All Forum Posts by: Nicholas Smith

It all depends on what's in the original contract.  That is what is being assigned to you.  So if the original contract does not mention an inspection period, you'll have to accept it as written unless an amendment is signed. 

@Mari E Desilva

If the utilities are on, I’d do a full inspection. Better to pay now then to possibly have to pay later..

This is where establishing a good relationship with a realtor could be beneficial.  Have them send you some apples to apples comparables.  If you're looking to flip, realtors might be eager to assist with hopes of getting the listing on the back end.  

I have 2 real estate licenses and am an investor as well. Here's my 2 cents.. Having your license can be beneficial. You can get access to listed properties without having to go through another realtor. You can of course list your own properties. And the MLS is still, in my opinion, the most accurate way to run comps. However, getting your license has to make sense for you. You will NOT learn how to be a better investor by getting your license. Heck, the majority of realtors have never even invested in real estate ironically. And especially if you're investing out of state, then it really is no need. But if you guys plan on doing a lot of flips or buying rentals off the MLS, then it might be beneficial for one of you to get a license. There's a couple in my area that does a ton of flips. The husband pretty much finds the deals and manages the construction and his wife puts them on the MLS to get sold. It works pretty well for them. But that doesn't mean it's necessary for you. Most investors do not have a license, but they do establish great relationships with realtors. Hope this helps!

@Nick Gann LOL.  No playgrounds for me on this one.  Now when I get the opportunity to develop an entire subdivision, then it's on!!!

One thing I do when I see a listing with no interior pics is see which financing they were accepting. If I see only "Cash" or "Conventional," that might indicate that the property needed some work. But if they listed FHA or VA, then more than likely the property was in at least decent shape. And yes, from my experience, appraisers generally only go back 1 year for comps. I have seen them go back longer, but those are extremes. If you can find comps 6 to 9 months, even better. Hope this helps..

@Greg Dickerson @Jaret Walker  Point well taken gentlemen!!  I do already own the lot outright so that will count as equity for financing.  Just thought sharing some risk might not be a bad idea.  But I can get it done!!

Hello BP - So I recently bought a golf course lot and am looking for some advice/ suggestions on what do with it.  This is a development where one developer/ builder is constructing and selling 14 paired villas.  And 6 single family lots were sold separately and I bought one of these.  The builder that's working on the paired villas is also building the first single family home.  The owners of the single family lot just contracted him to build their home.  However, I'm trying to see if there is any type of arrangement that might entice him to work with me as the lot owner to build the home and we share profits?  Here are a few options that I've thought of or have been suggested to me:

1) As a realtor, I can sell the lot on the open market.  I could possibly sell it for 10K to 15K more than I paid.  But definitely aren't many comps for this type of lot.  So somewhat of a gamble.

2) Partner with the developer that's already building.  Sell him the lot on land contract.  Split the proceeds once closed.

3) Work with a GC and build the house myself and get it pre-sold or sell it after it's been built.

Curious to see if anybody has any other thoughts?  Thanks in advance!
Nick 

Hi Djordje!!  Welcome to Bigger Pockets!  I'm a realtor and investor in the area.  Hopefully, we can connect one day in the near future.  

On a 4 unit, appraisers will also use the Gross Rent Multiplier (GRM) to calculate value. The GRM varies by area, but this should help the appraiser determine value.