All Forum Posts by: Neil Polehn

Funny, I did the exact same thing.  I offered 446 instead of 445, and I am pretty sure a couple of the finalists (there were 2 rounds) were prob 445, and with the other terms it might have been just enough...

Originally posted by @Jay Hinrichs:

Originally posted by @Kyle J.:

There's nothing wrong with putting in an offer.  Just don't offer more than you're willing to pay, and then stick to your number.  It's only a problem if you get caught up in the bidding frenzy and pay more than you were originally intending to (or more than the property is worth).

when i was buying courthouse steps this was a constant battle..   And I had no business if i could not buy.. just to do all the work show up and bid only to never get anything well that does not work when its our business..

So what i found out is most investors had a number and it was usually a round number..  IE  we will only go to 405k.. I won a lot of bids

at 405k plus 500.00   I rationalized that with Hey would i pass on that deal for 500.00 ??  But it was a volume play.

If your just one off buying IE going to buy a home or two in a year then I think you look at it differently.    And there is a reason some markets have multiple offers and others dont..  the reasons are obvious to most investors.

Thanks everyone!  I had my offer accepted out of 15 other offers and didnt give away the farm, plus my numbers all worked at that price. I think many of the other buyers went lowers because they didnt run their numbers and  see that the numbers still worked at a higher price.

"Patricia Steiner Real Estate Broker from Hyde Park Tampa, Florida

replied 5 minutes ago

#1 Rule for a Bidding War: Don't

Leave those to the emotional buyers...investing is anything but that."

You probably get your deals off the MLS? I am still working off the MLS at this point, so a good deal will be seen by others and thus a bidding war happens for the good props. I should dig deeper for the next deal and get something off the MLS. I love the Austin market, but it's red hot right now. The new tech companies coming into the area mean there are plenty of good jobs and growing population there.

Neil

I dont have all your numbers but to me it's the opportunity cost of your cash.  Is it better spent elsewhere?  If not, then it's a good play given rents and values are trending up...

I hear you.  My approach is just about the numbers, if they still look good at ask + 10% and cash flow out well, I dont mind making a bid.  Especially if finding properties that cash flow positive in a hot market isnt easy and it's just been upgraded so I dont have to do any construction.  I wanted an easy remote deal after being burned in my last remote deal's construction costs/quality.

Hey Kevin,

Thanks for the reply.  The property I found got 15 bids because they put a low enough price to start a bidding war at 399K and it's in a hyper appreciation area. It was a 5 bed room house converted to 4 bed room with a guest unit, so the numbers really worked up to 450K.  I couldn't do all cash, but I also needed a super clean offer to win so I went up to 446K and won fortunately.

The owner just put in 50K in upgrades, so i lost the battles and won the war (so far).  It cash flows about $600 +, and is near a lot of tech companies and the guest unit has a private st entrance.  Also, since it's been upgrade I don't need to do construction to rent it out.  I wanted a really clean deal my first time back in the game after taking a break.  Thanks again,

Neil

Hello All,

I found a SFH that fits the formula I have for buying property and the asking price is good. Unfortunately since it's in a hot market, there are already multiple offers. I dont want to dramatically over pay and win, or underpay and lose. Last time I was in one I know I overpaid so I dont want avoid that. I am hoping you'll might know some rules of thumbs or guidelines for how much over asking price you are willing to pay?

Right now there are 4 offers and they close offers and pick tomorrow at noon.  Thanks!

Neil

Hello All,

I am thinking about investing with a partner to cut the risk, share the workload and have someone who can shore up my weak areas and be the local boots on the ground .  What have been you experiences with a partner in the past?  Do you think it's a good idea?  Whats the best way to find one?

I would like to have someone local to the area I invest in to keep the contractors in line and verify work, etc, but also be able to brainstorm ideas and learn from as well.  I am worried about getting involved with someone I dont know well and find out we dont get along or have incompatible work styles and have an ugly "break up".

Thanks!

Hello All,

TGIF.  I am from CA looking to invest in the Austin area, and would like to learn more about the sub markets and get a good agent to help me.  I have a couple prop here in CA I am refinancing, so I will have plenty of cash and and experience of going out of state (mostly not great to be honest).  I am hoping this time things go more smoothly with the help of resources from this site, but twice bitten three times shy.

I am looking at MFP but open to what is the best in this market.  Like everyone here probably the end goal is appreciation,  but I will be going for positive cash flow.  Thanks in advance!

Neil

Hello All,
How do you quickly separate the wheat from the chaff so you can do a deep drive analysis on on the few?  I am looking at 40 mls listings of MFR and I need a quick way to eliminate the losers, some of which do have rents listed so I will have to look them up.  How you quickly eliminate the losers so you can focus on the deals when looking at the MLS or alike?  Thanks!
Neil