After a couple of months of researching online and going on a number of showings, I did it. I finally pulled the trigger.
I signed an offer to buy our first investment property. Sadly, we didn’t come to an agreement and contract, but I feel the hardest part has passed. Sometimes it takes A LOT to get over that hump and get the ball rolling. Now once I’ve found a place good enough to offer, I’m confident even more will come sooner. Fortunately, for real estate, there’s a number of checkpoints including a couple of days grace period and a due diligence period. And all the signatures and initialing just to put in an offer to the seller, can make anyone think twice.
But it took a few major steps to get there. Again, using a self-directed IRA as funding, I got a pre-approval from a bank, any bank really at this point (I’ll do the serious rate shopping once we’re under contract). And with that pre-approval letter in hand, I was able to sign and initial my way to an official offer without having to see my agent in person using a cool document sharing site, dotloop. Hopefully the super-convenience won’t get me in trouble one day…
Essentially, we couldn’t come to terms on a price because their latest round of a counter offer was only 2% less from their initial listing price. They won’t come down anywhere close to where I want to be, based on the numbers (cap rate, cash on cash return). And ALWAYS LISTEN TO THE NUMBERS! Maybe if it’s on the market in several weeks, we’ll make another offer.
The good news is that I’m over the hump. I placed an offer and got the taste of negotiating. It’s exciting and soon enough, we’ll find the right place for the right deal. Mr. Right Property – I’m gunnin’ for ya now.