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Questions to Ask Before Buying a Fixer-Upper
- Is the Investment Worth It? ...
- Do You Have the Time to Invest? ...
- Do You Have the Money to Invest? ...
- Is the Home in a Great Area?
What are the investigative questions to ask a home seller?
Nov 21, 2019 · When it comes to buying a fixer-upper, it is best to consider it as an investment. First of all, you need to check out the property. Walk through the property with your real estate agent and pay particular attention to any significant red flags. Don’t forget pen and paper - making notes of problems is vital.
What are the most important real estate questions every investor should know?
1) Does your company own the turnkey properties you are selling or are you a marketer? You will find that many “turnkey sellers” are actually just marketers selling actual turnkey providers properties. These marketers typically mark up the price of the property a little but so they can get a piece of the pie.
What questions should I ask when buying a rental property?
Jun 28, 2021 · 3.Previous Selling Prices . Knowing how much the seller paid is helpful for a couple of reasons. First, it tells you if values in the local market …
What should I know before buying a house?
Aug 12, 2019 · Here are 20 common real estate questions asked by new investors. 1. How do I determine the value of an investment property? This real estate FAQ is common among new investors looking to buy an investment property. The value of a real estate property can be determined using a number of methods.
What questions should you ask a seller?
Top 10 Questions to Ask a Home Seller Before BuyingWhy are you moving? ... What are the average expenses? ... How are the local schools? ... How much did you pay for the home? ... Have there been any major repairs? ... Were there any structural changes? ... How long has the home been on the market? ... What's included in the home sale?More items...•Jan 3, 2019
What questions should I ask when buying a property?
15 Questions to Ask When Buying a HouseWhat Questions Should You Ask Before Buying a House? ... What's my housing budget? ... How much should I save for a down payment? ... How much are closing costs? ... Do I need to save for moving expenses? ... How will I furnish and decorate? ... What's the neighborhood like? ... What are the schools like?More items...•Sep 24, 2021
What are the most important questions to ask when buying a house?
12 Critical Questions To Ask When Buying A HouseWhat Is The Risk Of Natural Disaster? ... Are There Health Or Safety Hazards? ... How Old Is The Roof? ... Are The Major Appliances In Good Condition? ... What Is The Cost Of Utilities? ... What's Included In The Sale? ... Have There Been Any Additions Or Renovations?More items...•Feb 23, 2022
What questions do we need to ask the seller to gauge how motivated they are to sell?
Questions to Determine Seller Motivation “What year did you purchase this house and what did you buy it for?” Also, “how much have you invested in improvements etc.?” This can help you understand the profit the seller is hoping to make and how much they have invested.
What should you not say when buying a house?
Ross says there are three things you never need to disclose with your real estate agent:Your income. "Agents only need to know how much you are qualified to borrow. ... How much you have in the bank. "This is for your lender to know, not your real estate agent," he adds.Your personal and professional relationships.Oct 11, 2019
What is a good deep question?
Deep Hypothetical Questions If you could have one human talent that you don't currently have, what would it be? If you had the power to correct one problem in the world, what would you fix? Where would you go if you could teleport anywhere in the world? If you could be an animal for a week, what would you be?Jan 3, 2019
What are closing costs on a house?
Closing costs are the expenses over and above the property's price that buyers and sellers usually incur to complete a real estate transaction. Those costs may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges.
When buying a house what do you pay attention to?
Have you really found your dream home? Here are 10 things home buyers should look for during a home tour.Location and neighbors/neighborhood. ... Square footage and floor plan. ... Roof and gutters. ... Signs of water damage. ... Electrical panels. ... Furnace and AC units. ... Cracks in exposed concrete, uneven flooring, doors that stick.More items...•Jun 11, 2018
Can buyers and sellers talk to each other?
A: Of course you can speak to the buyer. Your agent must obey your orders, not the other way around. The broker may be acting in your best interest, though, by advising you not to contact the buyer directly.Jun 28, 2008
How do you motivate a seller to sell?
