All Forum Posts by: Gabe Waldrep

Hi Elliott. I'm in the HEB area with a lot of experience in the Grand Prairie area when I worked for Memphis Invest. If I can be of any help, please don't hesitate to ask.

If electrical wiring and plumbing are damaged, worst-case scenario you are looking at all copper wiring and copper water lines being stolen. So you would need a full rewire and repipe. On the plumbing, did it say if the test held or failed? When it says "Compressor 35 psi for 10+ mins" that sounds like they did an air pressure test on the water lines and usually means the lines are present to perform the test. No guarantees though. For the Electrical, it sounds like they tried to hook up a generator to test the house but were unable, possibly due to missing/damaged wiring or outlets. 

This is all a guess based on houses I have seen though. If the house has been vandalized and copper stolen, you are also looking at an extensive amount of sheetrock damage, usually doors, possibly broken windows, damaged plumbing fixtures, and damaged HVAC systems. All worst-case possibilities which is what I plan for so that I am not caught off-guard. Hope this helps.

I would definitely recommend having your own agent help and represent you. The listing agent represents the seller and will always act in their best interest. This means they may not always give you the best information or advice, where an agent acting on your behalf is doing everything to benefit you regardless of the effect on the seller. Depending upon the state laws, that buying agent working for you may not cost you anything. Here in Texas and several other states, the seller pays the commission for both sides of the transaction. If this is the case in Nevada, then there is no reason not to get your own agent. 

Regardless of who pays commission, I would always recommend getting your own agent. Spend some time with that agent letting him/her know exactly know what you are wanting. Once you become familiar with the area then you can consider acting on your own if you want, but it's always good to have someone working your side especially if you are buying out of state.

@Gavin Joel arredondo I would definitely bring him with you. He can be a business partner or advisor. Pictures are helpful, but they never tell the whole story.

@Account Closed that would be the most advisable for your first purchase, but I understand wanting to avoid it as well. Maybe even see if your agent will accept a lower fee since you found this property, and he will just be helping you scope it and determine value. Just a thought. I usually lower my fee for investor clients.

You shouldn't have to pay the fees unless your realtor writes the offer and contract. He should be ok with giving you advice. It only takes a few minutes to run comps for a property. Let him know you still want to buy future properties from him, but you have to explore all options. If he won't do it, then I would look for another agent who will. As an agent, I look at investors as repeat business. They may not always buy from me, but since they buy more often than a normal buyer, it's ok to advise on purchases in which I am not involved. They don't all see it that way, but you can pitch it to him that way.

Comps are comparable sales. If it is a wholesaler, he/she should be able to provide you with some recent sales, pending sales, active listings that are comparable to this property. Comparable means built within a similar time period, +/- 10% square footage, same neighborhood or nearby, similar neighborhood. If you have a realtor that you have used in the past, he/she should be able to provide you with some comps. Just ask and let him/her know you are looking at something off market. I do it for clients all the time.  

If you are using FHA, then you need to make sure all systems and appliances function properly, no holes in any walls, the flooring needs to be in decent shape with little to no stains, the structure in good shape, no rotted wood/trim, no peeling paint or unpainted wood, etc. FHA has stricter requirements on condition for their loans. So they may require some repairs. Ask about roof condition and when it was last replaced. Find out age of systems. Check electrical panel. Ask the wholesaler or seller for comps if you don't want to use a realtor. Are you getting a home inspection?

I would agree with Jacob. If the light still turns on and functions, then I would not fix it. But I would have that conversation with the tenant. Maybe let them know that if after a few months of paying rent on time, you will look into repairing or replacing it with something similar. Definitely have a conversation with the tenant, letting them know that it is not a critical item but you will repair it in time. Set a deadline and a goal.

I would have to agree with most of the above advice, especially since you are out of state. Get an agent to help. Having someone local with local connections and knowledge goes a long way. In my experience it is well worth the cost.