Going to be looking at my first property tomorrow, any advice??

Question

Hi,

Tomorrow is a big day for me! I’m going to be looking at my first property! I’ve been attending open houses to try building relationships with realtors and getting use to the idea of looking at houses.

Any other advice that can help me or encouraging words? Not to mention, I look like I’m 16 so it always scares me that folks won’t take me serious. Also, I’ve noticed that some realtors don’t want to meet with me because I don’t have my proof of fund letters but how can I obtain that if I don’t know what kind of deal I’m looking at? Would a letter from a lender saying they will lend me the money I need be enough?

Thanks!

Kathy Henley · Answer

Credibility goes far @Evelize Ramos. A proof of funds letters shows that you are ready to buy a property, not just there to take in the floor plan. Get qualified for a loan and the lender will issue a letter saying that you are eligible for a loan up to a certain dollar amount. When walking a property, look for warning signs of what needs refreshing (knob & tube wiring still in the place?), age of furnaces and roof, and estimate the cost of putting it back together to get top rents. I always head to the basement with my flashlight. Water heaters, dampness, foundation issues, control panels, the pricey stuff will show itself.

Jonathan Greene · Answer

You definitely need to get a pre-approval in place as it lends credibility to the process. I am surprised an agent is taking you out without one. A pre-approval lets you know your top loan amount and then you can judge how far under that you want to be. You also have to account for closing costs, inspections, attorneys, etc.

When inside the home, since you are so new you won't know what knob and tube is or a lot of other things, so ask A LOT of questions to see how much the agent knows. This will help you see if they are the right agent for you in the future. But go get that pre-approval ASAP.

Account Closed · Answer

If it is your first property a pre approval would be a good idea. Although, I am going to go against what most people have said. When you build a relationship with a realtor and have closed a few deals pre approvals aren't as necessary imo. You've proved you can close deals. I don't need to give my agent a pre approval because she know I am serious and can close any deal I ask her to look at. Credibility and a proven track record of closing deals goes a long way.

Evelize Ramos · Answer

@Jaron Walling This is awesome advice and I will definitely use! Thank you!

Theresa Harris · Answer

To add to Kathy's list turn on faucets, look in the cupboards-especially under the sink to check for leaks, check out the windows, tub surrounds.  If it is a condo or has an HOA, find out if there are restrictions on rentals or animals.

Evelize Ramos · Answer

@Jonathan Greene This is very helpful! Thanks.

Pat Butler · Answer

@Evelize Ramos if you haven’t spoke to a lender, start there to see what you will qualify for. This way when you meet a realtor you can state you are pre approved.

Evelize Ramos · Answer

@Dylan Mejo Thank you I appreciate it.

Jaron Walling · Answer

@Evelize Ramos Congrats on checking out your first property!! That's an exciting time and I remember looking at my first house. It was a piece of s**t. I would 100% speak with some lenders to get a pre-approval letter. It goes a long way with agents and anyone helping you find a property.

Inspecting a property takes a lot of practice so don't be discouraged if you miss something. BIG tickets items are really important though; foundation cracks, structural issues, bowed walls, or uneven flooring. If you find stuff like that run away because you're asking for trouble. For your first property avoid trouble at all cost. I created a spreadsheet to document issues I find touring property. Then I can rough calculate rehab costs. It's helpful because you can never remember the number of windows, light fixtures, exterior doors, etc that need replaced. Don't be in a rush and good luck on the hunt.

Gian Cunanan · Answer

+1 on the pre-approval! It helps you find direction on your search. You do not want to be looking at properties only to find out later that you can't get a mortgage for it. Speak to a mortgage broker about this.

Then, get at least a couple of realtors with experience with investors to find you prospective properties. Tell them what you are looking for and what your intention is. When I did this, I was surprised to find cashflowing properties in areas that I never thought would have any.

Ask as many questions as possible like how long the property has been in the market, have they brought their asking price down, etc.

Make good use of the calculators available on BP to know your numbers.

Good luck!!!

Going to be looking at my first property tomorrow, any advice??

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