We located a real fixer upper this week for $185,000. It needed about $50,000 and would be worth $280,000.It was really a dump and needed significant rehab. There were 6 offers and It went for full price the first day on the market.
Interestingly enough, our offer was $20,000 less. When I asked the agent if we could be in a back up position, they agreed.
This is my favorite type of deal and this is why. Lessons to be learned:
1. Always stick to your numbers. A feeding frenzy can sometimes make you feel pressure that get you away from your numbers. Put a pencil to it and stick to it.
2. Always be in a back up position. I do not care if the next deal is cash. Anything can happen! My ratio of success is roughly 50% of back up offers go through. You do not get all of them but when they go through it is awesome.
3. There are more fish in the sea. This deal came up this week there will be another next week. It was just fun to see how many offers came in on the deal and how active this market really is. Like I said, this market is a great opportunity to get some good deals.
