All Forum Posts by: Baron Wilson
Baron Wilson has started 20 posts and replied 50 times.
Post: Advice needed for my asking price
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Quote from @Andrew Syrios:
That is really odd advice from a successful investor. Yes, in the long run, real estate will go up in value and you'll become wealthy. But buying over the value of a property makes no sense and will cause all sorts of problems when it comes to financing and cash flow.
lol I agree! Thank you!!!!
Post: Advice needed for my asking price
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Quote from @Jacob St. Martin:
Hello Baron, I would tend to agree with that experienced investor you spoke to. Even if you overpay by 20k if you are in a good market then you will likely make that money back quickly. One question I had is, who is giving you pushback? That may impact my answer. There are a couple things to note though:
1. It sounds like you are in a low priced market, low priced markets are often that way for a reason. They tend to be less desirable and appreciate more slowly. In this type of a market overpaying might be a bigger deal. For instance, in my market I might pay $450,000 for a nice 5 bedroom house. Overpaying 20k for this is no big deal because I will make that back in one year of roughly ~4% appreciation which is doable in my market. In a low priced market overpaying by 20k is a lot.
2. If you offer too much your offer may be higher than appraisal. If the appraisal comes in lower than your offer than you will have to come up with the difference out of pocket.
3. It is only worth it to pay more if it is the only way. If there are no other offers out on the house than you have no reason to bid so aggressively. Or if it is a slower market, unless it is a crazy deal I wouldn't be bidding that aggressively right now because you can find deals where you are underpaying not overpaying.
4. That mentality works better in the kind of market we have had for the last 5+ years. Right now the market is different. We don't really know if home prices will go up or down over the next few years. Over 5+ years they definitely will go up. But if you overpay by as much as 20k on a 110k asset, assuming you put 20k down it wouldn't take that large of a dip for your houses appraised value to drop below the value of the mortgage at which point the bank may call your note due in full because they no longer have adequate collateral.
I hope this all answers your questions well! If you want to discuss in more detail I offer real estate consulting and can even help you work through the specifics of this deal https://www.stmartinre.com
Thank you for the detailed information. Very helpful! I didn’t know the bank can take your home if it dips below the value of the mortgage.
Post: Advice needed for my asking price
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
I hear all the time people offer sellers over asking price or over the value of a home.
Also, an experienced investor who is very successful once told me that no one would buy a home worth 100k for 125k but he himself would because he is a buy and hold investor and investing is for the long term and he will make his money back.
Why is it am offering a property worth $116k for $135k and I am getting push back? To me that is a little above asking price and tenants will pay off the property and give equity. Also the house will be owned free & clear.
Post: Looking for buy and hold investors
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Quote from @V.G Jason:
If I am renting it out, it doesn't matter what it's worth?
Did I read that right?
Dont take what I say too literal. Im not saying pay $300k for a home worth $30k just because you want to rent it out but in some cases if a home is worth less than the asking price some investors still purchase. Many investors offer over the asking price or the value of the home. AM i wrong? You buy rental properties. You should know what I mean. Anyways, if you want this deal let me know!! I may just charge an assignment fee instead of $150k
Post: Looking for buy and hold investors
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
True, I am new to this game. Dont take what I say too literal. Im not saying pay $300k for a home worth $30k just because you want to rent it out but in some cases if a home is worth less than the asking price some investors still purchase. Many investors offer over the asking price or the value of the home. AM i wrong? Also, my quote was from experienced investors apart of Toledo REIA.
Quote from @Chris Seveney:
Quote from @V.G Jason:
If I am renting it out, it doesn't matter what it's worth?
Did I read that right?
OMFG. Yep you read that correctly. This broker is going to learn the hard way. They really need more education for licensed real estate professionals.
Post: Looking for buy and hold investors
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Quote from @David Fern:
I might pay asking for the house that doesn’t need rehab under the right terms. If the seller is willing to do seller financing at 0% interest for 30 years, max 9% down, then please PM me with details. Thank you.
No seller financing, I can do $130k and an assignment fee of $10,000. There is room for negotiation so let me know. thank you!
Post: Looking for buy and hold investors
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Dont take what I say too literal. Im not saying pay $300k for a home worth $30k just because you want to rent it out but in some cases if a home is worth less than the asking price some investors still purchase. Many investors offer over the asking price or the value of the home. AM i wrong?
Quote from @Chris Seveney:
@Baron Wilson
Why would someone buy for more than they are worth?
Are you a broker? What is your role in this?
Post: Looking to sell my home
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Quote from @James Wise:
Quote from @Baron Wilson:
My home is listed to be worth $116k but I want $150k. It’s is located in Toledo , OH. 3bedroom, 2bath. You can get $2,000 per month at least if you rent it out, needs no work, etc. looking for cash buyers. Thank you. It’s in a nice area.
Bruh...This sales pitch ain't it.
Many investors are interested. You must not buy and hold?
Post: Looking to sell my home
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Quote from @Gordon Cuffe:
Why would anyone pay more than it is worth ?
Post: Looking for buy and hold investors
- Wholesaler
- Oregon, OH
- Posts 56
- Votes 15
Yea Quote from @V.G Jason:
If I am renting it out, it doesn't matter what it's worth?
Did I read that right?