Under contract on property #2 in Indy!
I am pretty excited to say the least. I have analyzed a little over 100 deals, made 30 or so offers, and have finally had one accepted! Set to close at the end of this month. It has been a great early learning process. I found myself early on trying to justify the deals with emotion vs sticking to the numbers. I found myself chasing deals due to my competitive spirit. I hated to get outbid! Early into the process I had an agent make a verbal counter offer and I accepted. As we were preparing the new offer agreement the sellers agent asked if I would like to revise my offer since she had received a few offers over her counter offer to me. I felt a bit angry that she would go back on her word but I do not operate that way. I have principals I adhere to and did not want to compromise those principals just to get a deal. That was a learning lesson and a little deflating. I picked myself up, said some prayers for renewed strength, and pressed on. There were times where I would have 4 offers hanging at the same time which was a little stressful. I know you can easily walk away if you have an inspection contingency but I am not that guy. If all 4 were accepted I would find a way to fund them all. A few nights of lost sleep only to be outbid on all 4 properties. This happened a few times. I eventually ended up with the dreaded analysis paralysis counting every possible penny on each deal. I bid on MLS deals, off market deals, REO deals, you name it! I have bid on homes on the VA foreclosure site and Homepath. Well, the one I am under contract now was a HomePath home and so far it looks to be a winner. It has been inspected and my GC has toured the home as well and we have a game plan. It is in an up and coming neighborhood in Indianapolis and I couldn't be more thrilled to initiate my first attempt at a BRRRR. I felt like sharing this so that other newbies could see that no matter what, you must keep pushing and remove all emotion and use MATH instead. Determine the type of strategy fits your personality and risk tolerance. Determine a market or 2 or 3 which you would like to have properties. Determine what type of tenants you want if you are buying and holding. Determine, determine, and stay determined. It will eventually happen. Network on FB Investor groups and here on BP and get some people on your team with a solid track record who you can trust. Good Luck to all fellow newbies and Stay the Course!
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A word to the wise...verbal offers are not worth the paper they are written on. A broker has a fiduciary responsibility to their client to obtain the best offer possible. Usually, multiple offer situations occur and until the seller signs the agreement there is no contract. This is not a low ball and negotiates market it is the highest and best along with a cash purchase that wins out of any good opportunity.