At the risk of sounding like a motivational speaker...
"Separation Season" begins tomorrow.
August is the December of the summer:
- Less people will be in the office. More people will be on the beach.
- Less people will be in the gym. More people will be on the couch.
- Less people will be at the bank. More people will be at the bars.
No judgment. Just pointing out social norms.
August is a cheat code for anyone willing to double down and put in the work.
It's also a welcomed break for anyone who has been grinding all year.
Livin' La Vida Luna
From blown out diapers to blown out hair.
Growin' up way too fast.
What's Mr. Market Doing?
Who knows? Not this guy 🤷🏽♂️.
2Q22 GDP growth came out at -0.9%. This follows a -1.6% decline in 1Q22 GDP.
Every Tom, Dick, and Harry knows that two consecutive quarters of declines in GDP means a recession. Too bad Joe didn't get the memo.
On top of that, the Fed Funds rate is currently at 2.25% - 2.5% after last week's 0.75% hike.
Despite these two looming factors, mortgage rates have declined by about 0.50% from their recent peak and the stock market is recovering.
All of this to say...
I'm Gonna Keep Shootin' My Shot
Over the past few weeks, we've sent out multiple offers on properties listed on the MLS.
I typically don't make offers on the MLS, but I think the retail market is scared right now and I'm ready to pounce.
It started with 54 Commonwealth in New Providence.
- Originally listed on 6/13/22 for $589K
- Price Reduced on 7/1/22 to $519K
- We made an offer on 7/10/22 for $450K
- Sellers accepted our offer on 7/13/22
Unfortunately, while we were under attorney review, the sellers received another offer closer to their full asking price.
On July 20th, the deal died.
A similar thing happened in lockstep with another property as well.
This property in Westfield is listed at $640K, we offered $600K cash with a 30-day close as soon as it hit the market.
The sellers liked the terms of our offer but ultimately rejected us because they weren't willing to move at that price as quickly as we were.
That didn't slow us down.
As of today, we're waiting to hear back on another offer.
Will the 3rd time be the charm? Maybe. Maybe not. Or maybe it doesn't matter.
If the sellers don't accept this offer, it's not going to stop us from taking another shot.
There's a quote from Kobe I think about often:
"I would go 0-30 before I would ever go 0-9. Going 0-9 means you beat yourself, you psyched yourself out of the game."
Let's see if I can make 31 offers in August. #MambaMentality
The Importance of Cash Reserves
Lastly, here's a Twitter thread I wrote on the importance of keeping ample cash reserves.
It's a cautionary tale of my experience with a non-paying tenant.