THIS is the week. The week I start a new chapter in my life. Only...not so fast...
After a conversation last week with my Acquisitions Manager (AM) regarding a property I really liked (LEAD #2), I was promised three things by Tuesday (yesterday) before I could commit:
1. An inspection report.
2. Additional photos.
3. Details on the renovation Scope of Work.
...SO, I followed up as nothing was communicated to me.
I was immediately caught off guard by news from my AM: the property I was VERY interested in, the house that I spent hours researching, the house that I envisioned already in my portfolio...WAS SOLD OVER THE WEEKEND! What??? YEAH...that sucks...
As I sat around waiting for additional information on the property, it was purchased right under my nose. Frustration in lack of communication overwhelmed me. How did my AM alleviate this frustration? He sent me another lead:
Numbers look good, but...wow....this place looks like crap. I have to be optimistic with these low valued properties. I have to constantly remind myself - this is not the Bay Area! It's clearly vacant with boarded up windows and needs a very HEAVY rehab of $22,000.
Per routine now, I hop on the research train. Red flags pop up immediately - crime ridden neighborhood, street view revealed an under-developed area, and the biggest issue...it's right next to a bar. I can already see drunkards peeing on the siding at 3am. I also see vacancy issues because, who wants to live next to a bar?? I say NO to this property just as quick as I received it.
-Immediately after finding a property, do your research, and if interested, put it under contract right away. In this case, there would have been no risk in putting it under contract. Deals won't casually fall into your lap and people aren't going to be patient with you. Take action, jump in, and be aggressive if you find a deal.
-Always over-communicate, set timelines, and set expectations. If you aren't getting answers, don't be afraid to speak up.
As stated above, I immediately rejected this lead, specified my reasons, and re-iterated my investment needs. Now, I'm back in waiting mode and will impatiently stay on the lookout for new leads from my Acquisitions Manager. This is where you need to find balance between patience and being aggressive.