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Updated almost 18 years ago,
Gut feeling or Mentor? 1st deal screw up...
ok here's my problem first off if everyone does not know i am a complete noob in real estate investing. i only became interested in REI the begining of this yr. i am full time+ network admin from jacksonville fl. and joined a local REIC late Jan.
since then i've been exhausting all resources creating a buyers list and contacting sellers for good deals. i just recently came across a deal where an out of town invester was selling a property here in jacksonville for 45K. it's a 2bd 1 ba etc. i go and check out the property. it looked ok from the outside and was in a decent neighborhood. i checked zillow, bank of america, and had my realtor pull comps and the ARV was 95k. so i call to setup a time to see the inside. my plan was to get the property under contract and let it go for 50k. since i am a noob i asked my mentor/captin (our REIC club broke us up into groups and assigned each of us with more seasoned investors for guidance and moral support) to accompany me so i wont screw anything up but he could not make it on that particular day. so i went by myself. again i'm a noob but from what i can see everything check out ok especially for the asking price and my gut feeling was to get this thing on contract. but i stalled and said i would like to wait until my "partner" takes a look. long story short the next day i met with my mentor/captin and first off he said i never should have told the guy i planned on wholesaling the property (which i did and i agree) and secondly he said it looks like the house needs a lot of work about 25k worth and to make a offer of 39.9k then said no make it 35k. i didn't think the guy would go for it b/c someone started to rehab already and just had to stop work on it for whatever reason so the electric was upraded already, about 55% of the walls were done and painted. i also didn't think the guy would go for it b/c i thought i screwed up by telling him i was planning to wholesale. but i've never done this before so i was trusting the person who has done this before.(my mentor/captin currently has a few rental properties, he's wholesaled, reahabbed and resold) so i planned to call the guy monday with the offer but i got little busy at work and and besides i was was hesitant anyway b/c i thought i screwed up and i just didn't think he would go that low. so this morning i had a meeting with a guy from realnet usa, they loan money to investers, buy/sell properties etc. and during the meeting the gentleman hands me a list of available properties he currently has on contract and lo and behold at the bottom of the list is the very property i vistied this weekend. they're selling for 52k with a 95k ARV with estimated rehab @ 15k. i didn't say anything i played it cool and finished the meeting, we exchange info and i went on my way. once i got outside i beat myself up pretty bad(mentally of course) for not going with my gut feeling but again i was hesitant b/c i've never done this before and that was actually my very 1st time meeting with a seller and feeling good about a particular property. all others i looked at did not seem good for me @ the time. i called my wife vented and got back to work and called my mentor/captin but havent talked to him yet. and even called the invester who originally showed me the property ( i didn't mention anything) i just gave him some info he requested and told him to keep calling me when he has properties available and he gave me one right away and asked could i go out to check it out. i guess i wrote all this to say first off i'm a little discourage, not enough to ever quit of course but enough to feel like a total moron and second.... i don't know i just would like some feedback. sorry for the long read guys and gals :violin: but i must admit i feel a tad bit better now. thanx!!
off to find the next deal ... :superman: