All Forum Posts by: Ryan Waage

Hearing this from another local KC investor is awesome! Going to be going this route myself in the near future.

Hey everyone I have a few questions I'm hoping some experienced people can help out a noob like me with! 

I am in the process of purchasing my first home and would appreciate any guidance relating to knowing how to handle multiple-offer situations, what's a "good" worst case scenario, and if i'm blinded by rose colored glasses. 

A little background... I am a year out of college, working at a stable job, income 60k~, and live in Overland Park KS with cash reserves of 40K~. 

The kansas city market has been very hot lately and the overland park area is especially coveted. 

I am considering a SFR in a class A neighborhood. 4b/2ba, 2,400~ sq ft w/ unfinished basement. It's an REO but is in move in ready shape. It's listed at 200k, the comps in the immediate area anywhere from 290-325. 5 blocks south and you start getting into 400k territory.
I estimate reno would be 30k to bring the home up to the 320k range. I ran the numbers on the BP calculator as follows, 30K reno, 295k ARV, which said I should offer 228k to make 15k profit from a straight flip. I plan to buy, live for two years, and sell / rent. I also would be saving close to 45k over two years from no longer paying rent and tax savings.

I went in and offered 230k, 30k above list price. This home has been very hot, but the numbers make sense to me up till 235k. The bank came back and said highest and best by this monday. I was told that I am "competitive" according to my realtor. The question is, should I bid up to 235k or more? Are their any tips I can use to figure out more information? 

Based on my assessment, the worst case scenario is an 8k gain in equity from the reno at 235k offer price. Best case is 35-40k with a comp breaker. Is an 8k worst case, a bad deal or not good enough? 

Finally, the home is near the best schools in the state, top tier location access to shopping and highway, and it's personally a 2 minute drive to my work. How much of a factor is location in price bidding? 

Appreciate any and all help. 
P.S. I have looked at owner-occupying a duplex but nothing in my market makes sense atm. 

Welcome to KC! I am similar in that I am also a so-cal transplant from roughly 6 years ago. I live in Overland Park and am currently hunting for my own first deal. Wish you the best of luck. 

 Thank you!

 Thank you for breaking down the process for me. That's much appreciated. I'd be happy to stay in touch going forward.

@Dmitriy Fomichenko Thanks for the tip, that's very useful.

@Larry Fried I'm in the middle of reading the guide right now. Thanks for the share. 

@Jane A. I share your sentiments. I have reached out to a couple realtors and they are sending me daily lists. Hopefully something good comes from that. To be honest I'm not very familiar with wholesaling. I know what they do to an extent, trading paper basically, but feel that I am still very naive about their role in the RE world. I guess my question back to you is do they really ever know much about the properties beyond whats on a piece of paper? 

Hey everyone!

My name is Ryan Waage and I am a recent college grad trying to take my first steps into the real estate world. I am fairly new to the whole process but have been reading through BiggerPockets and other websites to gain as much knowledge as possible. 

I currently design webpages and work for a small marketing firm as my main job. I am hoping to start with a few REO flips as I have knowledge about fixing up homes and then down the line begin adding in some buy and hold properties to develop a passive income.

I stumbled across BiggerPockets as a result of frustration oddly enough! I was looking at various REO homes and kept getting directed to a website called Hubzu. I went through their process several times and was getting frustrated to the point of searching exactly what it was all about and how they operate. Search results popped up BiggerPockets and I have been here ever since. Needless to say... I am not a fan of Hubzu but grateful for having discovered this community! lol

I guess you could call me a humble learner searching for that first deal. In the meantime I'm looking to develop connections locally and abroad and just get absorbed into the whole RE world!

Thanks for reading.
Have a great day!