All Forum Posts by: Andrew B.

Thank you @Blake Maloney that's great info.  Another question I have relating to cash offers is how does the due diligence process change if you the deal you're buying came from a wholesaler?

I personally lean toward OOS.  @David Greene's book Long Distance Real Estate Investing is a great resource for developing a team of the right people to systematize your portfolio growth.  Thorough due diligence combined with putting checks and balances in place among your team will help to mitigate the risk.  It all depends on what you're comfortable with.

OOS allows you access to the best markets nationwide and value add brings with it immediate equity and faster wealth building.  There is more risk which means a better system needs to be put in place as there is less margin for error.  There are a lot of different real estate investment strategies and if done well they all work.  Be open-minded to all of them and choose the one that suits your situation.

Hey Joel welcome to BiggerPockets!  On the BP YouTube page Rookie Podcast 24 is about a Military Long Distance Investor so that may be of value to you.  There is also a lot of good information relating to @David Greene and Long Distance investing on YouTube.  That information combined with the forums should be a good starting point for you.  Good luck!

Hi BP.  I'm buying my first investment property in 2-3 months with cash.  I've heard about 5-day closings with cash and the lack of contingencies being appealing to sellers allowing for better deals. How do you close quickly, due the proper due diligence, and avoid making a buying mistake in these situations?  Any input is appreciated.  I have four questions relating to that:

1) Outside of the home inspection contingency are there any other contingencies which protect you as the cash buyer prior to the deal being made official?

2) What is the process for ensuring you have a clean title?

3) Is it normal to order an appraisal in these cases or do you typically rely on your realtor/team to evaluate property value based on comps?

4) Finally, if you've committed to an earnest money deposit are you able to recover that deposit in the event the inspection reveals a major issue?

19% below market value definitely sound like a good deal @Paul Witte.  With no major unforeseen repairs being needed and the potential for cash flow you could be in good shape all the way around.

@Arjun Rao and @Larry G. Freeney welcome to BiggerPockets!  Houston is a great market.  Good luck to both of you!

This is awesome stuff guys thanks!!

Thank you @Matthew Irish-Jones and @Ryan Howell for the feed back so far.  I like the idea of transparency where this is concerned.  As an investor there is little incentive to pay market value for a property as the goal is immediate equity and cash flow.

However, an investor does provide real benefit to the off-market seller (especially one experiencing personal or property distress) in terms of an all cash offer, closing without contingencies, taking care of the rehab, eliminating the need to list the property, etc.

A seller who is in financial distress may not have the time or desire to list the property and wait for offers as their timeline for losing the home may be short.  In addition, if the property is in distress and the homeowner isn't willing or able to rehab it they should expect the person who is willing will want to be compensated for their time.

I could still see a rare scenario where the seller could come back after the fact regretting the decision and try to misrepresent what conversations actually took place.  Even though you were transparent and laid out all of their options for them I think you would have to find some way to get an independent 3rd party involved in the dialogue in order to more fully protect yourself against this.

Hey BP.  I heard on a BiggerPockets podcast (can't remember which one) that as a Real Estate Agent who is also a Real Estate Investor there is the potential for conflicts of interest with sellers when looking at investment property.

Essentially, the speaker gave a scenario of an agent/investor making an offer on a property which the seller accepts.  The seller later claims the sale was unethical because the agent led them to believe the below market price of the sale was what the home was actually worth.

As an investor you're obviously looking to negotiate a price on investment properties which is below market value after analyzing what rehab is needed in the case of a value-add play.  My question is how can you ensure all potential conflicts of interest are avoided while doing this?

I am in the process of becoming a licensed agent and looking for my first deal.

From what I can tell people are still buying deals they're just making sure the numbers are solid and are avoiding thin deals.  @Erickson Sainval is right.