Five people left me voicemails today from my yellow letter campaign...what now?!?! I'm a total rookie.

Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes

When I call them back, what should I ask them? When I meet them in person, what should we talk about? This is all new to me!

My goal is to finance a fourplex using FHA financing.

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Ryan Dossey

Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes

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Congrats on the campaign and people calling! Ask them everything. Is it owned free and clear? What do they owe? What deferred maintenance needs to be done? What is it rented at? What are the expenses? Why are they selling? What is the condition? Ask for profit and loss statements if they have them. What is their asking price? Are the tenants on leases? What kind? Being a 4plex comps can be ran via MLS. Try to get that done before you go so you know what it's worth. You can ask most of this on the phone. You want them to have equity and be motivated. You find that combo and you found your 4plex. I would look into some other options other then FHA if you are looking for a low DP some banks offer only 5% down mortgages if you search you can see that the FHA vs Conventional has been beat to death!

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Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
Congrats on the campaign and people calling! Ask them everything. Is it owned free and clear? What do they owe? What deferred maintenance needs to be done? What is it rented at? What are the expenses? Why are they selling? What is the condition? Ask for profit and loss statements if they have them. What is their asking price? Are the tenants on leases? What kind? Being a 4plex comps can be ran via MLS. Try to get that done before you go so you know what it's worth. You can ask most of this on the phone. You want them to have equity and be motivated. You find that combo and you found your 4plex. I would look into some other options other then FHA if you are looking for a low DP some banks offer only 5% down mortgages if you search you can see that the FHA vs Conventional has been beat to death!
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Kent Verge
Investor · Bentonville, AR · Member since 2014 · 114 posts · 40 votes
11y
As about their house and why they want to sell. Michael Quarles walked through the questions he asks during a phone call in podcast 77 if I remember correctly.
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Logan AllecBusiness Member
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Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
11y
Thanks, guys! And I will definitely listen to Podcast 77.

This might be a stupid question, but....should I bring my realtor along?
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Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
No you don't need to bring your realtor along unless you are just looking for some advice or a secondary opinion. When you walk through the property take down as many negative things as you can. Look for things that you can use later to negotiate/explain your offer.
Liabilities:Bad railings, Tree over hanging neighbors home, etc.
Visually inspect: Roof, Under sinks, Look at the water heater and hvac for signs of age/wear, look at piping stacks, look for code violations, look at the electrical system, flip light switches, flush toilets, turn sinks on, look at the foundation.
Take tons of pictures.
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Nastassja S.
Real Estate Investor · Pittsburgh, PA · Member since 2014 · 15 posts · 3 votes
11y
The posters above have certainly given you all, if not the most important questions to ask. There is a whole list of questions you can ask on this site http://www.houseflippingonline.com/motivated-selle... (Hopefully I'm not breaking any rules posting it; please notify or remove if I am). The page is geared more to wholesaling, but if it helps drive the price down a little bit more, why not?

Good luck on reaching your goals!
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Nick Versetto
Investor · Frankfort, IL · Member since 2015 · 206 posts · 55 votes
11y
Originally posted by @Ryan Dossey:

Congrats on the campaign and people calling! Ask them everything. Is it owned free and clear? What do they owe? What deferred maintenance needs to be done? What is it rented at? What are the expenses? Why are they selling? What is the condition? Ask for profit and loss statements if they have them. What is their asking price? Are the tenants on leases? What kind? Being a 4plex comps can be ran via MLS. Try to get that done before you go so you know what it's worth. You can ask most of this on the phone. You want them to have equity and be motivated. You find that combo and you found your 4plex. I would look into some other options other then FHA if you are looking for a low DP some banks offer only 5% down mortgages if you search you can see that the FHA vs Conventional has been beat to death!
any info on the 5% down banks?
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Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
https://www.chase.com/mortgage/home-loans/down-pay...
There are all kinds of options and things you may qualify for. Only if you are going to owner Occupy. I would meet with a local mortgage broker and see what your options are.
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