The life and times of an Arizona Investor

This will be my personal journal to document my failures and successes during my real estate experiences in Arizona. All stories, thoughts, and successes will be documented..

Wednesday, March 16, 2005

You make more money by saying "no"

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!!
|| Bginvestor, 7:06 PM

1 Comments:

Excellent advice! I've made a total of 17 offers of various sorts. Of those, only one was accepted thus far, and I'm already going through buyer's remorse. I keep thinking worst-case scenario, but the numbers still remain positive, so I've fretting over nothing.

You are absolutely right, though, NEVER EVER purchase a property that will break even or go negative (or even just make a slim profit) in the end just to say you've got one. There are a slew of good deals out there, you just have to find them using persistence.

Keep up the good work! You are definately an inspiration to read on a daily basis!
Blogger Steve, at 5:35 AM  

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