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An Investors State of Mind

By
Real Estate Agent with Prudential Verani Realty, Londonderry,New Hampshire

 

 

Deals, Deals, Deals to be made.

So why can't you see a deal when its right in front of you? Cause you've got an Investors State of Mind. You don't have to be an investor to feel the effects.

Man on the moon  

The location is perfect and the lot is just what you've been looking for yet the house needs work. A lot of work. The previous owner had a vision and was in the process of doing extensive renovations when he must have had a brain freeze. He suffered from emptied pockets.   

Realizing it's a bank owned property you know it's priced agressively to sell and has a lot of potential.  After all this could be your potential dream home.  You decide to make an offer.  

You then slip into Investor mode.  You calculate whats needed and your return.  Ooops!  Your return? This is your future HOME, right?  How do you measure your return on an emotional and personal gain?  But you do and decide to make a really low offer. After all the amount needed to finish the renovations plus the purchase price still leaves a strong equity base but not the thousands you imaginitively need, for your return on your investment.

Its not logical to try calculate a return on your investment unless your planning on flipping the property. Not when its your own home that you purchasing and renovating to your style.  

But thats my opinion, what are your feelings?

Posted by

ROSS THERRIEN -Realtor/Broker Associate

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 The opinions expressed on this blog are that of Ross Therrien and no one else’s and those providing comments are theirs alone, and do not reflect the opinions of Prudential Verani Realty, Inc. or any employee thereof. Prudential Verani is not responsible for the accuracy of any of the information supplied by us on this blog. All information deemed accurate in is our best opinion and should not be relied upon without personally verifying it yourself. The information we post is believed to be accurate at the time of the post, our opinion of the situation may change at a later time with newer information or under a different set of circumstances. In other words, we reserve the right to change our mind from time to time. We are open to your comments on the blog post, however, we do reserve the right to delete your comment, if we find it offensive or hateful. Let’s all play nicely in the sandbox.

 

Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

You still should probably compare the acquisition cost of the house with needed improvements against comps and other possible buys as well.  Of course, if your pockets are deep enough, there's nothing wrong with buying with your heart instead of a spreadsheet.

Oct 18, 2011 09:42 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

If I like it and feel the price is justified I buy it. I don't get caught up in the stupidity of numbers and ROI for my own items. I know some investments make money some lose money investments properties WILL be a winner both short and long term if you know what you are doing and autos ALWAYS lose value but we buy those like crazy don't we. For my personal place sure I want a good deal and one I believe I will sell for more than I paid for it when that time comes but give me a break ROI on your own home if that's your viewpoint go rent and invest all your money into the market... oops that loses value to now doesn't it.

Good post

Oct 18, 2011 09:46 AM
Ross Therrien
Prudential Verani Realty, Londonderry,New Hampshire - Londonderry, NH
Realtor, Broker Associate

Mike, sure you should comp it out but the number your looking for when its a personal investment should be more affordability not instant moonbased profit.

Oct 18, 2011 10:43 AM