For Sale By Owner - Seeking Knowledge/ Recommendations

[Gary Libero]

Hello out there in BP Land!

I'm new to investing. I'm looking to purchase my second property and it's a doozy. I looked at it today. It's a FSBO. I've never done a deal like that before. What pitfalls should I be looking for?

Some further details:

- I'm going to view this property again tomorrow with my RE agent, just to get her advice (she is also a good friend and doesn't mind helping me out here). The property is good shape with updated plumbing, huge open kitchen space with two stoves, DW, fridge and completely separate ice maker (next to the second stove). Great light from bay windows. The only downfall is that it's right next to a school bus company (I'm not even sure that's a downfall, but it was a little odd staring out at a fleet of yellow buses out the kitchen window).

- The property has a main house with a one car garage and then a lower 2 car garage around the bend of the house, which also has a completely separate space that is currently being rented out as a small office to the school bus company next door. The office is being moved and that space will be part of the house. I will live in this house at first and then use it as a rental, which I'm foreseeing having THREE income streams (house rental, garage space for cars or bikes and the office space). If that's even possible to do, I don't know.

- The sellers have their own attorney they'll be using this for deal. All I would have to do is secure a mortgage, get inspections done and I think that might be it. Trying to CMA on all bases, so what am I missing?

I did find some older posts asking about similar situations, but they were older posts (some had decent info). Looking for some 2022 knowledge and any first hand experience buying a FSBO.

Be well out there!

G

[Sergey A. Petrov]

@Steve Vaughan is right on the money. Most people overprice their properties. That aside, whenever someone involves their attorney I engage mine, so depending on how comfortable you are with real estate in your area, get your own attorney to look at the docs before signing on the dotted line. There is more to the deal than just getting the docs drafted up but that is a beast of its own. Seller disclosures to you? Your due diligence? Inspections? Boundary line issues? Are you inheriting tenants? So long as you are comfortable, go for it!