It is 60% of the appraised value. Reselling it is a good idea, but I actually want it to rent it out. But since I have very little closing costs involved in this deal, reselling isn’t too bad of an idea.
Would a lender have a problem with a buyer purchasing it right after I purchased the property???
Why would you lowball a already great deal? Is the seller not marketing the property? If this were me and they flat out offered it at 60% below appraised value + it cash flowed + seller financing I would have been more concerned about the seller signing the contract before they changed their mind rather than trying to see how much lower it would go.
Experience is why. Wait until you have a bunch of places, then you won’t want anything unless it is a great deal. Also because I don’t want to leave anything on the table. I put a bunch of bids in this week, all very low. I wait and see who bits and then go from there.
If this were a million dollar property at 60% of market value then I probably wouldn’t play around. But this is a little SFH that is for rental property. There aren’t any big stakes here.
You really want to understand how critical it is in your real estate career to buy only GREAT DEALS.
I’ve been in this 20+ years (just a FYI)
my opinion is you have it backwards. Those MM + deals are very easy to find at <60% appraised value. Hell you could check the ARMLS and without getting a agressive realtor find 10 or so avialable.
I do agree with you 100% about only buying great deals, I’m just saying you already have one and seems like you just got a little greedy.
By the way Iron, I wasn’t slamming you, was just curious.
I gave in and accepted her requirement for full asking price. I just wanted to see if there was any play room in the price. What I found out was that there wasn’t any room in the price. But I don’t regret putting the bid, even if I would have lost it to another buyer.
I guess in the end what I want is only Super Deals or nothing. A lot of the time it will end up being nothing, but my risk is so low when I only put very low bids in that it is more then worth the effort. I always find out where a seller stands, what is there lowest possible point.
Some investors (not you) are affraid to low ball, it is a weakness that will limit there potential and increases their risk.
I shouldn’t have assumed you were new. Sorry!