Next Attempt
Once I had my team in place (hungry real estate agent, contractor, property manager, lender) I was feeling pretty confident so the next potential deal that came up on the MLS was my opportunity to try to be more efficient. I called up my agent and had him meet with the home inspector and contractor at the property. It was a real mess. I ran the numbers and talked to my agent about making another cash offer. Unfortunately there had already been cash offers made for the property well above anything I could even consider offering. This is when I knew things were going to get tough, especially in Spokane.
Moving to Dallas
I started looking around the country for other markets that had similar economic characteristics to Spokane and ultimately zeroed in on Dallas, TX. I reached out to a wholesaler who looked incredibly promising. They referred me to a property manager who was also a Real Estate Agent. There were a couple of MLS deals that looked very promising and I ultimately targeted a deal in what I consider to be an up and coming part of town, just outside the city. This seller’s agent was holding off on accepting offers for a few days so I figured I would take the opportunity to sharpen my pencil before submitting an offer. I had a Facetime tour with my agent, sent out a home inspector to complete a report, and analyzed both ARV and rental rates in the area. Once all the numbers came in I was pretty confident as my offer price was above list. I waived all contingencies and offered cash (this property would not qualify for conventional financing). Property was listed for $62,500. I offered $62,900 and figured I could stretch to $65,000 in a best and final situation. I had $45,000 budgeted for repairs, largely due to foundation issues discovered in the inspection. I came up with an ARV of $145,000.
Ultimately the offer was rejected due to a significantly higher offer.
I am currently working to expand my network in the Dallas area and maintaining my relationships in Spokane. 2020 has been a year of uncertainty which I have allowed to hold me back from continuing to aggressively pursue my Real Estate Investing goals. No More. There may be a lot of competition and slim supply but I know that by putting in the time and productive effort I can continue to grow this business. Stay tuned for more twists and turns.