Need some help, willing to pay for the education!

[Brandon Cronkhite]

Hey, my name is Brandon and I’m trying to get a handle on what I’m doing wrong. I would love to buy a local investor coffee or lunch just to sit down and see if they can tweak my process or give me some suggestions as to where I’m missing it. It seems I’m missing a pig piece of info concerning rehab pricing. I make offers and other investors scoop these properties up at asking price where I don’t see how they profit. Again, I think I’m missing something simple yet significant. I’d even be willing to share my first few deals with someone as a price for the education! 

[Nathan Gesner]

Originally posted by @Brandon Cronkhite:

great suggestion! I will do this, but i am more looking to "pay the price" for the time lol. i know many investors are very time conscious. I'm not trying to waste peoples time, so whatever it takes to be successful I'm willing!

I can meet you at Rawhide Coffee in Cody, Wyoming just about any time this month. ;)

Look, many investors don't invest for the maximum return. They either don't know what they're doing or they have so much money that they just want to park it in real estate and look like they're super successful when they're actually doing worse than the stock market.

I saw a property two years ago, listed at $100,000 and it needed a minimum of $150,000 in renovations. I looked at it with several investors, all experienced flippers, and they agreed with me. Most of them said it wasn't even worth renovating and that they would buy it for the lot price, tear down, and build new. It sold one month later for the asking price of $100,000 to a cash buyer. The buyer spent over a year renovating it and it now has a market value of less than $250,000. The buyer either occupies it or rents it, but it's a loser in both scenarios. HOWEVER...if he holds onto it long enough, it will produce a profit.

Real estate is only worth what it's worth to you based on your goals. Just because someone else is willing to over-pay doesn't mean your numbers are wrong. Stick to your plan instead of trying to replicate the mistakes of others.