What to do AFTER your offer has been accepted?
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
What to do AFTER your offer has been accepted?
Most Popular Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votesHere is your list in order of the process of buying an investment property...flip or hold:
1 - Put your Power Team together first. Rehabber, RE AGent (investor friendly), title company, funding sources, partners if needed, etc...
2 - Analyze the property's Asking Price (AP) against the sold comps in the area (make sure you're analyzing "apples to apples". Same immediate area, same size home, etc..). Subtract your profit (always pay yourself first) from the Sold Comps in that micromarket, subtract your desired rehab cost based on what the maximum rehab you can/will do, subtract any other costs such as cost of money (Hard Money, etc...), and that gives you the maximum offer. NEVER GO OVER THAT...EVER.
3 - Have your RE Agent make your offer.
4 - Negotiate price to buy, but NEVER agree on ANY price (and don't rationalize here saying, "I can get my rehab lower") higher than the maximum you calculated out to be in Step #2
5 - If you don't get an accepted offer to your liking, move on to another deal. Don't negotiate against yourself. The goal here isn't to get the property...it's to get the deal. Big difference.
6 - If you get YOUR number/offer accepted, now go and inspect the property within the agreed upon inspection period with your rehabber to see if the property "plays nice" as far as the needed rehab matching up with your maximum rehab estimate. If it doesn't...pass. That's what the inspection period is there for. Just make sure you do this during the inspection period so you get your Earnest Money back. Never inspect a property before you make an offer....big waste of everyone's time, and by the time you decide to make an offer, I've already got the property.
7 - If your inspection gives you the "thumbs up", your RE Agent will set up closing. Make sure you have the funds ready for closing.
8 - Close
9 - Rehab
10 - Exit strategy...either rental or flip
Before you do any of this, you should have found your "micromarket" doing market analysis.
81 Replies
- Investor · Chandler, AZ · Member since 2015 · 409 posts · 214 votes9y
get you a team together
find you a good agent a good contractor a tittle company a money guy a letter of funding
all the basic tools
now go make a offer
with contingencies or a string of them whatever makes you comfortable
have your people get to the site and do a thorough walk through with a nice check sheet
now you can negotiate the offer
I have to do this and this and this so I can give you this for the property
this should get you started and keep you out of hot water
enjoy
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Stanley Parsley:
get you a team together
find you a good agent a good contractor a tittle company a money guy a letter of funding
all the basic tools
now go make a offer
with contingencies or a string of them whatever makes you comfortable
have your people get to the site and do a thorough walk through with a nice check sheet
now you can negotiate the offer
I have to do this and this and this so I can give you this for the property
this should get you started and keep you out of hot water
enjoy
Yes I understand those steps but I don't understand the inspector/contractor issue hence the reason for the post specifically inquiring on that particular process. Thank you!
- Investor · Chandler, AZ · Member since 2015 · 409 posts · 214 votes9y
my inspector is my contractor
licensed in both categories
you could do it either way contractor/inspector
inspector/contractor
your contractor better know building codes and what the state or city requires
as well as the inspector
now my brother he is well out of the box
he wont do a property without the contractor/inspector and the designer at the property at the same time, I have watched it and it is a good time
enjoy
- Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes9y
Maybe this will help clear things up. Of course, this is just one way of doing things. Everyone will have their own method that suits them best.
Here's a general overview of the deal process:
- Find a Prospective Rehab Property
- Perform Quick Analysis to Determine if #'s Make Sense to Walk the Property
- Perform Initial Property Walkthrough & Inspection
- Create a Detailed Estimate of Repairs
- Analyze the Maximum Purchase Price you should offer for the Property
- Make an Offer / Negotiate Offer with Seller
After Deal Acceptance
- Develop detailed Scope of Work for contractor proposals
- Establish Inspection/Contractor Walkthrough Date - Try to have everyone show up on one date. I'd just pay for a separate inspection before doing a contractor walkthrough, but that's just me doing my own due diligence
- Solicit contractor proposals
- Receive contractor proposals
- Make go/no-go decision to purchase the property
- 9yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
Here is your list in order of the process of buying an investment property...flip or hold:
1 - Put your Power Team together first. Rehabber, RE AGent (investor friendly), title company, funding sources, partners if needed, etc...
