Is it better to make the offer on the first visit to a home or take a day to make sure your numbers are correct and you estimate rehab as much as possible?
I realize both sides would have pros/cons but wanted to get an opinion.
I don't make an offer on the spot. I take a little time, usually 24 hours, before making an offer.
Sort of a self imposed cooling off period to make sure I don't get too excited about a deal.
As a newer investor you want to think through your rehab, do market research on comps to know the sell side in a flip, and also let your emotions settle down.
The problem with this approach is a seasoned investor will have a good property under contract while you are waiting.Years of experience gives the seasoned investor the opportunity to walk through the house developing a plan in their head and know the numbers of what the rehab will cost within 10% of the actual rehab cost. There is a good chance the investor knows the comps in an area because they have done market search in past or have sold multiple properties in an area. They can make decisions fast and submit the offer within an hour.
So you are in a hard spot, you need to grow in your knowledge, and during that process you are going to miss out on many deals. There will always deals to be had, just keep learning and being persistent in your search.
@Michael Westberry the answer to your question depends on how you find the property. If it is on MLS and truly is a deal you need to be prepared to make an offer ASAP if you like it. Now if you have found the home through your own marketing you will normally have some time. Most people you get in touch with through a yellow letter or similar means don't have prospective buyers walking through the house after you like a listed property could.
@Brooks Rembert thanks that is good advice. As a new investor, I need time to really do my research instead of getting really excited just to make a deal
@Dave Gallogly Thanks for the advice. You are right, many seasoned investors will get deals because I could not close a deal that day. More importantly doing my due diligence will lessen the risk of getting into a bad deal.
@Ryan Dossey Thats a good way of looking at. And to answer your question these are non listed properties that I will be making offers on
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