I remember a talk from a multi-millionaire that said , " You make more money by saying no, than yes"
How true! For beginning investors, its critical to have successful deals or it may be your last. There's just not enough room to make severe mistakes! So far, we haven't been one of them!
After submitting 20 bids, and not buying a house, how easy is it to just buy one that is margin? Don't do it.. Wait for the good deal, it will come if you market properly.
I've received several calls this week on marginal deals with 90 LTV. It just doesn't work for me. I buy houses two ways, its a rental or a flip (I've never be able to find deals that I could wholesale). If I can't get cashflow , I don't buy the rental. If I can fix up the property and make money allowing for buying, holding, and selling costs, I pass as well.
I've heard too many investors that over leverage themselves to buy property. I'll be talking to one of these guys this weekend, he has two houses with a negative cash flow of $300 a month (thanks to rising interest rates). Don't let this happen to you!!