Your Not Low Enough Unless Your're Uncomfortable
What is the first thing you learn in real estate when buying? You learn you make your money when you buy. This holds true from day one until the end. If you get this part of the process right, you have a real shot at making some cash. In order to buy right, you have to get a good deal on a property. You won't make money by overpaying for something. When most people think of buying a property at a discount, they tend to underestimate how cheap they have to get it. I usually see good deal come in around 20-30% of the ARV on the acquisition. You will have to make a lot of offers and a good gauge for if you are low enough is how uncomfortable are you? Once you are in the business long enough, you lose that sense of discomfort because you have made so many offers. Initially you will certainly feel as if you are not offering enough and that you are insulting someone by making the offer at the number you need the property. You have to develop thick skin and stick to your numbers. If the numbers don't work, move on to the next one.
Ian Walsh
215.839.3271
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