Ready to get started, but still have a few questions.
After nearly three years of reading websites and listening to podcasts about real estate investing, I feel that it is finally time to take action and DO something. With that being said, I still have a few questions that I would really love to have answered before I take the first step.
1. I think it's generally agreed that it'd be in my best interest to find a few buyers before I sign that first contract to buy. I have seen it suggested that I should run an ad saying something along the lines of "Handyman special, must sell" and telling anyone that calls on it that I just sold the place, but I can give them a call if I run across something else that suits their needs. But does anyone see any problems if I just ran an ad or posted a sign simply saying "Wholesaler seeking buyers"? It's more honest, I think it'd be a much easier conversation, and I don't see why a rehabber wouldn't call on it. Any ideas or comments?
2. When any potential seller calls, I'm a bit unsure of exactly how to steer the conversation with them. Obviously I need to know the address, how many bedrooms, baths, if there is a hole in the roof the size of a car, etc. But I'm betting that the more experienced people have a sheet that they go through on that first call, and if anyone could share that with me, or make a few other suggestions, I sure would appreciate it. I would like to be as professional as possible, and avoid calling back and forth and wasting time for seller and buyer alike, and perhaps losing the deal.
3. I am still unsure of exactly how to estimate repair costs. I have read that I can probably offer a contractor $50-100 to give me an estimate, but I have two problems there; first, I honestly (don't laugh) don't have $50, and second, how do I even know what needs to be done? Is that something a contractor can tell me? Stuff like paint or carpet is obvious, but what about stuff an inexperienced person like me is going to miss? Can I just figure $30,000 as a high number if it isn't a shell or falling apart? If anyone can suggest any further reading on this subject, that would be great, because I feel this is the topic that I am more uninformed about.
4. With all of the information online, I cannot find a copy of a contract to sign with the seller. I understand that the law is going to vary state by state (Hello Oregonians!), but considering that I'm concerned that I don't have $50 to offer a contractor for an estimate, you can bet I'm not excited about taking up a lawyer's time so that he can give me a standard form and a bill for it. Any help at all on that?
I probably have a few dozen more questions, but I can tell that you're already thinking that I'm a bit long winded, and looking at your watch, so I'll save those for another time. I AM seriously out of that money stuff, but I am going to my first REIA meeting this upcoming Monday, so I've got that. But if anyone could offer any suggestions to anything, or point me in the direction or further reading, I'd sincerely appreciate it.
- Jeff