My first deal! No realtor. What do I do now?

Question

Hi BP! My wife and I are looking at what may be a great deal but are scared to death! I live in the seacoast area of New Hampshire and have the opportunity to buy a family members house, in the same town I live in, for just what they have in it. I'm excited about renting it out and starting my BRRRR strategy to success. I was hoping to not use a realtor but am floundering on where to even get started. I don't know how much the property is worth so I can't work the numbers to see if it's a good deal. I've scheduled an appraiser to come out next week, but they are $500! I'm wondering if this is the best first step or is there another way to get a value of the property?

Other things that I don't know... How am I going yo get the money to even buy the place. I don't even have a down payment!

I definitely know why it's taken me so long to commit to real estate! This not knowing (especially when there's money on the line) is scary!!!

Should I bite the bullet and look at a realtor? Maybe a partner?

What do you think?

Other things that I don't know... How am I going yo get the money to even buy the place. I don't even have a down payment!

I definitely know why it's taken me so long to commit to real estate! This not knowing (especially when there's money on the line) is scary!!!

Should I bite the bullet and look at a realtor? Maybe a partner?

What do you think?

John Warren · Answer

@Boyd Evans I would definitely contact an attorney or title company (is your state title close or attorney close?). They can take care of the mechanics of the closing for the normal costs in your area.

As for comps, just use realtor.com or zillow. Stay as close to the subject as you can (within 1/2 to 1 mile) and try to find properties that are similar as possible.

Boyd Evans · Answer

Thanks @Will Stewart. Also, many thanks to @Richard Dale-Mesaros for the great phone call and advice.

Appraisal on the property is today, then it's time to crunch the numbers!

Will Stewart · Answer

@Boyd Evans yes USDA is an owner occupied loan, you have to intend to stay in the property for a year.

Boyd Evans · Answer

Im going to research USDA loans. This property is in the country. Do you have to live in the property to qualify for a USDA loan?

Jonathan Carter · Answer

Remember to also take into account the sale date when looking at comps. I know I've seen some sold prices on Zillow from 2015 that are way different than more current sale prices. It throws me off sometimes when I forget to click on the property and look at the sale date. Is there a way to filter out old sales on any of the MLS sites?

Will Stewart · Answer

@Boyd Evans I second the USDA loan. If it's in Durham i believe it will qualify. Happy to help with comps.

Boyd Evans · Answer

Thank you Neil, Brian, Richard, and Jake! This all great advice which I will follow up on. I am blown away that anyone would respond to my post at all!

Jake Perry · Answer

There are a lot of towns in NH that qualify for USDA 0% down mortgages so that is one thing to consider

Richard Dale-Mesaros · Answer

Happy to help you any way I can Boyd, comps or otherwise....... R. :)

Brian Pulaski · Answer

@Boyd Evans now is the time to research the property. You need to get comfortable on the After Repair Value, as well as what the property could/should rent for, assuming by your post you plan to rent it.

Has the owner given you an idea of what they have in it? Do they rent it now, live in it, or is it vacant? Not to downplay a realtor, but in this transaction I would be getting in touch with a good real estate attorney, who has good and trustworthy title companies and keep the realtor out of it. I imagine there is a NH real estate contract that would be filled out and completed by both parties? If so I would think treating it like any other real estate sale, complete a correct contract, after you have determined the ARV, rent rates, and if your offer works for you and the other party.

In regards to funding, there are most likely options (sorry I know very little on this subject) and this would also be a first step, once you determine that the property will actually work.

My first deal! No realtor. What do I do now?

My first deal! No realtor. What do I do now?

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