Help With First Deal
Hi everyone, This is my first deal and I'm very nervous. I found a property that is listed for $130,000 and is appraised at $150,000. I am leaning towards making an offer on this property. I need advice on how to go about financing this deal since my credit is not very good. How do I put together funding for this deal. I Appreciate any advice. Thank you! 
DO NOT trust the sellers assessment of the value. That's the quickest way to bury yourself alive. Get your own comps that you can be confident with.
Are you flipping it? If you are you have VERY slim margins. Too slim in my opinion. I think you'd be lucky to make money on this deal unless you orchestrate it perfectly.
How are you buying it? Conventionally? Sub. To? What is your exit strategy?
There might be money to be made, but you need to be SURE!
Sorry if I sound pessimistic, but do your due dilligence or you'll get burned.
I agree. Due dilligence, totally.
I've been to Waterbury. Nice town. However, I would think that prices would be significantly higher there. Is this house in a good neighborhood? Is it somewhere that people would LOVE to live or where you'll have to convince them? Like Hibby, I hate to be pessimistic, but I'd rather give you honest advice than blow smoke at you to make you FEEL good. End consumers FEEL good about their houses. We make money because we can separate from our feelings and use good sense.
If this house meets all the criteria that you have set for yourself, low ball the offer. I've been told that if your initial offer doesn't embarass you, it's too high.
This is easy for me to say because I deal primarily in REO properties. It's easy to lowball the banks. They expect it. It's not embarassing.
Hope this helps. Good luck. Any other questions, let us know.
Ronnie
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