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I disagree. You see low ball offers all the time trying to take advantage if someone needs to bail. Trust me those lowballers want the deal.
I and others have done it. I just bought a rental where the realtor said it was too low and the seller wouldn't take it. It was accepted. Your assertation that if it was worth more and I wanted it I wouldn't have thrown in a low ball off is not always the case.
Sometimes a lowball offer is just to get the conversation started knowing you're going to pay more. Offer too much and it's hard to go lower.
I can't understand why you are annoyed at greedy flippers marking up through the roof! How do you know that? You aren't privy to their numbers. I know lots of flippers who mark up through the roof because if they didn't they would loose money. They aren't greedy, just trying to break even.
I'll bet you didn't even think of costs like permits, hard money loans, holding costs like insurance, utilities, title costs, marketing to find a good deal. Those that flip often are spending a few thousand just in marketing and maybe get 1 house for every 1000 they market to.
As for lowballing, sure the buyer wants it, but not *that* much. Something else will come along. As far as flippers "breaking even"? Then they're not good at it. Flippers definitely aim to profit. Not necessarily a bad thing, but buyers should be wary that work was done well, legally and they aren't being taken advantage. You're telling me to think about loans, insurance, etc but I was told that stuff is none of my business I don't really care what the flippers costs were if what they're selling isn't worth enough to me to justify AP. As for trying to guess how much they're profiting? You betcha. Because, much like the restaurant analogy, if they're going to sell their services at such a high premium, no thanks I'll just do it myself... This thread is getting aggravatingly redundant even for me
Just that which was counter to your view. From professionals - meaning Realtors, folks who identify on the forum as Realtors. I don't expect you to blindly accept what the very few "investors" have told you in this thread.
Even I have agreed, on 2 or more occasions in this thread - that IF the guy paid market value then, it doesn't sound like he improved it $100K in value (regardless of his cost).
and I have no idea what the bolded means.
Re: bold, someone -- thought it was you -- said my instincts are holding me back, and I really don't feel like I've been held back at all...for some reason, a few CD peeps seem to think I'm a failure because I haven't bought a home yet. I'm not in the rush they seem to think I should be
I don't think I'm smarter than , hence all the questions I've asked. But just because I'm new to this doesn't mean I'm going to blindly follow what I'm told even when my logic, intuition, instincts and what little experience I do have goes against it.
You're really gonna be mad when you run across one that sold for $1.00.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,572,211 times
Reputation: 16698
Quote:
Originally Posted by Abby Schmitters
Yes. A whole pizza costs about $1.80 to make, including labor and overhead. If I see a whole pizza costs $14 on a menu, I grunt. If I see it costs $21.50, I get up and leave. It's called not wanting to be ripped off / taken for a ride / screwed. It's a combo of "the heck with this guy for trying to pull this off" and, in the housing market, genuine concern that the fact that the house sold for a low price recently could pose a problem for me at resale (same house, same 4 walls and plot of land, didn't do so well on the market), or could be something severely wrong with it. Maybe he bought it all cash, distressed buyer, or from his mom. Maybe he did magnificent repairs on it in 10 days, all possible. But as a buyer my radar is up when I see that. Sorry to tell some of you guys, it's not as easy as 1,2,3, collect major profit and be on your merry way. There's no such thing as a quick 100,000 bucks.
Wow you really have a narrow awareness of the world.
Where did you get this idea a pizza costs 1.80? including overhead? Overhead kills more eateries. I guess the whole world isn't as savy as you. I see pizza places with 25 and 30 dollar pizzas and there is a wait to get in. I guess all those people are just idiots and there is a lot of them. I'm sure Little Ceasars pizza is more your style, I think it tastes like cardboard, but hey it's cheap. A really good pizza is worth it to me and many others.
A quick $100K??? Once again you don't know what he has into it. He might have gotten it at a good price because it had major issues like foundation that scared everyone else off or no one could buy because it couldn't be financed.
I have homes I bought that had to be all cash because of big issues and no buyer could get a loan. Not much competition so they took my lowball offers ( yeas I actually cared about getting the houses) I got them at very low prices and fixed them and with 2 weeks they were worth 40 to 50% more than I paid.
How do I know? I refinanced 2 of them and they appraised 50% more than I had into them. At 75% LTV I got all my money back I had invested and some extra. Know what? The bank knew what I paid for the houses. But they based the value on what it is worth in the market , not by judging if I made a lot of money on it. That is what you seem to be doing.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,572,211 times
Reputation: 16698
Quote:
Originally Posted by Abby Schmitters
Because, much like the restaurant analogy, if they're going to sell their services at such a high premium, no thanks I'll just do it myself... This thread is getting aggravatingly redundant even for me
Sorry I misunderstood or missed where you had the skills to rehab a house yourself.
A quick $100K??? Once again you don't know what he has into it. He might have gotten it at a good price because it had major issues like foundation that scared everyone else off or no one could buy because it couldn't be financed.
It could have also been a family sale. I know at least ten of them the past couple years.
Or underwater people who were in a hurry to sell and bolt.
1 story 1 BR homes in the neighborhood usually sell for 420-ish (give or take). That's close to the offer we put in.
Those properties that have sold for $420-ish may have needed a new roof, new furnace, new carpeting, etc. So they may or may not be comparable.
Last edited by CGab; 10-10-2017 at 07:55 PM..
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