Too good to be true? Remote investing and What to ask about

Buying & Selling Real Estate
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Too good to be true? Remote investing and What to ask about

Account Closed
Developer · Austin, TX · Member since 2016 · 108 posts · 23 votes

Hey guys, I'm fairly new to this. 

I found a deal that looks AWESOME- almost too good to be true listed online as a foreclosure. Even with a hefty repair budget, this looks like a great deal.

Since I can't get up to see it right away to vet it, what specific questions should I ask the realtor?

Should I have a property management company check it out for me?

What kinds of things do I need to make sure I didn't miss?

thanks guys!

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Andrew Johnson
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Quin Weidner Are you sure it's for sale and not advertising a low "opening bid" price? I've noticed more than a few "greater deals" are just auction company listings that have a reserve. That said, it's probably best to talk to a realtor. I wouldn't depend on them for repair estimates but foreclosure stuff is tricky. Homes also go out of foreclosure so it might be a little challenging for a first bite at the apple. Still, it can't hurt to ask.
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  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y
    Quin Weidner Are you sure it's for sale and not advertising a low "opening bid" price? I've noticed more than a few "greater deals" are just auction company listings that have a reserve. That said, it's probably best to talk to a realtor. I wouldn't depend on them for repair estimates but foreclosure stuff is tricky. Homes also go out of foreclosure so it might be a little challenging for a first bite at the apple. Still, it can't hurt to ask.
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  • Account Closed
    OP
    Developer · Austin, TX · Member since 2016 · 108 posts · 23 votes
    9y

    Great point, Andrew, I'm working on that now. 

    thanks.

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  • Franco Li
    Vendor · New York, NY · Member since 2017 · 217 posts · 88 votes
    9y

    I hope you are looking at this property eventually and not making any decisions prior. Your best bet is to ask a property manager since a realtor may not give you enough honest answers - they are trying to drive sale. I still recommend looking at the place in person. Make sure you've looked at and understand the condition of certain critical parts of the home i.e. roof, windows, flooring, etc. Other things like area and expected rental are obvious questions as well, but you can probably conduct a bit of research on that end. Good luck!

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  • Account Closed
    ., VA · Member since 2012 · 60 posts · 19 votes
    9y

    Consider if seems to good to be true, there has already been a dozen investors looking at it.

    Usually not worth the extra risk for an out of town investor, even after you own the home.

    Agree best to call a property manager and see if they will do a walk thru and give you an idea of what it will rent for.  Is the area going up or down?

    Then make sure you hire your own good contractor or home inspector to really look it over.

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  • Account Closed
    OP
    Developer · Austin, TX · Member since 2016 · 108 posts · 23 votes
    9y

    @Franco Li Yes, I will look at it in person before a purchase. But I need a better way of vetting it before I make the trip out there.

    @Account Closed Ray, I really like the area and think it will appreciate, but do not like to speculate on the market. This deal is about positive cash flow no matter what the market does

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  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    @Account Closed , what part of the world is it in? If it's outside your normal area, being a lower prices doesn't make it a good deal.

    SFR in my area start at $275k and go up dramatically from there. Finding a house for sale under $100k in a different area might be a great deal, it also might be horribly overpriced.

    Perhaps you can connect with someone in the area to have them go take a video of it? Another thing to consider is that you can't smell it over the video. The smell of cat urine is difficult to get rid of and could be another reason it's so inexpensive.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
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  • Account Closed
    OP
    Developer · Austin, TX · Member since 2016 · 108 posts · 23 votes
    9y

    @Mindy Jensen Hadn't thought of smell, thanks Mindy

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