All Forum Posts by: Adrienne Bryson

What a bummer Property Radar isn't in North Carolina!

I'm new to REI and another topic brought this to mind...

When my husband and I bought our house (that we live in, not an investment), we paid an earnest money deposit that was credited to us at closing.  We also paid a due diligence fee directly to the seller that was just his, separate from any other transaction.

Do investors pay due diligence fees?  I have it in my contract, but I never hear anyone else talk about it.  I thought it was standard in any purchase.

I can't offer personal expertise on a specific contract, but when I have purchase/contract specific questions I've found the best resources are my real estate agent and attorney.  They can tell you what's most common, what works in your favor, and just generally walk you through the whole process.

As far as what happens once you sign...  Usually you put an earnest money deposit down immediately (some investors do it differently) and give the seller a due diligence fee to let the seller know you're serious about buying.  Then you have an inspection period.  GET AN INSPECTION.  It's optional but you definitely want to do it!  If everything checks out, or what the inspector finds is stuff you can reasonably deal with, then you'll go to closing.  If you're getting a loan for the purchase your lender will also want an appraisal before committing.  As far as I know most banks will cover it but some might not and if you're not getting a traditional mortgage you'll have to just ask your lender.

Yes I think it will definitely help.  He gives a price range for the most common materials, then offers guidance for how to best get local estimates.  Well worth reading.

Congrats!  Keep up the good work!

Keysmart!  I have one that holds 8 keys but I think you can get it for as many keys as you need.

Have you searched for discount appliance stores?  You can often get discontinued, dented or otherwise damaged (minor cosmetic stuff), and refurbished appliances for very reasonable prices.  I know you are wary of secondhand appliances, but most of these places (at least in my experience) offer warranties.

Make your offer contingent on your inspection and on you obtaining financing, and give yourself a fairly generous inspection period (15 days is recommended by most).

That way if you or your potential buyers go over the house and decide it's not a good deal, you can back out saying it didn't pass your inspection... And if you can't find a buyer you can back out saying you couldn't get financing.  Just make sure to cancel the contract within the inspection period.

The best thing you can do is contact a local real estate attorney and tell them what you want out of your contract, and let them come up with the structure and verbiage.

I am a new wholesaler and the Book on Estimating Rehab Costs was soooooo insightful. Very helpful. I especially like how he breaks down not only the various types of materials and their cost, but also when and where certain materials are most common or best value.

 I'm looking forward to reading the book on flipping

If you haven't already, get the book on estimating rehab costs by J Scott. As a newbie wholesaler myself I can say it is a great resource.