2 - Analyze the property's Asking Price (AP) against the sold comps in the area (make sure you're analyzing "apples to apples". Same immediate area, same size home, etc..). Subtract your profit (always pay yourself first) from the Sold Comps in that micromarket, subtract your desired rehab cost based on what the maximum rehab you can/will do, subtract any other costs such as cost of money (Hard Money, etc...), and that gives you the maximum offer. NEVER GO OVER THAT...EVER.
3 - Have your RE Agent make your offer.
4 - Negotiate price to buy, but NEVER agree on ANY price (and don't rationalize here saying, "I can get my rehab lower") higher than the maximum you calculated out to be in Step #2
5 - If you don't get an accepted offer to your liking, move on to another deal. Don't negotiate against yourself. The goal here isn't to get the property...it's to get the deal. Big difference.
6 - If you get YOUR number/offer accepted, now go and inspect the property within the agreed upon inspection period with your rehabber to see if the property "plays nice" as far as the needed rehab matching up with your maximum rehab estimate. If it doesn't...pass. That's what the inspection period is there for. Just make sure you do this during the inspection period so you get your Earnest Money back. Never inspect a property before you make an offer....big waste of everyone's time, and by the time you decide to make an offer, I've already got the property.
7 - If your inspection gives you the "thumbs up", your RE Agent will set up closing. Make sure you have the funds ready for closing.
8 - Close
9 - Rehab
10 - Exit strategy...either rental or flip
Before you do any of this, you should have found your "micromarket" doing market analysis.
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Bob Okenwa:
Maybe this will help clear things up. Of course, this is just one way of doing things. Everyone will have their own method that suits them best.
Here's a general overview of the deal process:
- Find a Prospective Rehab Property
- Perform Quick Analysis to Determine if #'s Make Sense to Walk the Property
- Perform Initial Property Walkthrough & Inspection
- Create a Detailed Estimate of Repairs
- Analyze the Maximum Purchase Price you should offer for the Property
- Make an Offer / Negotiate Offer with Seller
After Deal Acceptance
- Develop detailed Scope of Work for contractor proposals
- Establish Inspection/Contractor Walkthrough Date - Try to have everyone show up on one date. I'd just pay for a separate inspection before doing a contractor walkthrough, but that's just me doing my own due diligence
- Solicit contractor proposals
- Receive contractor proposals
- Make go/no-go decision to purchase the property
Thank you for the reply but it actually confused me more. You said to perform an initial walk through and inspection BEFORE my offer even gets accepted? That sounds like a waste of valuable time and money since I'll likely be seeing lots of properties. I couldn't imagine paying for an inspection on each and every property I'm considering before an offer is even accepted. Also it didn't clarify if I need an inspector to come out to the property, a contractor to come out or both?
- Investor · Charlotte, NC · Member since 2017 · 321 posts · 157 votes9y
@Joe Villeneuve Great insight. "mirocmarket" ? And also of course you base your ARV off of the comps recently sold in the area. How do you make sure you get your appraisal to match the ARV ? So when you refniance, you will get a certain percentage of the ARV # ?
- Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes9y
If you want to get an idea of what you're working with, you're probably going to want to walk the property and do your own inspection and take notes and use those notes to come up with an estimated rehab. At that point, you can determine if the numbers make enough sense to move forward. If you want to make an offer based solely off of internet pictures, then you can to that as ultimately it will be a method of your choosing. I'd personally want to see the property myself and take notes so I can come up with my own rehab costs. Some people offer on houses site unseen and then do the inspection and walkthroughs after an accepted offer. But you're going to need a scope of work to give to a contractor so you're going to have to see the property yourself at some point. My whole thing is I wouldn't write an offer on a house I wasn't serious about and for me to be serious about it, I'd need to due my own due diligence before getting any extra parties involved.
As for the inspection, I'd get one to before the contractor walk as you can use the inspector's info as part of your SOW if necessary.
Like I said, this is just what I'd do as a new investor. Everyone has their own methods to accomplishing what is ultimately the same end result.
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Joe Villeneuve:
Here is your list in order of the process of buying an investment property...flip or hold:
1 - Put your Power Team together first. Rehabber, RE AGent (investor friendly), title company, funding sources, partners if needed, etc...
