Buying Rental Property - No Realtor, What's Needed?

[Patrick Owens]

Recently, I attended a local REIA meeting and met a fellow investor who stated he is selling one of his three properties to pursue a construction project.

The house looks great and has a tenant in place paying $1500/month until the contract ends in October.

The owner has the property market below market value because he is not involving a realtor to sell it. Sort of splitting the savings with the buyer.

This would be my first rental property purchase.

What services does a realtor typically perform in a transaction that doesn't require selling? In other words, what will I need to do for my due diligence?

1. Title search

2. Home Inspection?

3. ??

[Michael Ablan]

@Patrick Owens -  You don't really need an agent at this point, but make sure you get a real estate specific contract that allows you to exit the deal if due diligence kills the deal.

1.) Get a home inspection done on the house

2.) Verify his income/expense reports.  Request supporting documents to prove the tenants pay and pay on time.

3.) Hire a title company to do a title and lien search (also to handle the closing)

4.) Pay a broker for a BPO on the house if you don't know how to determine it's true value yourself

The title company (or lawyer) will handle the bulk of the back end work.