Trying to start...wheels are spinning - Thoughts?

[Jonathan Scheeler]

Hello BP wizards and apprentices. We were fortunately in selling our home in CO and relocating to VA. Wanting to do something wise with the funds, we dove into the libraries, podcasts, and anything else we could get our hands on for RE investing. Having driven across the country x3 in the midst of the move; needless to say, we have listened to several books. BRRRR, Ultimate Book, Rich/Poor, Millionaire RE Invest, LL on autopilot...oh, so. many. books.

Anyways, we have tried to get off the sideline, but the coach keeps telling us to sit down. The most recent one has really got us. It was in Richmond, VA. Growing district that is being revitalized and properties are going off the market in 12 hours or less. Obviously, we missed the forclosure market, but one property was on for about 10 days. It was a gut job. Built in 1900, probably updated in the 1950's, and then was with the owner since 1967 (signer was a POA). Floors out of wack, kitchen was 5 feet lower than rest of home, came with all the possessions of the previous owner...pretty much the Investors dream. Seemed comps were around $212k-ish for bed/bath/sqft. Listed at $130k. We put a bid in at $55k.

What are we doing wrong?

Dazed and Confused.

[Joseph Cacciapaglia]

Was that the only offer you made? You need to make a lot of offers before something will hit, especially if you're that far from the purchase price. You also need to make offers that make sense. What was the rehab budget that you put together for that deal? How did you come up with the $55K? I've found that rehab projects are more competitive than almost any other type of deal in today's market. I'm finding much more opportunities in small multifamily properties than in single family rehabs. That may just be my market though.

Overall, you just need to keep looking at deals and making offers. If you have 10+ rejections, then you might want to start considering whether your offers make sense for the market you're in or not.