Black Friday Real Estate Investing
Some advice for the newbies! When you are out trying to flip, wholesale or buy and hold, think like a "Black Friday" shopper! I have friends who will put so much time, effort and planning into saving $50 on a Christmas gift, yet they can't seem to figure out why they aren't making the big bucks with their real estate investing. Black Friday shoppers are basing their entire decision to buy on just one thing... the price!
Have you ever been to a big real estate auction? Prices get pushed up because of the competitive nature of people bidding against each other. Don't ever be this investor. Think like a Black Friday shopper, and only buy based on price. Know your numbers in advance and stick to them. If your max price is $200,000, don't agree to pay $210,000 because there is pressure.
I recently dealt with an asset manager on an REO. I had made an offer at $260,000 and it was a fair offer. The asset manager came back and said, "we have multiple offers, so you need to come back with your highest and best offer." I came back and said, "you already have my highest and best offer!" I didn't hear anything for a week, but then I got the phone call. Guess what? They took my original offer. I see this all the time. Tactics are used to make you think there is big competition for a home. Stick to your numbers, buy everything on sale and then sell it for full price! Good luck and have a great weekend :-)