All Forum Posts by: Nathan Ward

@Chris Adams You are right, I do work full time and in most cases out in the field. But I do my due diligence.

Scrutinize the MLS listing

Go on the county website to see last purchase price and in what year

Use Google Maps and look at the street/area

Buy where I am familiar

See similar comps on Trulia and again on county website

I do see there is the inherent risk bidding on a property not seen, and normally I would do a drive by at least. Bad timing in this case.

@Chris Adams Chris, thanks for the detailed reply. I am somewhat new to RE investing, but the numbers you came up with in your post were quite similar to what I crunched while in the process of bidding. As to the matter of bidding before viewing the property, I must disagree. A low ball offer like 40k gets you in the mix and the attention of the bank and of course did have a housing inspection contingency. The mistake I believe was in not accepting the counter by the bank at 55k. Countering the counter allowed other offers to come into the mix. All my final offers thus far have been cash, as is, no contingencies.

Cheers,

Nathan

@Sharad M. I know this type of offer exists and is similar to the way bids are processed on eBay. But that some banks will not accept this type of offer. It was the case for the above property mentioned.

@Account Closed Bank was considering first bids to owner occupant for 20 days, which I was willing to abide by. That's why I thought there would be less competition as it seems, at least in Pittsburgh, the cash investors have to wait.

@Jay Hinrichs Not aware of banks doing this. Would this be through a loan or cash?

Thanks all for not just coming out and saying I messed up, cause that's how I feel at the moment. The market here in Pittsburgh does seem to be heating up and opportunities like this are becoming fewer.

The first bid of 40k was contingent upon a home inspection. All bids that followed were cash, as is, with no contingencies. In hindsight, I should of accepted the counter at 55k in which I would be responsible for closing costs and before the bids of other investors were submitted. Lesson learned, I suppose, but it doesn't make it any easier to swallow. Perhaps the bank is just taking time to decide, here's hoping!

Nathan

Hello BP,

A week ago I found a SFH listed at 55k on the MLS that turned out to be a Fannie Mae foreclosure. 3 bedroom old style house, finished basement and attic, and two car garage. Seemed like a good deal and based on the pictures and talking with my agent decided to put in offer at 40k. Viewed property after bid was in and felt property exceeded expectations as a flip opportunity. Figured about 16k in repairs and property should sell at over 110k. Bank countered at the the list price of 55k so RE agent and I decided to counter again with 55k minus closing costs up to 2500 dollars. A few days later RE agent was informed with a multi-bid letter and that we should submit best offer and the bank would decide. It's been a few days now with no response. My agent tells me this means, 1) bank is taking a while to decide or 2) bank accepted another offer and is waiting for signed docs before informing other bidders. At this point I am wondering if I should have done something different. Perhaps this is a normal occurrence in the RE market? Please advise.

Thanks,

Nathan

@Mark Rowan Welcome to BP, I'm a new member myself located in Pittsburgh. Congrats on your first investment!

Nathan

@Raymond B. Thanks Raymond!

@Liam I grew up in the South Hills area of Pittsburgh and this is where I chose to invest since I know the area well. Also keeping the properties close to the home base in case of an emergency. It is my understanding the Pittsburgh market is a stable one but the surrounding areas see some fluctuation perhaps due to urban sprawl. Seems like you can find the best deals buying REO's and foreclosures in one of the many unique Pittsburgh neighborhoods. For example, South Side, an old neighborhood along the river but close to the city has a vibrant college/artist population and will pay big rents. Hope this helps to start.

You guessed it, oil and gas. Are you in college or just live in State College?

Nathan

Thank you all for the welcoming responses! It's good to know we have a community here aiming for similar goals while reaching out to beginners and seasoned REI's alike to avoid common mistakes.

Cheers,

Nathan