5y

    @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.

    0Reply
  • Kate Barry
    OP
    Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
    5y

    @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!

    0Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    What you described is literally the story of a successful real estate investor in the making but without the last chapter in which you actually buy a property and WIN. 

    The tip is to keep pushing through the noise and the deal you are so seeking will "fall on your lap". Some of the best deals are the deals we never closed on!

    You keep pushing on and you will get that deal! Don't lose faith, stay at it. 

    1Reply
  • Shane Cloutier
    New to Real Estate · Dalton, NH · Member since 2020 · 116 posts · 64 votes
    5y

    @Kate Barry in my opinion, one of the biggest flaws that entrepreneurs in all fields have is trying to do too much themselves. If you can create a system for your process you can bring in someone to help you that can follow your system. With them following the path you setup you can easily check in on them and see if they are on the right path as well as being able to help without to much hassle. The process of setting up a system will also increase your efficiency in your own work. 

    1Reply
  • Steve RozenbergPro Member
    Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    You will learn, that the ONLY way this works is through massive action. That means hearing and saying NO more than YES. You will learn much more from the losses than you ever will from your wins. I would suggest if you failed at getting a deal, then go back and analyze why this happened and what you could do differently next time. 

    Just as success leaves clues and trail for you to follow, so does failure. There are many many lessons and gold nuggets from your failures if you're open to learning them to make yourself better. The question is if you are truly wanting to learn and willing to put in the massive effort it takes to be successful in real estate. That is something only you can answer

    2Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y

    @Kate Barry

    You have to expand your deal pipeline under these straitened circumstances. @Mike Dymski is really the guy here who says the wisest things about that. You need more deals to look at. You can't be sitting on the MLS and hoping for the best in a community that small.

    2Reply
  • Dennis Wayne
    Member since 2020 · 339 posts · 356 votes
    5y

    Being a realtor is actually a hinderance in many ways in my view . It doesn’t entitle you to get a great deal or help you best I can tell . I’m sure it’s defeating but If your making offers on deals your finding on the mls then it’s no wonder your frustrated ! Look there’s no good deals on the market and it’s super competitive. I have no clue why anybody would be so dumb as to pay full retail price and then fight over scraps with other sharks . All the good deals are created off market .

    As far as rejection goes you might as well get over that right now if you want to scale ! The more” no’s” the better and sooner youlll get to “yes “. Get comfortable with rejection if you want to succeed in this business . I’m told no probably 85% of the time and that’s with motivated sellers and I’m ok with that . You have to decide in your mind most deals fail ,It’s why you need a ton of deals lined up because the overwhelming majority of these will fall through . Expect that ! It’s going to happen , it’s part of the process .

    0Reply
  • Kate Barry
    OP
    Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
    5y

    @Ola Dantis  Thank you for the encouraging words!! I am back at it - I've got another showing set up this week for another off-market property.  I know that real estate never stops

    1Reply
  • Kate Barry
    OP
    Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
    5y

    @Dennis Wayne Oh yeah I'm not even close to looking at the MLS. All the MFs on the MLS have been on the market at least 30 days because they're so overpriced. And they all come with tenants paying below market value, and you can't turn them over due to COVID. And we need at least one of the units vacant so that we can move into it. I definitely got to get leaner and meaner.

    Thank you for letting me know your rejection rate, even with motivated sellers.  Thats good perspective to keep

    0Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Well, you don't learn as much from your successes as you do your failures.  Missing your first two tries with no experience is nothing.

    0Reply
  • Kate Barry
    OP
    Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
    5y

    @Shane Cloutier agree with you 100%!  I''m onboarding 2 new agents to my team to help with the workflow, take some pressure off of me with the unending leads coming in.  So many great ones have come from this very forum! Its another reason why I want to get a deal done so we can have our permanent housing for as long a we need.  We currently are on a month to month rental that is somewhat open-ended, however it burns my soul paying rent when we used to house-hack

    0Reply
  • Dennis Wayne
    Member since 2020 · 339 posts · 356 votes
    5y

    You want to pool up as many leads as possible and every lead must get an offer even if it’s ridiculous make an offer and if it seems like a deal don’t you dare leave the house without a signed contract or offer left . Expect and accept a continuous stream of “ no’s” . Eventually some  will come along and do business just the way you like 

    0Reply
  • Todd Rasmussen
    Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Kate Barry:

    @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

     Definitely cuts deeper when it's personal. Just keep with it. You got it.

    0Reply
  • Sam Waitkevich
    Rental Property Investor · Georgetown, TX · Member since 2020 · 8 posts · 8 votes
    5y

    @Kate Barry

    I think it helps to try and remove emotions from the process as much as possible. I started my search a year ago with the same goal of house hacking a multi family. I got hooked up with a great realtor and checked out a ton of properties, made great offers, and got rejected on nearly 20+ offers. Finally got an offer accepted and closed at the end of November of 2020. There where definitely a few properties I was very excited about and could not believe my offers got beat! But with good people around you and a positive outlook it’ll work out. The only way to not get your next property is to stop making the offers.

    1Reply
  • Shane Cloutier
    New to Real Estate · Dalton, NH · Member since 2020 · 116 posts · 64 votes
    5y

    @Kate Barry We are hoping to eventually move out of the house we own and move into year long leases. We like the idea of being more mobile/flexible. We plan to use monthly rentals in other states to visit family during the winter. 

    0Reply
  • Shane Cloutier
    New to Real Estate · Dalton, NH · Member since 2020 · 116 posts · 64 votes
    5y

    @Kate Barry sorry to get off of topic. As we have said before if you want to chat any time we are always around to talk. I want to make sure you keep going. Good hunting to you!

    0Reply
  • Jimmy Cantave
    Miami, FL · Member since 2015 · 154 posts · 38 votes
    5y

    You doing job for taking action! 
    analyze what went wrong and keep pressing forward. The right deal will come 

    0Reply
  • Zachary Beach
    Specialist · Los Angeles, CA · Member since 2018 · 291 posts · 231 votes
    5y

    @Kate Barry

    You have only put out two offers you said. That’s the problem if you have low inventory you should offer on everything. At your price not there’s of course.

    0Reply
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