8 Ways to Motivate Sellers Without Spending MoreFind out what your seller wants. This one is easier than you might think. ... Offer cash. ... Rent the house back to the seller. ... Waive contingencies. ... Offer to buy the furniture. ... Write a heartfelt letter. ... Play hardball. ... Think outside the box.
How do I motivate my realtor?
Realtor Motivation: 6 tips and ideas for an inspiring real estate agent work environment#1. Keep your feedback specific.#2. Offer public recognition.#3. Make your office fun.#4. Use the right technology.#5. Strike the right balance in your performance tracking.#6. Give your agents the right tools to work with.Jul 15, 2020
What questions should I ask a real estate wholesaler?
Before you sell your house, here is a list of 10 questions you should ask your wholesaler:Do They Have a Buyer's List? ... Do They Have a Lead- Generation Program? ... Do They Know How Wholesaling Works? ... What is Their Attitude? ... Are They Prepared? ... How Long Will They Take to Close the Deal?More items...•Mar 23, 2020
What are the mistakes that first time homebuyers make when buying a fixer upper?
One of the significant mistakes some first-time homebuyers make when purchasing a fixer-upper is not giving any focus to the surroundings. Real Estate agents can be found screaming from the rooftops all the time how important location is not only for salability but resale value.
Is buying a fixer upper a bad idea?
Are you thinking about buying a fixer-upper? There are quite a few considerations to think about before purchasing a house that needs a ton of work. Buying a fixer-upper is not a bad idea. However, but as with any other real estate investments, it is essential that you ask yourself a few questions. The reference at Maximum Real Estate Exposure does an exceptional job of explaining all of the ins and outs of buying a house in rough shape.
How long does it take to sell real estate?
Real estate is an inherently illiquid investment – it costs several months and thousands of dollars to sell, unlike stocks or bonds or REITs. It could take six months and $15,000 to sell a rental property; a far cry from selling stocks instantly, at the cost of $4.95 commission to a broker. That means that making a mistake when buying ...
What is turnover in real estate?
Turnovers are where most of the work and expenses lie for landlords. To earn more and work less, you want to minimize your rental property turnovers. Unlike many of the questions above, this one can’t be answered with an app or a handy real estate investing tool.
When you're in business, do you need a competitive advantage?
And make no mistake: as a real estate investor, even a solo investor buying your first rental property, you’re in business.
Is speed a competitive advantage?
Speed can be a competitive advantage. Perhaps you’re able to find good deals on rental properties – deals that other investors are missing. One way to do this is by finding properties that aren’t listed for sale and approaching the owner directly about selling.
Is buying a rental property good?
Buying a rental property can deliver excellent returns, especially in the form of passive income. But every property is different, every market is different, and you need to be able to quickly compare returns not just between different rental properties but against other types of investments.
What is the best turnkey property?
The best turnkey properties typically fall in either the B or C class properties. A’s are usually too expensive and there is no cash flow. D’s are high crime areas which you don’t want.
What is a turnkey seller?
You will find that many “turnkey sellers” are actually just marketers selling actual turnkey providers properties. These marketers typically mark up the price of the property a little but so they can get a piece of the pie.
Is it a good sign to invest in turnkey properties?
It would be a good sign if the turnkey provider invests in their own properties and has their own portfolio of rental investments in the same locale they are selling. If not, this could be a red flag.
What does multiple cities and markets mean?
Multiple cities and markets could mean the turnkey seller does not own the properties themselves and are a marketer. What I’ve found is the best turnkey sellers only offer properties where they live.
Does turnkey give a warranty?
Most turnkey provider s will give you a first year’s home warranty which will replace any of the newly replaced items free of charge if they go out on you. Nice to have!
Do turnkey providers supply appliances?
Some turnkey providers do not supply this and you are caught off guard toward the end of the process and will have to cough up more money for these two items. This does however vary by locale so be sure to do research to find out of this is common to not include these appliances.
Can you find a perfect tenant?