2 - Analyze the property's Asking Price (AP) against the sold comps in the area (make sure you're analyzing "apples to apples". Same immediate area, same size home, etc..). Subtract your profit (always pay yourself first) from the Sold Comps in that micromarket, subtract your desired rehab cost based on what the maximum rehab you can/will do, subtract any other costs such as cost of money (Hard Money, etc...), and that gives you the maximum offer. NEVER GO OVER THAT...EVER.
3 - Have your RE Agent make your offer.
4 - Negotiate price to buy, but NEVER agree on ANY price (and don't rationalize here saying, "I can get my rehab lower") higher than the maximum you calculated out to be in Step #2
5 - If you don't get an accepted offer to your liking, move on to another deal. Don't negotiate against yourself. The goal here isn't to get the property...it's to get the deal. Big difference.
6 - If you get YOUR number/offer accepted, now go and inspect the property within the agreed upon inspection period with your rehabber to see if the property "plays nice" as far as the needed rehab matching up with your maximum rehab estimate. If it doesn't...pass. That's what the inspection period is there for. Just make sure you do this during the inspection period so you get your Earnest Money back. Never inspect a property before you make an offer....big waste of everyone's time, and by the time you decide to make an offer, I've already got the property.
7 - If your inspection gives you the "thumbs up", your RE Agent will set up closing. Make sure you have the funds ready for closing.
8 - Close
9 - Rehab
10 - Exit strategy...either rental or flip
Before you do any of this, you should have found your "micromarket" doing market analysis.
Thank you Joe these are the exact steps I was planning on taking so at least I know I was right on track. My main thing is still trying to understand if I need an inspector or not? Can a contractor "inspect" the property in the same fashion and to the same standards as an inspector would? If so then it seems like there's no real need for an inspector as it would just be wasted money since the GC could knock out the "inspection" and "rehab estimates" all in one shot. I didn't think GC's do inspections when they come out to give bids on properties. I thought they simply did a quick walk through and go over the rehab you want to do but not actually inspect the property?
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Bob Okenwa:
If you want to get an idea of what you're working with, you're probably going to want to walk the property and do your own inspection and take notes and use those notes to come up with an estimated rehab. At that point, you can determine if the numbers make enough sense to move forward. If you want to make an offer based solely off of internet pictures, then you can to that as ultimately it will be a method of your choosing. I'd personally want to see the property myself and take notes so I can come up with my own rehab costs. Some people offer on houses site unseen and then do the inspection and walkthroughs after an accepted offer. But you're going to need a scope of work to give to a contractor so you're going to have to see the property yourself at some point. My whole thing is I wouldn't write an offer on a house I wasn't serious about and for me to be serious about it, I'd need to due my own due diligence before getting any extra parties involved.
As for the inspection, I'd get one to before the contractor walk as you can use the inspector's info as part of your SOW if necessary.
Like I said, this is just what I'd do as a new investor. Everyone has their own methods to accomplishing what is ultimately the same end result.
What does an inspector typically charge? If you pay for an inspection on a property after an accepted offer has already been made and it turns out there are more issues than you are comfortable with or the issues discovered don't allow the numbers to work for the deal, then what happens? I'm assuming you are out of the money you paid for the inspection?
- 9yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
Originally posted by @Isiah Ferguson:
@Joe Villeneuve Great insight. "mirocmarket" ? And also of course you base your ARV off of the comps recently sold in the area. How do you make sure you get your appraisal to match the ARV ? So when you refniance, you will get a certain percentage of the ARV # ?
You can't make contact with the appraiser, and neither can the bank. So there is no way you can guarantee anything. This is why your market analysis is so important.
However, I have come up with a way of doing this.
First, the lender can't pick the appraiser. They usually come from a pre-approved list and is rotated. You can get that list from the bank, and find out which appraisers are the conservative ones, and which are the aggressive ones. You want the aggressive ones. Again, you can't pick them. So why do I do this?
Second, before you apply for the loan, you use one of their aggressive appraisers to do an "exploratory appraisal". That means it's not for the purpose of a loan, it's for informational purposes only. You do this within a week or two of when you will be applying for the loan. You can make contact (obviously you have to) with the appraiser and have conversation with the appraiser this way.
