The 5 Step Process of Buying a Real Estate Deal by:Steve Teta
To receive more information and your FREE report entitled How To Buy A Wholesale
Deal Without Taking A Bath go to: http://www.stswholesaledeals.com/The first step in any evaluation process is first to obtain any of the necessary information about the property in order to eliminate any guesswork when analyzing deals. By taking some easy initial steps and establishing the appropriate systems it will eliminate any fears or risks. A lot of the initial work can be performed before even leaving your desk.
Step 1: The In-Office Evaluation
Before even leaving the comforts of your own house or office most of the initial evaluation can be done right at your desk. This first step can save you a lot of wasted time and energy. The first thing you want to do is look up the public record of the property. This information is usually available online and give you valuable information such as the style of the property, square footage, number of bedrooms and baths, what the property value is assessed at, what the property was last sold for and sometimes even a picture of the property.
Step 2: Look up Comparable Properties
There are several websites available to the public that you can use to look up estimated property values but sometimes these may not always be completely accurate and should not be used as a final determining factor. The best way is to establish a relationship with a realtor who can look up comparable properties (comps) and what they have recently sold for. When looking up compass you will be able to determine both the as-is value of a property as well as the after repair value (ARV). You can look up properties that are currently listed, those that have expired and those that have sold. You can also compare the condition of these properties to the one you are evaluating as well as the similarity of neighborhoods.
Step 3: Property Walkthrough
After you have done your in-office evaluation its time to hit the pavement. You will need to evaluate the actual physical condition of the property. This will help you determine the as-is and after repair values. When you first meet the seller have them show you around the property, just let them know you are trying to get a general idea of how much work the property needs, if any. You should primarily be looking for major items that need work and that will quickly eat up a repair budget.
Step 4: Negotiating with the Seller
The first step when purchasing a deal is getting the property under contract at a price well below the market value. In this step successful communication is a necessity. You must be able to handle seller objections or it will break the deal. This will greatly increase your success. You should practice and prepare your responses to different objections you may face. This will help you avoid a costly learning curve if you know how to handle objections prior to be confronted with them.
Step 5: Contract Signing and Closing
Once you negotiate your purchase price with the seller the next thing to do is get it under contract. Its best to use a standard purchase and sale agreement for your state or have your attorney draft one for you. Once you have the property under contract the next step is managing and executing the closing process. In this step it is important to keep a close eye on the details and dont let anything slip through the cracks. Its always a good idea to have a checklist in order to manage the various stages of the closing process. The various parties involved in the closing process include you, seller, attorneys, lenders, title companies, appraisers, and insurance brokers. It is very important that communication with all parties involved in this process be frequent and continuous. This will insure that nothing is left to chance and will allow for a smooth transaction.
About the author
Steve Teta is the owner and Founder of STS Real Estate Solutions, LLC and is an active real estate investor and wholesaler. To receive more information and your FREE report entitled How To Buy A Wholesale Deal Without Taking A Bath go to: http://www.stswholesaledeals.com/ Top 3 Ways to Improve Your Work/Life Balance while Growing Your Business by:Victor Mataraso Ultimate Scaffolding Report by:Daniel Fincham Introduction to International Background Screening of Job Candidates by:Lester S Rosen Lloyds Banking Group Launches New Mortgage Scheme For First-Time Buyers Mortgage Advice by:Mark Aucamp Forex Trading Platforms And Forex by:Phil Jarvie Small Businesses Arent The Stimulus Answer by:Ronn Torossian LBC, The King of Delivery Service by:Timothy Gomez LBC Delivering Withing 24 Hours by:Timothy Gomez Letters In Safe Hands by:Timothy Gomez The Joy Of Opening A Balikbayan Box by:Timothy Gomez An Express Regalo From LBC by:Timothy Gomez AIR21, 2GO, And LBC by:Timothy Gomez Generate Endless Leads And Instant Cash For Your Biz by:Stuart Fripp