It’s almost impossible to find a perfect tenant but there are many steps that can be taken to securing a good tenant (s). You should expect a credit check, background check, eviction report, pay verification and previous history of rent payments from the screening process.
Why do people move?
There are many reasons why people move, including job relocation , desire to get into a smaller/larger house, life events (marriage, the birth of a child, death of a spouse, or other reason), and retirement.
What is considered a fixture in a home sale?
Anything that is permanently attached to the home (for example, faucets, cabinets, and window blinds) is considered a fixture and is generally included in a home sale. Sometimes, legal definitions determine what is—and what is not—included in the sale, but sometimes an item can fall into a gray area.
How to know how much a seller paid?
First, it tells you if values in the local market have gone up or down since the seller purchased the home. Second, it may help you determine how open the sellers may be to negotiation, and here’s why: If the sellers bought the home at rock bottom, they may be more willing to move down on price since they will still make a reasonable profit. If your sellers purchased the home for close to or more than the asking price, however, they probably won’t be willing to move much—if at all—on price.
Who is Jean Folger?
Jean Folger has 15+ years of experience as a financial writer covering real estate, investing, active trading, the economy, and retirement planning. She is the co-founder of PowerZone Trading, a company that has provided programming, consulting, and strategy development services to active traders and investors since 2004.
Is a light fixture a part of a house?
In many real estate markets, a light fixture is considered a part of the house, and if the seller is taking it—because it's an expensive chandelier, for example—he must replace it with at least a basic fixture. 5. Area Nuisances or Problem Neighbors.
Why do you ask why a seller is moving?
While you may not always get a truthful answer, asking why the seller is moving can be helpful in determining how much room there is for negotiating. Depending on the reason for moving, the seller may be willing to accept a lower offer if it means they can be out of the home faster.
What are the nuisances in my neighborhood?
Neighborhoods can be affected by any number of nuisances including speeding on community streets, traffic congestion, noise (from traffic, neighbors, barking dogs, and/or nearby businesses), crime, bothersome odors (including cigarette smoke ), litter, poor maintenance, bright lights, and problem neighbors who cause disturbances. While you may not get a particularly detailed answer, it’s a good idea to at least try to find out about any problems before going through with a purchase. In addition to asking the seller about nuisances, you can visit the local police department to research crime statistics for the neighborhood.
Why do new investors fail in real estate?
Many new investors fail because they jump into the business without good preparation and knowledge. However, those who become successful often have the habit of asking real estate questions.
How can I be successful in real estate investing?
To be successful in real estate investing, you need to know how to find investment properties that are profitable. To do so, you need to thoroughly evaluate the city, neighborhood, and investment property. However, this process is a bit complex and time-consuming.
How to make money from investment property?
Owning an income property is all about making as much profit as possible. Even though market conditions will have a significant influence on property value, there are some factors you can control to increase the profitability of your investment. Here are some simple ways to increase the profits of your investment property: 1 Set competitive pricing 2 Screen tenants to minimize unpaid rent and property damage 3 Provide additional services at a fee 4 Stay on top of maintenance to ensure the property stays in tip-top shape and to avoid expensive repairs 5 Upgrade your property through renovations
What utilities are the responsibility of the tenant?
Utility bills such as electricity, gas, water, and telephone are typically the responsibility of the tenants unless all bills are included in the rents. It is important for the landlord to mention this in the tenancy agreement to avoid any future misunderstandings.
How to determine the value of a property?
However, the most common method for determining how much a property is worth is by conducting comparative market analysis. This is an in-depth examination of recently sold similar properties in the same area.
What happens if a tenant refuses to pay rent?
If the tenant refuses to pay, you can issue them a notice to leave the rental property. Any outstanding rent can be sought through the court. As a precaution, you can take out rent guarantee insurance to insure yourself against rent nonpayment. The insurance company will pay the rent for up to a specific number of months in the event that the tenant is unable to pay rent for any reason. Upon application, you will receive a policy document that sets out the terms and conditions that you must abide by.
