I have been on the Bigger Pockets Forums for 14 months now. I have been reading, listening to podcasts, and educating myself on real estate. We went to Jacksonville, Florida and Dallas, Texas to look at turn key investments.
We ended up going into contract for a duplex in Arlington which is between Ft Worth and Dallas.
We bid 10k OVER the asking price and we were going to pay cash to get the deal. After the inspection, we found out there was a laundry list of things that needed to be repaired. Some of the things on the list did not have to be done right away. But there were issues that needed to be addressed regarding the HVAC, plumbing, electrical, and roof issues. This did not include the all the other issues. The seller did not want to repair anything. Ultimately, we went back and forth on negotiations, and we decided to walk.
In my case, my husband is not really into real estate. His forte is the stock market. Unlike the stereotypical couple in which the husband wants to move forward with investment deals, and the wife is the one that needs to be cajoled into agreeing with the deals, I was the one that really expressed an interest in real estate.
I was about to make a six figure transaction and my husband was totally supportive and supported me in taking the reigns on this deal. I also have a higher risk tolerance than he does when it comes to investments. Just a personality thing, I guess.
What I learned about doing this deal, is that between running my business and taking calls and texts, and negotiating back and forth, is that it is really important to have a real estate agent who understands investing vs the hand holding of first time home buyers. It is a different kind real estate agent. Although we did not end up buying this house, I would like to recommend Becky Tucker from Keller Williams. Some of the things she brought to my attention, that I would not have even thought of as a newbie is:
-getting the rental payment history on the current tenant. Making sure they are current on payments.
-She pointed out some things to think about as an investor vs just buying the house.
Because she is an investor herself, she guided me through the process of what to consider before I purchased the duplex.
Even though, I am a complete newbie, I was not scared because I realized that at SOME POINT, you just have to jump off the cliff. You can only read so many books, and listen to so many podcasts. There is soooooo much to learn about real estate that at some point, you just have to jump.
I learned that for me, negotiating was a thrill for me, I could easily walk away because ultimately if the numbers don't work, they don't work. Because we earned every penny and saved it, we look at the purchasing of an investment very differently than if we were to just sign a bunch of papers and use other peoples money.
To me, purchasing real estate is not like buying a pizza, or a car. This is potentially a six figure transaction. Saving the money has taught me incredible patience. I will continue to search to find the right deal. I am not putting my chips on speculation or appreciation. I am putting it on cash flow. We have decided to go for cash flow for now.
Will keep you up to date on what we find next. Waiting on the right deal, turn key or what not. : )
If any of you more experienced investors have anything to share with me to think about on the next one, please let me know. I am all ears. I want to learn as much as possible.
Thank you!!
