Order of Operations

[Jewel B.]

One thing I'm currently struggling with is the order of operations.

• 1. Browse the market (MLS, Craigslist, Facebook marketplace) for potential properties, keep an eye and ear out for off-market (network)
• 2. Pull aside any properties that seem to have potential / fit buy box (2-4 unit for FHA househack and motivated sellers/distressed properties to HML BRRRR)
• 3. Evaluate the comps for ARV and potential rents
• 4. Schedule showings with realtor
• 5. Have contractors walk the property and bid / estimate rehab costs / quote
• 6. Submit an offer based on the ARV*70%-rehab costs rule of thumb (which accounts for the equity that will be left in the property after refi)
• 7. Speak with HML and see what they need from me
• 8. Offer rejected, accepted, negotiated, or ignored
• 8a. If rejected or ignored with no other buyer, follow up every week / regularly
• 8b. If another offer is accepted, monitor listing until sold to see if it goes back on market
• 8c. If accepted or successfully negotiated, due diligence (with possible negotiations), then close (or back out based on contingencies / unwillingness to negotiate)

Rehab/Contractors: Bid first then offer or offer first (based on some metric, such as % ARV) w/ contingency (such as inspection or approval of business partner) then bid and negotiate?

HML: Should I speaking to the HML at a different point in the process? Before and after offering?

I would love to hear your thoughts!

Thanks