starting out

2 Replies

Hello, everybody,

I am looking forward to purchasing my first investment property, but got some questions. We located this one off MLS, it's priced below market value with just some cosmetic work. We really think it's a good buy, at this point should we get an buyer's agent to work for us, get all the paperwork done which we don't have, also give us some protections? or can we do this ourselves without a agent? how? where to get the paperwork? Thx a lot for your kind help!!

Nicole

luckynicole,

Great questions. My opinion is that you should get yourself a good competent realtor who will help coach you through this and that you can take care of paying by giving them the commission on the deals. I would visit your local REI club and try to find someone who is humble enough to serve you and teach you and that you can help as well. You need someone on your side to help you write everything up in a way that benefits you, especially on your first deal when you know so little. Many successful investors I know and work with have capable realtors that they regularly use to help them because it's that persons job to know how to write it up and how to make the deal work for you.

Let me say again, get a GOOD and COMPETENT investment realtor, not just anyone. Ask them for references of other investors they work with and check them out. Do your homework and you won't regret it.

nicole,

sounds like your motivated and i'm not posting this to rain on your parade, but a few questions:

1. what makes you think this is a good deal?

2. how do you know it is below market value?

3. what is market value for this type of home - # of br/ba/rooms, size of structure/lot, age of property, neighborhood home prices, etc?

4. if it's below market value - how much is it below market - over 25%?

you have to answer these questions, and be solid with these numbers.

that's where your realtor can help - and like chaser said - get a good competent realtor. you need good...again i emphasis GOOD CMA -or Comparative Market Analysis.

it sounds as if you're just starting out - you've got a LONG road ahead of you. if you don't know how to do anything, go to your library and start reading. get out a book or two and just read. you can email me as well.

one other question - and this is probably the most important:

what is your purpose for buying this or any other property? do you plan on living in it? renting it? rehabing and selling it?

start there and let us know.