the lunch that cost 175k

Just want to share a story today on how I bought my current resident and some lesson learned. It was a typical Friday and i was working from home, looking at the clock and getting ready to hit the tennis court. Out of no where a senior investor I recently met call me up for a late lunch. Without a second thought i change my lync status at work to “away” and quickly hoop on a car to see him.

As always, I learned something new from him every time we met but this time is a LITTLE bit different. he received a phone call from his friend complaining about an agent won’t agree to submit a low ball offer on a house. After learning about the house and see its value on paper. we went see it, like it, and submit an offer the next day and got accepted.

Long story short, that “lunch” ended up cost me a fortune  and I have no intention of moving.

So what was the lesson learned?

  1. Really know your market. Good deal often need quick decision. The year of “give me a couple of days to think about it” is over.  In the current market, You will have a couple of hours to make decision on a good deal before somebody snap it in front of your eye. I won’t be able to make a 175k decision in a couple hours without really knowing my stuff.
  2. always carried a loaded “financial” gun and ready to fire any time you need it. In order word, you should have multiple tool in your tool box always be in a ready position to buy at any time. You never know when a good deal will come up. I rather be ready and have no deal to buy then have a deal to buy but have no money. Get your credit line ready, cash save up, relationship built and maintain with your banks, partners, LP at ALL time.
  3. Have multiple exit strategy before entering a deal. When the properties is contracted, you could always wholesale it, owner finance it, flip it, rent it, or move and live in it. This time i select the last option just because i like my deal so much.
  4. If you work with an agent, make sure he or she is also an investor. This is a bias statement but the only reason i was able to get this house is because the all the other agent refuse to submit a low offer because low offer often or not damage that agent reputation. This house obviously has a problem, and the seller has some issue and the other agent, without an investor mindset couldn’t see pass through it. As an investor, we look for problem and we solve problem. I too, struggling whenever or not to put on my realtor hat or my investor hat. I happened to execute everything correctly in particular case.

well that’s it. Happy Monday. here is a pic of me and him and Jenny before we purchase the house

Go out there and get your money straight.