I saw a post on one of the forums here on BiggerPockets recently where someone asked:
How will my end buyer know that my house is a good deal?
My initial response was that this person was really asking, “How do I convince someone that my house is a good deal even though it may not be?” This question just shouted “I really don’t have a clue what I am doing”.
We Were All Newbies Once
The fact is that we were all brand spanking new at one time. And if the truth be told, we all had this same thought at one time or another; that uncertain feeling down deep in the pit of our stomach right after we put in an offer on a house. Is this really a good deal? That fellow called “let’s question our decision” shows up right after we sign on the dotted line.
I believe that there is one skill that is absolutely crucial for anyone even thinking about investing in real estate to master first (and quickly). What skill is that?
You Have to Learn What a Good Deal is!
I will take that thought one step further. You have to learn pretty quickly how to determine what makes a deal a good deal in the eyes of a seasoned investor. It’s just not enough to eke out a marginal deal, or god-forbid a certifiable bad deal.
Now you might be asking; if I plan to rehab the house and sell it to a retail buyer, what does it matter if it would be a good deal for another investor? Trust me; it matters.
1. After the house is completed it will be time to get it sold. Then you will be forced to list it for a price that reflects what you have in the house rather than what …read more