What's Considered A Good Deal? ...for Example...
Is there a minimum % that you should look for in a deal to make it worth while?
For example, I spoke with an owner today who has a house worth $200K-210K. It is just less than 2yrs old and has never been lived in.
The owner is wealth and has a home out of the area and wants to sell this one but she is not motivated.
She payed around 120-140K. Based on our conversation I could probably get her to take 175K (or so).
In my mind this looks like too narrow of a margin and one I should not worry about.
Any comments?
Thanks
Well if you can get $25k out of it thats about 14% on the total value - if its going to be leveraged then that % will be more right? That sounds pretty nice to me. Keep in mind % for RE agent if you need on though.. my .02
consider this...any money you didn't have before is profit. it depends on the work that you do that justifies the profit though. if its a really straight deal with no bumps then if you could pick up 5k at the least then why not? even if you spend $299 on a ad in the paper..would you spend that to make 5k? pretty simply if you ask me.
keep in mind that at first...you shouldn't so much look at "will i make enough to retire this year??". look at the experience gained and taking the plunge to do the deals...thats worth more than the money in the beginning IMO.
i ranted, hopefully you see my point.