Investing in Real Estate Pt. 1
September 7, 2019
Hello everyone! It is a sunny Saturday afternoon and I FINALLY have a weekend to blog! I have been extremely busy the last few weeks with packing up the house and starting school, I am taking 3 classes this quarter. I also moved last weekend with tons of homework as well as cleaning and unpacking the house. This weekend I said I was not going to do ANYTHING! I have had something going on every weekend for pretty much the entire summer so I am happy to be sitting down and blogging. I am also enjoying a Tito's Strawberry Daiquiri because fuck it that's why!
So today I wanted to talk about my current real estate experiences. As I have stated in my other blogs, I am currently on the market looking for a two flat on the North side of Chicago. My budget is $350k and so far I have put in multiple offers on 3 different houses with no luck. I have noticed a trend with my house hunting lately that people are emotionally attached to their homes thus valuing it higher than what it is worth so the negotiations seem a bit ridiculous but it is not my first rodeo so this is expected in my two flat journey.
I always make sure to do my research before putting in an offer on a home. I look at the comps in the area, I make sure to ask my realtor their opinion, and do a financial analysis to see if its even worth it. If it is, I put in an offer that I feel is fair and wait for a response. The counter offers I have been receiving are pretty ridiculous considering that every place needs $20k minimum of work done and like $40-50k over market price. We send the comps over that are in the same condition, location, and size but nope, offer not accepted. Here is my thing, I will send you the initial offer and when you counter I will send my best and final offer. I don't play those games of going back and forth unless I am in love with a place. Additionally, I don't have time for games, my opportunity cost is more valuable than playing around about pricing. I will give you my best and you give me yours. Some people like to bluff and end up losing the entire deal over a couple thousand dollars and that is just foolish to me.
I don't mean to sound negative but it almost reminds me of the car buying experience, which I hate mind you (don't we all?), where you have this salesman who BS's you the whole time pretending like that's the best he can do and when you are about to get up then hes like "wait, okay. I am not allowed to do this but you look like a good guy so here is what I am going to do." Ugh, haha. So annoying. All the places we put offers on are still on the market, one for only a few days but the other two over 60 days now.
I am optimistic I will find something eventually and I am also glad we have been doing our due diligence and researching pricing in the areas we are interested in. Something important to always remember is you make money when you buy, not when you sell. So never overpay for a property just because you really like it, it is never wise to overpay for an investment. Know your market and look at what the similar condition houses are going for. Don't just look at things that are listed on the market but what they have sold for recently.
People lose touch with reality because they have an attachment to their homes so they value it at a higher price than what it is actually worth. Don't get me wrong, I totally get it. I have an attachment to every one of my properties because I have owner occupied each one and have fixed them up to my liking so I get it. But I am a business woman I am thinking with my brain and not my heart, that's the difference. Emotions don't pay the bills just like emotions won't sell your house. Just sayin!
As an investor, I just believe in making a good purchase decision, fixing up your property, and maintaining it well. I believe in being fair to all parties and I do not like my time wasted and therefore I will not waste yours if I do not see an opportunity. I am not going to settle on anything just because I am in the market. New things always come along and people drop prices eventually. Best believe it! Alright guys, I am going to go enjoy the rest of my Saturday. I hope you all have a wonderful rest of your weekend and I promise I will do the same. I will keep everyone updated on my two flat adventure!
Hello everyone! It is a sunny Saturday afternoon and I FINALLY have a weekend to blog! I have been extremely busy the last few weeks with packing up the house and starting school, I am taking 3 classes this quarter. I also moved last weekend with tons of homework as well as cleaning and unpacking the house. This weekend I said I was not going to do ANYTHING! I have had something going on every weekend for pretty much the entire summer so I am happy to be sitting down and blogging. I am also enjoying a Tito's Strawberry Daiquiri because fuck it that's why!
So today I wanted to talk about my current real estate experiences. As I have stated in my other blogs, I am currently on the market looking for a two flat on the North side of Chicago. My budget is $350k and so far I have put in multiple offers on 3 different houses with no luck. I have noticed a trend with my house hunting lately that people are emotionally attached to their homes thus valuing it higher than what it is worth so the negotiations seem a bit ridiculous but it is not my first rodeo so this is expected in my two flat journey.
I always make sure to do my research before putting in an offer on a home. I look at the comps in the area, I make sure to ask my realtor their opinion, and do a financial analysis to see if its even worth it. If it is, I put in an offer that I feel is fair and wait for a response. The counter offers I have been receiving are pretty ridiculous considering that every place needs $20k minimum of work done and like $40-50k over market price. We send the comps over that are in the same condition, location, and size but nope, offer not accepted. Here is my thing, I will send you the initial offer and when you counter I will send my best and final offer. I don't play those games of going back and forth unless I am in love with a place. Additionally, I don't have time for games, my opportunity cost is more valuable than playing around about pricing. I will give you my best and you give me yours. Some people like to bluff and end up losing the entire deal over a couple thousand dollars and that is just foolish to me.
I don't mean to sound negative but it almost reminds me of the car buying experience, which I hate mind you (don't we all?), where you have this salesman who BS's you the whole time pretending like that's the best he can do and when you are about to get up then hes like "wait, okay. I am not allowed to do this but you look like a good guy so here is what I am going to do." Ugh, haha. So annoying. All the places we put offers on are still on the market, one for only a few days but the other two over 60 days now.
I am optimistic I will find something eventually and I am also glad we have been doing our due diligence and researching pricing in the areas we are interested in. Something important to always remember is you make money when you buy, not when you sell. So never overpay for a property just because you really like it, it is never wise to overpay for an investment. Know your market and look at what the similar condition houses are going for. Don't just look at things that are listed on the market but what they have sold for recently.
People lose touch with reality because they have an attachment to their homes so they value it at a higher price than what it is actually worth. Don't get me wrong, I totally get it. I have an attachment to every one of my properties because I have owner occupied each one and have fixed them up to my liking so I get it. But I am a business woman I am thinking with my brain and not my heart, that's the difference. Emotions don't pay the bills just like emotions won't sell your house. Just sayin!
As an investor, I just believe in making a good purchase decision, fixing up your property, and maintaining it well. I believe in being fair to all parties and I do not like my time wasted and therefore I will not waste yours if I do not see an opportunity. I am not going to settle on anything just because I am in the market. New things always come along and people drop prices eventually. Best believe it! Alright guys, I am going to go enjoy the rest of my Saturday. I hope you all have a wonderful rest of your weekend and I promise I will do the same. I will keep everyone updated on my two flat adventure!