I am a new rei and am struggling. I live in a community in northern Iowa with a population of approx. 25,000 people. There are over 300 houses for sale in my town. I have purchased several programs and books to give me an understanding of how to buy houses. I have placed bids on several homes using the 70% of ARV minus the estimated repair costs formula and am not getting any deals. They don’t counter offer or counter with a number no where close to what my original bid was. I am obsessed with becoming a rei and think about houses day and night and really want to make this work. However, it’s not working out like I’d hoped it would. I’m no where close to giving up just very frustrated. Do you have any suggestions for me? Thank you!
Hello BCambell,
Welcome to the exciting world of Real Estate Investing. Have you checked Foreclosures? or Motivated Sellers?
The good deals come from Motivated and Preforclosures. You can obtain records from here:
I really don’t know your marketplace because that is most important, If I were you I would study the marketplace in
the area you are trying to invest in. If there are 300 houses for sale you have to figure out WHY are people selling
there homes, (Financial, Job loss etc) if you can find out that information and it’s a common problem then you can have
an idea on what your market is doing. Remember the saying, it’s not about the house but the Market.
Never give up, this is the time in your REI career where people give up, because they realize it’s not as easy in the beginning as some people think. I encourage you to keep trying, something will come up for you…it’s always the first
few deals that’s always the hardest but it becomes easier once you get the hang of it…I hope this bit of information
helps you, best of luck in whatever you do…
What are the stats on your city?
You can look them up there. It’s not totally current but should be close since it doesn’t sound like your area went through a sudden change. Look at the demographics of your area, what % of people rent, what % are owner occupied, how many total houses, etc. That’ll help you understand your market more.
Then you need to find motivated sellers.
Hi, I am from central Iowa and my location is also in a smaller town. I don’t have a ton of experience but I can tell you that it can be frustrating sometimes and it is nice to have someone to bounce ideas off of. I started out rehabbing and was going to go to purchasing sfh for rentals and just decided I enjoy rehabbing too much to go there and deal with the hassels of renters. Do you have goals for yourself? I see others that have been in this awhile start out with figuring out what exactly they want to do in this business and concentrate on one thing. It can be overwhelming if you don’t think things through and decide what exactly you want to do. Someone sent me a reply when I first got on this forum and it is good advice-“Read, read until your eyes bleed.” I appologize, I forget who said it. Good luck, and hang in there. Graciez