Lost J.O.B.

First - sorry about the whole job situation. I can imagine the worry you and your family, but I know from my own life experience when one door closes another always opens! I can relate to your fear mode....I knew when I saw Dean on TV and read the book that this was going to change my life. All my friends and family thought I was crazy (and a tiny part of me did too - but I learned not to listen to her haha). As a new investor myself, the best advice I can give after successfully flipping my first house is this.....DO YOUR HOMEWORK FIRST. Find your target area - good neighborhood, good school system - then look for your first investment there. I cant stress the importance of good location! There are a ton of good deals out there - but they are only good if you turn them around again.
Then - use the tried & true formula to figure your offer price. The numbers DO NOT LIE. I wanted to do my first deal so badly that I tried to manipulate the numbers - but you must be patient! A successful investor is a smart and careful one! Here is what I use:
1.FMV that you can sell house for when done
2.Less real estate commission (if applicable)
3. Less rehab costs (add 5% to whatever you think it will cost)
4. Less minimum 4 months holding costs
5. Less profit you would like to make
6. Equals amount you can offer for house.
If you follow this you will have full confidence in moving forward to make your offers, and you WILL be successful!
Good luck and hope this helps a little,
Laura

to hear that you lost your job. Laura is right on when making an offer. I just offer 70% of ARV (after repair value) less repairs (if possible) kkep on offering until you find one that accepts the 70% rule.

Thanks for the comments.

I have another question for you. I saw a property that was listed in the small town where I live, something like this:

Whole city block, 5 houses, 100% rented... $35,000.

Naturally I jumped on the phone, thinking the land alone would be more than that, but it was too early and the listing agent's office had not opened yet. So when I got to work (this was a few weeks ago) I emailed the agent thinking he would respond or call as soon as he got my email or voicemail.

He responded to the email and said that it was a misprint and should actually be listed at $135,000; which is kind of what I was thinking to begin with.

However, when I asked for more information and subsequently ended the email with, "Is the seller motivated?" he never responded. Is this a taboo question to RE agents, because if they sell for less their commission would be less?

I meant no offense by this question, but the houses on that property could use some work, that is the only reason I asked.

Please advise.
Thanks.

-Brian Carter-

Wow! An I thought I was suffering from paralysis of analysis, not having actually completed a deal in my first three months. I have put some offers in, and I am putting in the hours studying to know what I am doing. I also
have been "investing" many dollars in my real estate education. I would rather see you go out and fail, fail, fail, then to regret having not tried, tried, tried. Keeping trying and you are bound to succeed some time.

Brian,
I dont really know how to answer this. I work with a great realtor who deliberately helps me look for those motivated sellers. But if you are dealing directly with the agent for the seller, their job will be of course to get them the best price. The only idea I can think of is to make personal contact by phone and actually do a walk through....then during conversation you can find out more information. Also, the really great deals dont last, so he might be dealing and focusing on actual offers. Sorry - but thats the best I can think of to answer your question.
Laura