Steps
- Make a detailed plan as to where you want to buy as to area. In today's market and with the power of the Internet you can make purchases anywhere.
- Go partners with someone else that you trust. This is especially important if you do not have a lot of cash and your credit is not over a score of 720
- Make an application to a mortgage company. You need to know what they can do for you and let them know what it is that you are looking to do. If you are going to buy single Family Homes or Multi-family buildings. Make sure they can make the loans and how much of the rental with they use towards qualifying you for a mortgage.
- Get a commitment fro the the bank Make sure you tell the loan officer what you want up front. Once you find the property you want to purchase you can make the deal a cash offer subject to appraisal.
- Start locating properties. Contact agents that specialize in working with Buyers and not an agent who works for the seller. However, a sellers agent can provide information about a property that a buyer's agent may not know. The realtor's fiduciary duty is to provide honest real estate help and knowledge to all parties in the transaction.
- Make a list of the type of properties have your agent send you print-outs of properties. Make a list of the ones you are interested in then go out by yourself and drive around the area. Don't be afraid to knock on doors in the area and ask questions of the people. Such as Schools, Shopping, Crime, you get the idea. You can also go online to check out the schools ratings and the crime stats for the area.
- Make appointments to see each one of them and take notes on what you like, expected repairs and what you do not like. Get the Seller Disclosure for each property. This will become a great tool down the road. Once you have all of the properties listed and all of your notes written down on each property.
- Research online and with your agent as to the true value of homes that have sold and are currently on the market and how long it has been on the market.Find out if it had been listed before by any other office or For Sale by Owner. This is a very important step. Remember the time a property is on the market will have a dramatic effect on your offer.
- Start placing offers on properties. Try to make your upfront money as big as you can and the settlement date as short as possible. Remember you have a mortgage already if you did what it says in step #3 and you are ready to make offers. Make sure your agent knows that you are going to move very quickly and you want the seller to move just as fast.
- Avoid emotions into the transaction. Don't buy properties because they look good or you like the interior. Make smart educated purchases from good data. Ignore the decorations and the pot pourri try to compare house size, location and age. You may be willing to redecorate a bargain if everything else is good.
- Buy the worst house in the best neighborhood to get a good deal.
Tips
- Remember this the last Sellers market.
- It is now a Buyers market... so go out and buy!
- If you are buying single family residences for investment purchases, you might consider all the for sale by owner properties before those sold by agents. Try www.forsalesbyowner.com to start your search.
Warnings
- When you ask that an agent reduce his commission, you are offering the agent less incentive to sell your home compared to your neighbors home where the commission is higher. All things being equal, neighborhood, home size, etc. an agent would do themselves an injustice by recommending yours at a lower commission over another at a higher commission.
Sources and Citations
- Florida Investment Property Appraisers Appraisal company in Florida specialize in mortgage loans including FHA, conventional, equity and other loans in Florida.
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