All Forum Posts by: Gurjot Grewal

In my due diligence period this is my current list 

-inspector/contractor walk property

-get lease terms 

-Get Schedule E form 

-Check Public records 

-Any Liens ? 

Anything else I should be checking up on or asking for? I am a newbie. 

Thanks BP! 

@Russell Brazil @Bill B. @Chris Seveney @Nathan Gesner

Thank you all for your replies. I signed the counteroffer today, and will have my own inspector and contractor walk it. If the numbers for repairs and purchase make sense I will close on this. 

A couple of additional concerns are; 

-downward slope towards the house ( may be worth getting a structural engineer incase? as the home was built in 1923)

-Slight cracking on the foundation on a part of the house (the pre-inspection noted it is common in older homes and not a big concern)

-the plumbing had signs of corrosion which is why the inspector made the note of leaks at some time. But water drainage was not an issue. 

I won't know until I get my people to walk this. As a beginner, I have to depend on my team pretty heavily when it comes to repairs and inspections. 

@Russell Brazil  @Bill B.

thank you for the reply. There is an active leak in the ceiling and some with piping in the basement. Would that change your opinion? 

They countered by accepting my original offer with inspection. I received the two previous inspections done and one shows a lot more work that needs to be done than the other. My concerns are: 

-Some of the electrical isn't wired properly (double tapped)

-furnaces 50+y old 

-various locations of water supply line show signs of leaks at some point

-galvanized steel pipelines. Recommended replacement of water line to the house 

-water damage found in part of the ceiling with thermal imaging 

-windows lower quality old single panel, recommended budget for replacement in near future 

and quite a few more smaller issues. Is any of this enough for you to not buy the property? I'm thinking I get my contractor to walk the property and quote me repairs. Then if needed re negotiate the asking price and maybe try to turn this into a brrr. Cosmetically it looks nice was originally planning on it as a buy-and hold. If I sign the counter today we are under contract, thinking this over at the moment and unsure. 

   Id be okay with losing the emd if it came to that. But my realtor told me if I was to get my own inspection and back out, i risk also getting sued for failure to perform. @Matt Devincenzo

I have a duplex I offered on. It went under contract twice with both buyers backing out due to inspections. The LA provided both inspection reports, and to my very untrained eye doesn't look like anything major. 

They will not accept my offer with inspection as they dont see a point of doing a 3rd inspection. But the way I make long distance offers is have my inspector and contractor walk it same day and talk over things that need to be done. Then get a quote from my contractor. 

Im thinking if I forward these reports to my contractor and get a very rough quote. Maybe I can negotiate a lower price and waive my inspection. Is this a bad idea? 

@Bob Stevens Admittedly I am being extra cautious for these reasons; 

-first investment property

-I live in Canada 

-First time using this lender, assuming there's a chance that they last minute could bail, and then I have no financing contingency 

I can't afford all cash offers in Columbus and with my lack of experience don't have the risk tolerance for no contingencies yet. 

@Bob Stevens

@Caleb Brown

I am pre-approved with multiple lenders and include the letter of the one I plan on using with all my offers. 

@Bob Stevens  Some listed some off market. My agent brings me off market deals but my market seems very competitive. Its in Columbus Ohio.  

Iv made maybe around 40 offers in my long distance market and only 1 under contract which I had to back out of.    

The contingencies I include are these 4 things;

-10 days inspection period 

-appraisal 

-Financing

-seller must give buyer unrestricted access to property with 24h notice 

I feel that maybe im getting beat out by offers which have little or no contingencies. Should I drop everything and just keep the inspection contingency ? 

Hello BP I have a few newbie questions. 

Most likely this offer won't get accepted, but I think this will be a good tool to learn. Quadplex is listed for 375k on market for about 10 days. I'm going to make one straight offer at 330k and another seller-financed offer at 375k, 6% interest only, 5% down, balloon payment 5 years with no pre-payment penalty.    

-375k x .06 = 22 500 ( is this how I would find my total interest owed? ) Meaning total owed at 5 years is 397,500?

-Would tax and insurance payments be sent to the seller?

-How can I sell this more to the seller. Would they be able to avoid capital gains taxes by going this route? 

-I am using a realtor to make offers, and have not made any seller-financed offers yet. Would this impact how he gets paid?