How much do you counter offer sellers?

[Jason Lam]

If you saw a 2br , 1bath house for 100k how much would you offer them half? or lower? (fairly good area)

I am still learning about real estate investing. and I do not have a buyers list of my own but lets say if I did have a buyer list and someone on my list will buy the house. but only for 70k. I get the price of house down to say 50k, then do you sell it to the buyer for 50k or for his 60-70k depending on negotiations.

Or do you keep this house as a rental and put a mortgage on it to purchase the property.

[James Vermillion]

Jason, I am not sure I like the question. The price for the house is going to depend on the market and what the house is worth. The list price of the house means little to nothing. I have seen houses listed for double what they are actually worth...you need to care about the value of the house. If a house is listed for $100K and you find it to be worth $75K, I would not even bother with an offer, there are too many other good deals. However, if a property is listed for $100K and it is worth $100K, you will likely not be taken seriously if you offer 50% of the asking price.

I also agree with Joel, what you do with a certain property is going to depend on your financial situation (can you get financing, do you have cash for a down payment, etc) and your long terms goals (are you trying to build capital or build a cash-flowing portfolio)?

If I were you I would really think about what your real estate investing goals are...what are you trying to achieve? Write these down and then figure out what you need to do to achieve these goals. Good luck!