Prequalifying a Income Producing Property

As investors after the thrill of seeing a property and you have come back down to earth then it is time to kick the tires. Many an inexperience investor has had buyer’s remorse and wish they had done their due diligence (due diligence another post) before purchasing a property.

We don’t have the space or time to go into prequalifying an income producing property properly here but I will try to give you an overview of the process.

First as always before you start looking for a property you must have a plan which sets limits as to:

·         What you are willing to invest in (Type of Property)?

·         How much you are willing to invest (Cash Available)?

·         How long you plan to keep the property (Time Horizon)?

·         Can you finance it or get it finance?

·         Who will finance it? (Bank or Hard Money)

·         What are the numbers that will fit my objectives (What’s my expected return on my investment)?

·         Are you willing to improve a property and if so what is my investment limit?

Once you have answered these questions then stick to them.

Since your plan is to purchase an income producing property then it is important to get actual numbers the same as if you were going to finance the property. Why do I say this? Because the lender is going to want to see actual numbers that can be verified by records that the sellers has.

If the seller can’t produce the needed documents then I have always found it is better to walk away with my wallet intact than be sorry with buyer’s remorse.

In later post I will go through the number process of prequalifying a income producing property since each type of property is qualified differently.

Remember! Success is achieved by those try and keep trying and where there is nothing to lose by trying by all means keep trying.

Curtis William Lee, Sr.
Mentor
Circle of Winners Master Mind Group

For more information go to www.cwlsr.com 

Or email me at cwlsr@[email protected]