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Mistake #1
Oklahoma Investors take TOO Long. Good deals dont wait around for
indecisive people. Many people think a deal to death. One way to lower
your anxiety level with a deal is to move forward provisionally (i.e. with a
clause of some sort.)
Mistake #2
Oklahoma Investors trust the sellers numbers. Even if there are
only good intentions, most sellers just arent knowledgeable, and they are
inherently a bit biased.
Mistake #3
Oklahoma Investors trust appraisals. An appraisal really isnt
meaningful, unless YOU hired the appraiser, and YOU gave the instructions,
and YOU are handing the appraiser the check.
Any individual can influence an appraiser to appraise a $100,000 house for
as little as $80,000 and as high as $120,000 (or more). Thats a 20%
variance! Thats a lot to have in a marginal deal. So take any appraisal
the seller hands you in the spirit that it was intended--as a MARKETING
piece!
Mistake #4
Oklahoma Investors do their math in pencil. The next time you
catch yourself thinking its okay to fudge your numbers a little to make
the deal cash flow or the rehab payoff, BEWARE! Some Oklahoma Investors have a
tendency to play with the number a little to make them show a marginal
deal is better than it really is.
Mistake #5
Oklahoma Investors overestimate market rents. This one happens all
the time. The way you know what a house will rent for is to do a market rent
survey. The rents listed in the paper may or may not be accurate.
Mistake #6
Oklahoma Investors overestimate as is value. So many
Oklahoma Investors
forget that to turn a house in 60 days or less requires the price to be
REAL--not pie in the sky. Be conservative in your estimate of value going
into the deal. The worst case then is that you make MORE money than you
thought you would!
Mistake #7
Oklahoma Investors get bogged down in process.
Mistake #8
Oklahoma Investors worry about the house on the first layer
analysis. On your first pass, you are only concerned about three things:
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Why is the seller selling (motivation level)?
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Is there any equity?
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Would the property cash flow if you held onto it?
Mistake #9
Oklahoma Investors underestimate the time it will take to
flip, fix, fill, or sell. Some people, have bought a lot of houses from
Oklahoma Investors who got stuck
with holding costs too much for them to handle. Be careful here.
Mistake #10
Oklahoma Investors SKIP analysis until the deal falls apart on
its own. Wishful thinking isnt pretty.
Bonus Mistake #11
Oklahoma Investors hide behind analysis when they are AFRAID to
act!
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