All Forum Posts by: Account Closed

Perfect. That answers my question. I'll start basing my offers on a 15,000 to 20,000 profit and see if I do better. Thanks for all the advice guys.

I understand the formula and the 70% rule and all of that.

I have an example for what I'm trying to ask.

There was a foreclosure property in Houston for 46,000 list price. ARV was estimated at 110,000. The bank took all offers until a determined date. I made an offer of 55,000 (9,000) over asking. I lost to another offer.

If I had won the contract, I would have estimated my profit at over 30,000. Should I have just used the 70% rule and made a higher offer and minimized my profits to, say, 15,000? Or am I doing the right thing and I should just keep doing what I am doing and eventually it'll happen?

Being new at this, I'm trying to overestimate reno costs and holding costs, so it doesn't bite me in the *** later.

I'm not trying to go above that number. I worried about maximizing my profits below that number and still being able to be in the running on winning the contract.

So after looking at the market in Houston for the past few months, I'm noticing a couple things.
First, there are many many foreclosure homes in Houston listed well below ARV.
Second, the offers are all turned in to the bank at the same time, so highest offer wins.

So my question is this. Do I keep offering just over their list price and hope that one of my offers will eventually be picked, or do I calculate the highest offer I can afford to make while still making a profit on a flip? And if so, what is the best way to calculate that?

Thanks guys. Nice to know people went through the same thing. Just needed to hear it I guess.

So I have been looking at properties for about two months now and have made some offers. Unfortunately, I'm either getting beat out by someone who puts in a offer a day or two before me or being beat out by a higher offer. I am starting to look again, but I'm getting frustrated. I guess I'm just looking for some cheerleaders to tell me that it takes a while to get that first property under my belt.

Any advice would be helpful too.

Chris and Charles. I'm wanting to sell the first couple to build up some cash, and then start holding on to them for rentals.

I'm trying to do this small and smart at first. I have 25,000 in cash and financing in place already. I have made a couple of offers, one which fell through and still waiting on a response from the second.

I'm looking for places up to 60,000. I can handle the mortgage with all me other bills if things go bad. I want to sell, but if I have to rent, it's no problem. If I rent, I can refi after 3 months and pull the equity out to do another property,

The property I'm waiting on a response from is a 100,000 property I offered 55,000 (they are asking 46,000), but there was a lot of interest. I would use my cash for the 20% down and closing, which would leave me around 10,000 to rehab the place.

Thanks for the warm reception everyone.

Thanks Guys.I've made a couple of offers so far. Unfortunately, it seems everything I'm finding already has a lot of interest before I get there. Hoping to find a trustworthy wholesaler in the area if these next couple of deals fall through.

Hello all, Simon here. Just joined, both this website and the real estate investment game. I am presently a Project Manager for a pipeline inspection company and am looking for homes to rehab in the Houston and surrounding areas. I'm hoping to make some contacts in Houston to help me accomplish this.