Is it good to rent out a house?
It is always good to rent out your property when it is in good condition. Rental properties that are clean, have good painting, and modern accessories will rent quicker and at a better price. However, you shouldn’t spend too much money on upgrading the property.
How much water does a well need?
The typical household requires 100–120 gallons of water per person per day.
How far apart should a well and septic be?
If you have at least an acre of property, it’s more likely that the septic and well will be at least 100 feet apart to prevent contamination.
What are the tests for water quality?
15. What’s in this water? A local professional can help you test for water quality issues and interpret those results for you. Make sure your water quality test covers the following: 1 Water safety and purity 2 Presence of minerals 3 PH, hardness, alkalinity, turbidity 4 Coliform bacteria 5 Volatile organic compounds (VOCs) 6 Radon
What is a VOC in water?
Volatile organic compounds (VOCs) Radon. Some minerals and impurities are easy to live with, like iron in the water. Other issues like hardness and bacteria can be treated effectively. But keep in mind that treating radon in your water can run you into the thousands. 16.
Is a wellcap on level ground or uphill?
11. Is the wellcap on level ground or (even better) uphill? Both natural and artificial contaminants will flow downhill and pool in low-lying areas. Make sure there are no holes around your wellhead and that it sits well above any spots where runoff is likely to happen.
Who is Brandon Turner?
Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments. Experience. Brandon began buying rental properties and flipping houses at the age of 21.
What is a conventional loan?
Conventional loans are same run-of-the-mill loans you get at pretty much any bank or credit union. Typically, you will put down 20 percent, depending on the bank, and usually—but not always—offer a fixed rate, which means the interest rate will never change. That interest rate is typically pretty low.
Is a 203k loan part of the FHA?
The 203 (k) loan is one of my favorite products on the market. It's actually part of the FHA loan program —but with an interesting twist. You can incorporate the repairs into the loan. In other words, if your proposed duplex was $100,000 but needed $30,000 worth of work, you can get an FHA loan that requires just 3.5 percent of the total cost ($130,000) and finance the repairs into the loan.
What is direct mail?
Direct mail is the process of sending out hundreds or even thousands of letters to specific property owners with the assumption that a small number will contact you about the letter —and an even smaller percentage will be a good enough deal to buy. Many wholesalers and other real estate investors find the bulk of their deals this way.
Is There Any Lead-Based Paint?
- Whether you’re buying a property to flip or to rent, the presence of lead-based paint will make things many times more difficult. Many states now mandate taking some kind of protective measures to deal with the lead-based paint. These measures, which generally require the servic…
Does The House Contain Any Asbestos?
- Pretty much the same thing goes for asbestos – except it’s a problem that is way more expensive to rectify. In older homes, you can find asbestos in insulation and siding and even in some flooring. In a few cases it can be encapsulated, but most often will have to be removed and disposed of properly by a certified abatement crew. And this is, of course, another costly proced…
Are The Window Frames sound?
- Windows and window frames may not seem like a major concern, but they can be. And that’s why this is one of the questions every buyer should ask the seller before buying a rehab in Baltimore. If the window sills and frames are rotted from improperly functioning guttering, they will have to be replaced. And often, you can’t tell whether the rot is present until you begin to tear into it. Once y…
What Kind of Shape Is The Wiring in?
- In older houses especially, the wiring can be a grave concern. It may not even meet the code requirements for Baltimore. For example, there won’t be any of the now-required ground-fault outlets or even junction boxes where needed. What this all means is that if the wiring is outdated, you’re looking at a major investment to re-wire the house.
How Old (and in What Shape) Is The Plumbing?
- Old plumbing – now there’s another huge issue. A lot of older houses still have very outdated plumbing like cast iron drain fittings and galvanized water lines. And some of them even still have the old Orangeburg sewer lines – which will definitely have to be replaced. And if you’re aware of what plumbers charge per hour these days, you also know that replacing and updating old plum…