All Forum Posts by: Mike D.

I invest in Cedar Rapids, Iowa metro. It's not hard to find 1970s+ homes that return 7.5%+. That's usually what I look for. There are also several good experienced management companies here so you can invest from out of state.

What kind of rates are you seeing in your market for investment property purchases?

I'm being quoted 8-8.5% in Iowa. That's for 25% down SFH purchase with an established track record.

Are there better rates nationwide or is that about as good as it gets?

Thanks for your perspectives. I have bought places with and without inspections. One time the inspection allowed me to negotiate a lower price so that was definitely worth it. But it was within 10% of list price so I still had room to negotiate. I have yet to have any of those inspections tell me anything serious enough that it killed the deal.

I totally agree. How much under asking for something that's been on the market for 2 months and is staring down the barrel of a long Iowa winter?

In my area full blown home inspections run about $450 and take half a day.

Have you found any inspectors that offer a pared down inspection routine for much less? For example they check the roof, foundation, sewer lines and nothing else? I don't need or want to be told that one of the appliances is not working when I am getting a significant discount as an investor. 

Quote from @Eric Jubeck:

Quote from @Mike D.:

I look for homes that have been on the market for 60+ days to avoid the competition and get a good deal. Maybe it's just a coincidence but I find that whenever I tour and express interest in these homes all of the sudden several offers roll in. Especially strange this time of year and after these homes have been sitting forever. Are the sellers getting wind of my interest and telling their clients that they need to get their bids in asap?

I suppose the way to avoid this is be ready to submit an offer immediately after looking at a house.

 Hey Mike, could be a few things happening, partnered with coincidence too...

Yes, sometimes a house that has been sitting all of a sudden gets all the interest at once...

Yes, it could be the Agent going back through trying to get cold leads warm again after your "interest"...

Yes, it could just be a negotiating tactic they're trying on you, or creating FOMO to get you to submit an offer...which you didn't really say if you actually got beat out on an offer or not?

But regardless of any of that, I wouldn't worry about it. The numbers are the numbers...and whatever makes sense to you for what that property is worth to hit your goals, then that is what you go in at. Forget all the hype they're feeding you and just offer what the numbers are telling you that you should be offering. Submit the offer and worst case you get told no, or get beat out, and you just move on to the next property anyways!!! Don't think too much into it and just trust yourself and that's it...the right property at the right price will come around for you, just gotta keep taking those swings!

I am getting beat out by real offers. Which is why I think the listing agent gets wind of interest and then tries to get all past prospects to bid. 

Yes the numbers are the numbers. But after taking the time to tour, run the numbers and make an offer you want the highest chance possible of the offer being accepted.

I want to make offers on several homes using cash. How do you typically show sellers that the cash is available? Submit a bank statement with your offer?

That makes sense Bill. That must be what's going on. Thanks!

I look for homes that have been on the market for 60+ days to avoid the competition and get a good deal. Maybe it's just a coincidence but I find that whenever I tour and express interest in these homes all of the sudden several offers roll in. Especially strange this time of year and after these homes have been sitting forever. Are the sellers getting wind of my interest and telling their clients that they need to get their bids in asap?

I suppose the way to avoid this is be ready to submit an offer immediately after looking at a house.

Now is the PERFECT time to be buying. There is no threat of wages dropping or unemployment. Intereste rates are about as high as they will be. Prices and rents will only go up. Take a look at your county assessor website and see how often houses sell for what they did 5 years ago.

I remember the same negative media back in 2009. Nobody was buying. I bought several 4 plexes then and they have since trippled in value. 

Find a good deal in a good area and I promise you will be so glad you did 3 years from now.