Good day everyone! Long story short I am investing out of state and I have money wrapped up in a CD fund for another month. This money is going to go towards my down payment for my first property, I just have to wait for it.
I am in contact with a real estate agent and a PM and am basically ready to go. I have two banks that I can get a good conventional loan through although I have not gotten an official quote yet. My agent sends me MLS listings and I analyze them and become more familiar with the market.
With the background out of the way, what else can I do to feel useful until I have these funds in the following month? I’d hate to just sit and wait it out. What can I do besides research (I do a lot of that) to help prepare me?
Thanks again and love this community!
@Steven Dreyer - do you know the market well where you plan to invest? Have you built relationships with other investors in that area?
Are you planning to buy an SFR property?
I second that, I'd develop relationships in the area so that you'd have 'boots on the ground'. Develop a list of contractors that you'd need in case of repairs.
@Tim Puffer I originally grew up near this market so I’m semi familiar with it and am still researching it as well. I have reached out to a few other investors as well.
I am looking at SFR and small MFR.
@Naftali Tolibas the PM and real estate agent I work with have contacts for contracting and rehabbing. I’ve reached out to a few of them as well!
Thanks for the suggestions guys!
If you will be ready to rock in a month, what the heck- why not start making offers and include a closing date that aligns with your schedule? If nothing else, you'll really be digging in and alayzing those deals.
@Steven Dreyer you can also start to think about your property standards. For example, if you plan to do some of the management when you return you might want an eRentalLock or something so you can remotely grant access contractors. Are you planning to get a fixer-upper, or something fully rent ready? You might want to decide if you will go with carpets or some other type of flooring and start learning about the different styles. Are you familiar with landlord-tenant laws in that state? Ask a few PMs if they have a sample lease you can look over. Familiarize yourself with what is in there and why. You may be surprised at the different levels of completion that they have. Are you going to have an entity? Have you set it up in whatever state it will live, and then registered it in the state you will buy? Do you have the EIN, bank account, and Operating Agreement?
There are many things you can do to get more prepared or just expand your understanding. Best of luck!
@Steven Dreyer keep looking at all those listings I am sending you ;)
Keep analyzing properties to get a better feel for each neighborhood and ask as many questions as you want. You might want to talk to the lenders and see if they can still start the loan process even though the money is tied up. If it is available within the next 40 days you might still be able to start the loan process especially if the CD is held by one of the lenders you want to use.
Just a thought since the money is technically seasoned just in account that isn't quite accessible, yet.
@Bryan O. those are awesome suggestions! It all comes down to I don’t know what I don’t know so I’m looking to you all for ideas! Thanks you for some good ones!
@Jake Thomas thanks again for all the help! I’m going over every one of them with my wife and we are both excited! I am going to contact the lenders to see what we can do once I get the times lined up being 14 hours ahead.
Find a good PM. Find the locations your PM recommends and make sure it's not just where the PM has an available property to sell you. Talk to whomever you may be using to insure your property. Understand your policy. Find a contractor, if you think you might be needing one. Find independent sources other than your PM to get ideas on rents or comps. Look for properties. Get to understand the surrounding areas (those areas immediately surrounding your property). Try to have a good idea on exit strategies, if you should need to sell.
Find someone who invests using the same strategy you are and find out some of the issues they have encountered in the past.
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