All Forum Posts by: Blake Yoder

@Chris Mason

Okay so I would need to be preapproved, got it.  How does this look then:

1. Browse MLS

2. Find a potential property (say for example duplex at 350,000)

3. Run property through Rental Property Calculator and print .pdf

4. Take .pdf to the potential lender and get preapproved

Steps 5 - 10 would be the same (except for #9)

Does this look more accurate?

@Ayo Oredugba @Chris Mason  Thanks for the insight guys.  The only thing I would be curious about is that how would I establish financing when I haven't made an offer yet?  Do I just take the potential property to the bank/private investor and see what they would lend me for it?  What if I make a lower offer?

Sorry for all the questions, I just want to make sure I understand this correctly before I make any offers.

FHA loans also require you to live in the property initially, correct? Whereas a conventional loan you can immediately rent it out.

Hey BP,

    I'm very new to the real estate game and I just want to make sure I have the "order of operations" down, as it were.  First let me start off by saying I have read a few books on real estate and attended some webinars from this wonderful site.  So I have relative general knowledge (albeit not a lot) about how loans/notes/interest rates/etc work.  I am mainly interested in landlording.  That is, have a passive monthly cashflow.  Not flipping houses right away.

I don't understand however the order in which do do things.  Here's how I see it, let me know if I'm missing the point here:

1. Scan MLS

2.  Find a potential property

3.  Run the property through the Rental Property Calculator (as I said, passive cashflow)

4.  Call the listing agent and ask a few questions (is there anything wrong with the property, why does the owner want to sell, is the owner retiring soon, so on and so forth...)

5.  Make a verbal offer over the phone to the seller/agent that is contingent on an inspection (why go look at the property if they don't accept your intended offer!)

6.  If they accept, write the terms out with the contingency

7.  Inspect the property

8.  If the property is good to go, continue with purchase

9. Find a creative way to come up with the money (FHA loan/private investor/hard money -> refinance/etc. whatever it may be)

10.  Take money to escrow and "make it happen"

Is this at least semi accurate?  Should the money be sought out prior to making the offer or do I need to make the offer first?  What if I make an offer and then can't come up with the money?

Thanks in advance!