I'm passing on good deals?

Question

I was talking with an investor recently and asked how the market was treating him.

I expected him to say finding deals was the challenge.

Instead, he said,

"I'm actually finding plenty of deals. I'm just passing on more of them than ever before."

His reasoning was simple: he'd rather do fewer deals than force one that didn't meet his numbers.

It got me thinking because that's probably the opposite of what many newer investors expect. They assume experienced investors buy more, but sometimes experience just makes you say "no" more often.

For those of you who've been investing for a while...

Have your buying standards become stricter over the years, or are you finding yourself taking more opportunities in today's market?

Robin Simon · Answer

I think there might be some long-awaited bits of distress in some flip markets for the first time in a long time -- maybe cause of this is just flips sitting longer

Warren Mah · Answer

I'm passing on many more deals than I had in the past. My own personal underwriting guidelines have gotten much stricter due to the increased fluctuation in the resale market. As a reference I flipped 25+ homes last year and this ytd I'm at half of that. Not because of a lack of deal flow but more because I've been running my numbers much tighter, the same deals I would've taken down last year I'm passing on. I've taken the emotion out of deals and am buying strictly based on hard numbers incorporating longer hold times and increasing construction/renovation costs.

Jay Toluganti · Answer

It all depends on your lead flow and your strategy. I got like 50+ qualified leads in my inbox. I did not comp them because I dont want to list them during holidays.

I'm passing on good deals?

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