This puts an aggressive appraisal on record...one from the proposed lenders own list. Hey, it might end up even being the same appraiser that does the appraisal for the loan.
Third, you apply for the loan. If the appraisal comes back low, and your appraisal came in higher, you can point to your appraisal and protest the bank's. In most cases, with a valid complaint (and this would qualify), they will/should throw out the bank's appraisal and have it redone (they won't use your's...but they might)...at the bank's cost.
This doesn't guarantee anything, but it gives you at least some sort of proactive control.
- Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes9y
In my area, an inspection usually goes for $300-500. If the inspector finds a ton of problems, you can take that back to the seller and renegotiate the price down, ask the seller to make the fixes, go ahead with the deal and property as-is, or cancel the deal and get your earnest money back. I wouldn't look at it as out of the inspection money, I look at it more like "I just saved myself a ton of money and headaches if this wasn't caught upfront". Inspection costs are just part of doing business ultimately.
- 9yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
Originally posted by @Brian Garrett:
Originally posted by @Joe Villeneuve:
Here is your list in order of the process of buying an investment property...flip or hold:
1 - Put your Power Team together first. Rehabber, RE AGent (investor friendly), title company, funding sources, partners if needed, etc...
2 - Analyze the property's Asking Price (AP) against the sold comps in the area (make sure you're analyzing "apples to apples". Same immediate area, same size home, etc..). Subtract your profit (always pay yourself first) from the Sold Comps in that micromarket, subtract your desired rehab cost based on what the maximum rehab you can/will do, subtract any other costs such as cost of money (Hard Money, etc...), and that gives you the maximum offer. NEVER GO OVER THAT...EVER.
3 - Have your RE Agent make your offer.
4 - Negotiate price to buy, but NEVER agree on ANY price (and don't rationalize here saying, "I can get my rehab lower") higher than the maximum you calculated out to be in Step #2
5 - If you don't get an accepted offer to your liking, move on to another deal. Don't negotiate against yourself. The goal here isn't to get the property...it's to get the deal. Big difference.
6 - If you get YOUR number/offer accepted, now go and inspect the property within the agreed upon inspection period with your rehabber to see if the property "plays nice" as far as the needed rehab matching up with your maximum rehab estimate. If it doesn't...pass. That's what the inspection period is there for. Just make sure you do this during the inspection period so you get your Earnest Money back. Never inspect a property before you make an offer....big waste of everyone's time, and by the time you decide to make an offer, I've already got the property.
7 - If your inspection gives you the "thumbs up", your RE Agent will set up closing. Make sure you have the funds ready for closing.
8 - Close
9 - Rehab
10 - Exit strategy...either rental or flip
Before you do any of this, you should have found your "micromarket" doing market analysis.
Thank you Joe these are the exact steps I was planning on taking so at least I know I was right on track. My main thing is still trying to understand if I need an inspector or not? Can a contractor "inspect" the property in the same fashion and to the same standards as an inspector would? If so then it seems like there's no real need for an inspector as it would just be wasted money since the GC could knock out the "inspection" and "rehab estimates" all in one shot. I didn't think GC's do inspections when they come out to give bids on properties. I thought they simply did a quick walk through and go over the rehab you want to do but not actually inspect the property?
Go through the property, after you get an accepted offer, with your rehabber. If you see something that throws up a red flag, or an unkown, you can either get a formal inspection or just pass on the deal. The key is to base your rehab estimate for your bid on what rehab you are capable, and would be willing to do...not on what the property needs. If the property needs rehab you can't, or don't want to do, then you're going to pass on the property anyway (or at least you should). It takes far less time to analyze and make offers than it does to do inspections...and far less costly. You are going to inspect all the homes you are going to make offers on anyway, shy do inspections on the homes you won't be making offers on too? It's a numbers game, and you are the one dictating the numbers ($$$$$) not the property. If the property doesn't want to "play nice", as in the property numbers don't match up, you move on. You don't base your offer on what rehab the property needs, you base it on the rehab budget your analysis dictates....so start there.
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
@Bob Okenwa Would a contractor be able to discover the same potential issues an inspector would? I didn't think that was their job and/or responsibility?
