Ignorant Questions From A Newbie

6 Replies

I apologize if similar posts have been made.  I am new to BP as well as RE investing so I am still learning how to navigate around the website.

Due to my inexperience I have some questions that are quite basic but are enigmas to me.

When looking for a title company for closings, what should I be looking for?

I know that contact terms are negotiable but are there any terms that will normally lead to killing a deal?

How I do estimate repair costs on properties?

How do I determine comps if I am not a realtor?

I appreciate all guidance that any of you can give.  Thanks for your time.

@Jeff James  

Those are actually great questions!  Welcome to BP.  You've come to the right place to find some answers.  Let's see...

  1. 1. What to look for in a title company or closing agent is going to be determined to a great deal by what real estate strategies you plan to employ. What do I mean? Well, if you are only planning to do buy & hold investing, then all you need to do if simply find a closing agent you're comfortable with, because those are no different than buying a primary residence. However, if you're going to be doing wholesale, then you need to find a closer familiar with assignments and double escrows. So, you just need to ensure whomever you choose as your closing agent has experience with the type of closings you will be doing. It's that simple. If you need referrals, get plugged in with your local REIA. Find people who are actively doing what you want to do and ask them who they use.
  1. 2. What terms will kill the deal is dependent on your market and what kind of deal it is. In Dallas right now properties in desirable areas are flying off the MLS. Low offers are often not even countered, because they have multiple offers the first weekend. REO properties are getting hammered by cash buyers, so submitting an offer that is contingent upon financing may get you tossed. A good realtor can help you position your offer to be strong in your market.
  1. 3.  Read J Scott's The Book on Estimating Rehab Costs
  2. http://www.biggerpockets.com/flippingbook
  1. 4. Great article on generating CMA's by Chris Feltus
  2. http://www.biggerpockets.com/renewsblog/2014/03/21/ultimate-guide-determining-house-worth/

If you haven't already, read the Ultimate Beginners Guide to Real Estate Investing.

http://www.biggerpockets.com/real-estate-investing

@Jeff James

Welcome. Time to build the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 80 past ones to catch up on.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

Consider checking out HUD homes for small multi's owner occupied gets first crack.

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good luck

Paul

Jeff,

If you're looking for referrals on title companies, feel free to send me a message and I can share a few with you.

Definitely follow @Hattie Dizmond 's advice on estimating repair costs and purchase the The Book on Flipping Houses and Estimating Rehab Costs. Approx 500 pages total in case your thinking "oh I'll download then print it out."

If you are looking to get comps, check out MetroTex. You can sign up to access comps without being a realtor. Granted, you are going to pay for it too, but if that's an option for you, check it out.

I like having asking for the closing cost to be covered by the seller. This gives me wiggle room.

Thanks to everyone.  I appreciate your advice.

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