Have You Ever Found the Next Deal Too Early?

Question

How do you usually handle overlapping transactions?

John Underwood · Answer

No.

If it were a "Deal" I'd make it happen.

One time I got 5 LTR houses at approximately the same time. It was tough financially and time wise to get them all fixed up and rented, but I made it happen.

Andrew Steffens · Answer

Currently I am representing buyers on 11 transactions, managing 65 or so units, and completing a STR purchase for my wife and I.  If its important enough you will get it done.

Bill B. · Answer

Found 2 homes on the same street a week apart. It was 25-50% less work and a little less money. It was nice saving some closing fees and submitting a boatload less paperwork. Plus you have zero pressure to close either one if you find a problem with one and the seller won’t budge.

Jules Aton · Answer

I don't seriously look unless I'm ready and able to make a move.

Adam Tafel · Answer

Yes, it just happened to me! Occasionally I will write “cash” offers without having the cash in the bank, I plan on refinancing the last project I am currently wrapping up. I have a few retirement accounts I’ll use for proof of funds, and I have yet to have this backfire, but of course I’ll have to eat the earnest money if I ever have a hiccup.

If the deal is good enough you can always wholesale it, use private money, so many options! I am of the mindset that only so many “deals” will fall in my lap each year, and I have to be ready to jump at all times.

Amit Patel · Answer

Hey Tracy,

Tthis happens sometimes once you start moving fast. You spot the next great deal before the current property is fully refinanced or sold.

A lot of experienced investors handle overlapping transactions by lining up a HELOC on the existing property for the down payment or doing a quick cash out refinance first. Some use a short term bridge loan when needed. The big key is having solid cash reserves so carrying both properties for a few months does not stress you out.

It feels uncomfortable the first couple times but overlapping is often exactly how portfolios grow the fastest.

Mike Grudzien · Answer

If something valuable drops in my lap, this old Marine will "git 'er done"!

Have You Ever Found the Next Deal Too Early?

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