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Joe Villeneuve:
Originally posted by @Brian Garrett:
Originally posted by @Joe Villeneuve:
Here is your list in order of the process of buying an investment property...flip or hold:
1 - Put your Power Team together first. Rehabber, RE AGent (investor friendly), title company, funding sources, partners if needed, etc...
2 - Analyze the property's Asking Price (AP) against the sold comps in the area (make sure you're analyzing "apples to apples". Same immediate area, same size home, etc..). Subtract your profit (always pay yourself first) from the Sold Comps in that micromarket, subtract your desired rehab cost based on what the maximum rehab you can/will do, subtract any other costs such as cost of money (Hard Money, etc...), and that gives you the maximum offer. NEVER GO OVER THAT...EVER.
3 - Have your RE Agent make your offer.
4 - Negotiate price to buy, but NEVER agree on ANY price (and don't rationalize here saying, "I can get my rehab lower") higher than the maximum you calculated out to be in Step #2
5 - If you don't get an accepted offer to your liking, move on to another deal. Don't negotiate against yourself. The goal here isn't to get the property...it's to get the deal. Big difference.
6 - If you get YOUR number/offer accepted, now go and inspect the property within the agreed upon inspection period with your rehabber to see if the property "plays nice" as far as the needed rehab matching up with your maximum rehab estimate. If it doesn't...pass. That's what the inspection period is there for. Just make sure you do this during the inspection period so you get your Earnest Money back. Never inspect a property before you make an offer....big waste of everyone's time, and by the time you decide to make an offer, I've already got the property.
7 - If your inspection gives you the "thumbs up", your RE Agent will set up closing. Make sure you have the funds ready for closing.
8 - Close
9 - Rehab
10 - Exit strategy...either rental or flip
Before you do any of this, you should have found your "micromarket" doing market analysis.
Thank you Joe these are the exact steps I was planning on taking so at least I know I was right on track. My main thing is still trying to understand if I need an inspector or not? Can a contractor "inspect" the property in the same fashion and to the same standards as an inspector would? If so then it seems like there's no real need for an inspector as it would just be wasted money since the GC could knock out the "inspection" and "rehab estimates" all in one shot. I didn't think GC's do inspections when they come out to give bids on properties. I thought they simply did a quick walk through and go over the rehab you want to do but not actually inspect the property?
Go through the property, after you get an accepted offer, with your rehabber. If you see something that throws up a red flag, or an unkown, you can either get a formal inspection or just pass on the deal. The key is to base your rehab estimate for your bid on what rehab you are capable, and would be willing to do...not on what the property needs. If the property needs rehab you can't, or don't want to do, then you're going to pass on the property anyway (or at least you should). It takes far less time to analyze and make offers than it does to do inspections...and far less costly. You are going to inspect all the homes you are going to make offers on anyway, shy do inspections on the homes you won't be making offers on too? It's a numbers game, and you are the one dictating the numbers ($$$$$) not the property. If the property doesn't want to "play nice", as in the property numbers don't match up, you move on. You don't base your offer on what rehab the property needs, you base it on the rehab budget your analysis dictates....so start there.
I understand these points but I'm still caught up on the contractor/inspector issue in itself. What I'm not following is the process of evaluating the house after the offer has been accepted to know if I want to proceed with the deal or not. Not from a numbers standpoint. Purely from a structural standpoint. I thought when a contractor comes out they are coming to give you a price on the rehab (kitchen, bathrooms, flooring, painting, etc) and not actually "inspecting" the home for plumbing, electrical, foundation, etc. So I was under the impression that you needed to have an inspection done first and then you give that information to the contractor along with the rehab stuff you wanted to do in order to get your official quote. Is this inaccurate?
- Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes9y
In most cases, the inspection will be more thorough and take longer than a GC walkthrough. Out here, there's a company that offers warranty on their inspections that cover mechanical, structural, mold, and termites. Should they fail/appear after their inspection if they didn't include it in their report. Also, an official inspection report can help negotiate the price vs a rehab estimate from a GC who may not be a licensed inspector.
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
@Bob Okenwa It sounds like I might have to bite the bullet and just pay for an inspection first at least while I'm still new and learning until I get the gist of things. Then I can take the information I receive from the inspector and have that in the back of mind to help determine if a deal works when the GC's come out to give bids on the rehab work. I just didn't want to pay for an inspection on every property if I didn't actually need to since most will be rehab and flip or BRRRR properties.
- Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes9y
I feel you man. I'min the same boat as you and had the same thoughts and talked it over with my realtor who also does flips and rentals and was told to just get the inspection as it's a drop in the bucket compared to having to fix something that is overlooked and not negotiated on. Inspections are just another tool in the negotiation belt and part of due diligence. I've read a lot on the subject and J Scott's Book on Flipping Houses had a chapter referencing getting an inspection done then getting your GC and subs in to give you a bid afterwards. Good read if you haven't come across it yet.
- 9yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
This is one of the connections to my statement on rehab of "what you are willing and able to do". You should go through one house for an inspection that you know has a number of problems. You don't plan on buying it, but you will take your inspector through it WITH YOU. Take notes. They will give you a detailed report. If you have an option as to the extent/level of the written report, go for the most details. This is your education. You won't find any better one. You got field experience, and a textbook along with it. Do this a couple of times with the same inspector. Make sure the property is in bad shape...more knowledge gained.
You're training your eyes.
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Bob Okenwa:
I feel you man. I'min the same boat as you and had the same thoughts and talked it over with my realtor who also does flips and rentals and was told to just get the inspection as it's a drop in the bucket compared to having to fix something that is overlooked and not negotiated on. Inspections are just another tool in the negotiation belt and part of due diligence. I've read a lot on the subject and J Scott's Book on Flipping Houses had a chapter referencing getting an inspection done then getting your GC and subs in to give you a bid afterwards. Good read if you haven't come across it yet.
Thanks for your insight Bob I really appreciate you sharing your thoughts!
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Joe Villeneuve:
Originally posted by @Brian Garrett:
@Bob Okenwa It sounds like I might have to bite the bullet and just pay for an inspection first at least while I'm still new and learning until I get the gist of things. Then I can take the information I receive from the inspector and have that in the back of mind to help determine if a deal works when the GC's come out to give bids on the rehab work. I just didn't want to pay for an inspection on every property if I didn't actually need to since most will be rehab and flip or BRRRR properties.
This is one of the connections to my statement on rehab of "what you are willing and able to do". You should go through one house for an inspection that you know has a number of problems. You don't plan on buying it, but you will take your inspector through it WITH YOU. Take notes. They will give you a detailed report. If you have an option as to the extent/level of the written report, go for the most details. This is your education. You won't find any better one. You got field experience, and a textbook along with it. Do this a couple of times with the same inspector. Make sure the property is in bad shape...more knowledge gained.
You're training your eyes.
Although I do understand the mindset in doing this I can't justify the waste of money it would be. I understand it's not technically "wasting money" if it's a learning process but I'd rather learn through first hand experience from a deal I'm trying to do than just give an inspector free money on properties I have no intentions of purchasing. Just my personal opinion and outlook!
- 9yShawn AckermanPro MemberReal Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
@Brian Garrett Send the contract over to the title Co. Send in the EMD of that's in the contract. Best of luck to you.
- Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes9y
No problem. Always glad to help.
- Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes9y
Originally posted by @Shawn Ackerman:
@Brian Garrett Send the contract over to the title Co. Send in the EMD of that's in the contract. Best of luck to you.
You must have based your response strictly off the title without reading the thread, lol.
Nonetheless thank you for the response Shawn.
- 9yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
@Brian Garrett , I think there is some confusion about when to get a professional, licensed Home Inspection and when to have your GC walk the property and give you a scope of work estimate.
I would not recommend paying $300-$800 for a licensed home inspector until after the property is under contract. If you already have a GC, will he walk through the property with you and give you an estimate? Will he charge for that walk-through? Some do, and if they do charge for it, you're far more likely to get an actual quote. For my last project, I had 5 GCs walk through the house, I gave them the scope of work I wanted done - all written out so they all were starting with the same information, and received 2 quotes back.
After you have the home under contract, then you pay for a home inspection. Use a licensed inspector and ask everyone you know for recommendations. Be at the property when the inspector is there so you can follow him around and ask him questions. He inspects houses every single day, he's not going to remember the house next week. Ask questions as you go, and keep asking questions until you understand what he's saying.
Sometimes, something huge can sound like not such a big deal, and something small can seem like a deal breaker.
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