All Forum Posts by: Derek Guyer

Great responses from both of you. I completely agree with both Caligirl and juzamjedi. You can literally get a property to appraise for almost any amount, but you can't get one to comp out that way. Comps are essential when you're considering selling a property you own or purchasing one as an investor, but appraisals are essential when you're planning on financing a property in one form or another. The banks look at valid appraisals. Most buyers, again most, look for solid comps to justify paying the price for a property.

Both are important for any deal, but understanding the difference is VITAL!

Welcome to Biggerpockets. We're glad it's already been helpful and can't wait to hear about what you're doing with your investing and how we can all help.

Good luck and again, welcome!

Great questions. The Wall Street Journals magazine, Smart Money, had an issue several months ago giving what cities were growing the fastest, as far as appreciation goes, and what cities were the most undervalued. It was a very interesting read from many different vantage points.

I think the entire real estate market is slowing and that's exciting. It's time to start buying and holding in many different areas of the county.

That is regularly done in many parts of the country. I see them downtown Indy and in the suburbs all of the time. One of the major problems we have with them is the zoning. If they aren't correct and there are multiple kitchens and entrances, then getting financing is a major issue. If it's zoned correctly or can even be grandfathered in, it shouldn't be an issue.

As for the deal itself, it doesn't sound like one. If there is a foundation problem and you're not going to be getting the whole place, I'd be very leary of even spending any more time on it.

Great thoughts. The more time I spend with buyers and sellers, I find their emotions/upbringing/lifestyle/etc. play a bigger part than I ever realized in their decision making. The key I constantly find to success is asking questions repeatedly. Eventually, I stop asking and they start talking. That's when the lights start coming on.

Again, great thoughts!!!

Thanks for sharing those links. It's very interesting to read what other investors are experiencing and learning. Great stuff!

Justin,

Very good points. I stand corrected and gladly. I completely agree.

Derek

There is a really good book on preforeclosures from Peter Conti and David Finkel called "How to Make Big Money in Foreclosures without Cash or Credit" and it explains quite a bit about locating those types of properties. It would be a good place to start if you're planning on finding them yourself.

You will either need to pay someone to do it for you or go do the leg work yourself. I would suggest doing it yourself for all that you will learn from it.

Checking into the market rents can be as easy as calling different property managers in the area to tell them where you're interested in purchasing and the specs of the houses. They should be able to tell you what they'll rent for and how fast they're renting out.

I'll be glad to help.

There are good deals with realtors, FSBO's, in preforeclosures, etc. Learning how to locate them is sometimes the hardest part, but the most fun as well.

When I'm searching, I find them in numerous areas, through numerous venues and with quite a bit of work. Eventually the deals start being brought to you, but it's not for a while that it begins. And, the deals that usually get brought to you are garbage. So, you really have to know how to analyze a deal.