25% down on MLS Property
Correct me if I'm wrong here. Most people say if a property is on the MLS it's either over priced or priced at retail value. My question is, what if I decide to buy a property at retail value putting 25% down. If the down payment make my numbers work and I don't mind leaving my cash in the deal for long term gain, would that be something for feel guilty about or should I take a different approach? I know we are in a business where you should leverage as much as possible but I'm seeing everywhere people are stating the numbers aren't working unless you get a steal on an off market property? Let me know your thoughts. I want to make sure I understand what approach I should take.
Warmest regards,
Robins
@Robins Dorvil You can still get deals on the MLS. For the most part they are retail, but there are opportunities if you keep close tabs on it. Look for properties that might be mislisted like 2BR homes that are 1000+ square feet that could be a 3BR or something that is super ugly and needs cosmetic updates but is otherwise in good shape. Just takes a little longer nowadays to find something but they're out there.
Originally posted by @Jeremy Taggart:@Robins Dorvil You can still get deals on the MLS. For the most part they are retail, but there are opportunities if you keep close tabs on it. Look for properties that might be mislisted like 2BR homes that are 1000+ square feet that could be a 3BR or something that is super ugly and needs cosmetic updates but is otherwise in good shape. Just takes a little longer nowadays to find something but they're out there.
That makes a lot of sense. I'm scouring the MLS everyday just to get an update on what's going on with the market now that I'm back in investment mode. Thanks for the tip.
I buy mostly from the MLS
-
Real Estate Agent Pennsylvania (#SBR005765 ), West Virginia (#WVA230040225), District of Columbia (#BR200201381), Maryland (#648402), Virginia (#0225219736), and Delaware (#RA-0031082)
- (301) 893-4635
- http://www.DistrictInvest.com
- [email protected]
- Podcast Guest on Show #192
@Russell Brazil I presume you start really low with your offers. Do you have a target purchase to value that’s in your criteria and are you doing the standard down payment on these or paying cash?
@Robins Dorvil
Most of the time my offers are well over asking.
-
Real Estate Agent Pennsylvania (#SBR005765 ), West Virginia (#WVA230040225), District of Columbia (#BR200201381), Maryland (#648402), Virginia (#0225219736), and Delaware (#RA-0031082)
- (301) 893-4635
- http://www.DistrictInvest.com
- [email protected]
- Podcast Guest on Show #192
@Russell Brazil ok that just blew my mind!!!! Asking over list price must mean they are listed under market value or you have a long term approach with that strategy?
@Robins Dorvil
I live in a very competitive market. Most properties that are appropriatly priced fet 5+ offers in under a week.
-
Real Estate Agent Pennsylvania (#SBR005765 ), West Virginia (#WVA230040225), District of Columbia (#BR200201381), Maryland (#648402), Virginia (#0225219736), and Delaware (#RA-0031082)
- (301) 893-4635
- http://www.DistrictInvest.com
- [email protected]
- Podcast Guest on Show #192
@Russell Brazil ok so that’s definitely a long term play with the right numbers.
@Robins Dorvil My 1st property was off of MLS and I offered full ask. It was very outdated, finally done and tenants are moved it and it has nice cash flow. Just went under contract on a duplex that I also got off MLS, Offered a little over asking becasue I knew I would be up against cash offers. Just have to come across the right property at the right time.
@Melba Chambers interesting. Did you do traditional financing at 25% down payment?
@Robins Dorvil I did 20% down for both
Honestly if you can afford it putting more money down is not a bad thing. People on this forum are obsessed with debt which sounds great until the market turns or you have a large unexpected expense or have over estimated your rental income.
-
Real Estate Agent Virginia (#0225260957), District of Columbia (#Sp40001090), and Maryland (#667710)
- Samson Properties
Originally posted by @Jack Seiden:Honestly if you can afford it putting more money down is not a bad thing. People on this forum are obsessed with debt which sounds great until the market turns or you have a large unexpected expense or have over estimated your rental income.
That's why I wouldn't mind just to hedge my bet against the impending recession that's looming.
@Robins Dorvil Robins, if you have the financial capacity to do this, do it.
In fact, many successful investors do just that and I think it is wise to play the long term game and not always looking for a "steal", which everyone is still and will be looking for!
Long term approach always pays in Real Estate Investing!
I buy primarily from the MLS. I usually only put 20% down on single family though. As a landlord it is nice buying rent ready homes because dealing with contractors and doing repairs before you can rent a house is quite expensive and can take a long time.
It's nice being able to buy a house and put it up for rent the next day.
@Ola Dantis I agree. Because I’m a buy and hold investor, I prefer to buy real estate and wait instead of waiting to buy real estate and never jump in because I haven’t found that steal. Will the bargain deal come around? I’m sure. Will going the traditional route take longer? Of course. But it’s a much better start than waiting.
@Anthony Gayden that’s awesome. You’re doing 20% down investor loan with a local lender?
Originally posted by @Robins Dorvil:@Ola Dantis I agree. Because I’m a buy and hold investor, I prefer to buy real estate and wait instead of waiting to buy real estate and never jump in because I haven’t found that steal. Will the bargain deal come around? I’m sure. Will going the traditional route take longer? Of course. But it’s a much better start than waiting.
That's the spirit right there!
Originally posted by @Robins Dorvil:@Anthony Gayden that’s awesome. You’re doing 20% down investor loan with a local lender?
Yes, and they actually have deals for 15% down as well with PMI, but this is only for single family homes.
@Russell Brazil
If you dont mind me asking, what is your investment strategy/plan?
Assuming your doing mostly buy and holds are you putting more down in order to male the numbers work?
Apologize if you've mentioned this elsewhere at some point and I missed it.
Originally posted by @Erik B.:@Russell Brazil
If you dont mind me asking, what is your investment strategy/plan?
Assuming your doing mostly buy and holds are you putting more down in order to male the numbers work?
Apologize if you've mentioned this elsewhere at some point and I missed it.
I buy class A/B+ rentals in the higher income parts of the DC area. Particularly high demand locations close to our median price point where that demand pushes my price and rents up a good deal over time. My typical down payment is 25%.
-
Real Estate Agent Pennsylvania (#SBR005765 ), West Virginia (#WVA230040225), District of Columbia (#BR200201381), Maryland (#648402), Virginia (#0225219736), and Delaware (#RA-0031082)
- (301) 893-4635
- http://www.DistrictInvest.com
- [email protected]
- Podcast Guest on Show #192
- Investor
- Fort Washington, MD
- 1,366
- Votes |
- 1,076
- Posts
There are unlimited deals on the MLS that work for buy and hold. For flips, its do do.