Being in the investment real estate business since 1985 and 100's of homes under my belt I have seen a lot of issues that come up in buying investment real estate. These issues do not need to happen and I want to get a few pointers on how to handle some major issues when buying investment real estate.
One way to make sure you at least know the issues is getting a home inspection and a quote on make a property ready to sell or lease. This gives you a blueprint of the condition of the home and what is needed to get to your final product.
Anytime we purchase a rehab home we always do a inspection and a quote for repairs. We sometimes have the seller do the repairs and sometimes we do not. It is really according to the seller and how good the deal is.
Great example is a home we are doing in Chagrin Falls Ohio, it was inspected and had a lot of issues. We ask for some money off the sale price and got quotes on the repairs that needed to be done. After all that we had a total cost of what was needed and we knew what the homes are worth. The numbers all worked and we closed the home and it is currently under construction.
If the inspections and negotiations where not done ahead of purchasing the property then there would have been a lot of expensive cost that would have hurt the profit foe our client.
Other issues is getting the property leased or sold for the amount quoted. You need a Licensed Real Estate Agent that can get you the rents and homes sold in the areas you are purchasing. I have seen a lot of unlicensed property sellers that had numbers that where not correct. So please use a licensed real estate agent that have all the training and tools for that.
The other issues you might run into also in construction sometimes. You need to have your contractor/agent send you pictures and videos of the work being done during the rehab. This does two things, first it keeps you updated and knowledgeable on your rehab process.
When you watch the videos you may have questions or concerns that you need to ask the contractor. You also know that there is someone going out to check the process on your home and knowing if the home is on track to be done on time.
The pictures and videos also assist you in insurance claims and appraisals. They are a great resource to simply prove that you did improve the home. I have personally used the pictures on several appraisals to prove that the work was done.
The key is getting someone who already does all this in their business. As I mentioned I have been in this business since 1985. Need less or no issues in investment real estate?
Call me I'm Brett 216-703-5740 EXP Realty or Text "income" 1-937-529-0745
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0 Comments
Thank you