Potential first property

[Jimmy Hodges]

I received information on a house that has been vacant for over a year and the home owner is thinking about selling. I haven’t seen the inside of the house but according to my source the owner said it was pretty trashed inside. He was planning on remodeling it and started the demo but didn’t get to the rehab part. I am very new to all of this and really just started trying to learn in early December so I don’t even know what I don’t know. I have a few questions that maybe you guys here on BP can help me out with.

1. Can I bring in a home inspector to look at the house before I put it under contract to help with the rehab estimation? He is a friend so he said I could walk the house with him to learn what to look for. And yes I understand that the home owner would have to agree. I just want to make sure I’m not violating some law or something.

2. Is there a good list of questions out there I can ask the home owner to find out more about the property the first time I contact him? He is expecting a call from me and I want to sound as professional as possible.

3. Since I am so new to this I am willing to partner with someone here in AZ if they are willing to teach me and my business partner along the way.

Thanks BP,

Jim

[Frank Wong]

Hi Jim,

Number 1 thing.  If the house is trashed financing through a traditional lender will not happen.  You will need to pay cash or find a hard money lender that will finance the deal. 

Yes, bring someone along so you can get a rehab estimate and make a list of what you need to do.  This list must be accurate.  You have one shot to get the estimate right so you can negotiate the proper price for the house.

I would ask the owner what the condition is of the house and ask him why he is selling it.  He will probably tell you a story. Listen listen listen and let him know you can help. Book an appointment asap and see the house and meet the owner.  You don't want to drag the phone call out.  I prefer face to face.  The seller has a problem your job is to find out what the problem is and solve it.