All Forum Posts by: Steve McGovern

Roberto Torres I mean that when you purchase a property – specifically a residential one – there are two contingencies that any attorney is going to add to your contract: an inspection contingency, and a mortgage contingency. Assuming that you are getting money to purchase this property from a lender, you want to add a clause that says that if you can’t get that financing for any reason, then you will be released from the terms of the contract. You may need to forfeit the deposit, but you will be otherwise relieved from having to purchase the property. The inspection contingency says that you have the right to conduct an inspection of the property. The key here, wherever possible, is to anticipate the actual inspections that you need. Sometimes it’s simply a home inspection. Other times, you will need a structural inspection, an inspection of zoning records, and inspection of a septic system, or in your case inspection of the plumbing system. If you contract this into the document, then you have the right to do it.Furthermore, if this cause is drafted properly, then it will also give you the right to walk away if you are not satisfied with the conditions of the home or its components It is at this moment but when they say “no you can’t inspect the plumbing“ that you know something is wrong before you have signed The document. Furthermore, these two contingencies also work together – what lender is going to want to lend to you with a known faulty plumbing system, unless you’re getting a construction loan right out of the gate? You can’t get the loan that you intended to Obtain, then you are again released from the terms and conditions of this document. This whole process allows you to negotiate intelligently and to renegotiate your position in the middle of the deal as soon as you know that something has gone wrong with the property. Without the guidance of a proper attorney, there’s no way you will be able to protect yourself from these things that you cannot see. There are a large number of caveats: for example, this Method does not work for full rehabs, it does not work when somebody is self – financing,It doesn’t work in situations where the seller is saying “you buy the property as is and that’s all there is to it”, but for 99% of new tires on residential properties, this is the way to go Of course, you’re not forced to act upon the information you receive, you can always waive your Knowledge or ignore it if and when the inspection shows major termite damage but you are a carpenter or when the inspection shows a septic system issue, but you were going to hook it up to city sewer anyway. So you can do whatever you want with the information, but at least you have a path to acquiring that information and a possible way out if it’s way over your head.

Ask a local, independent agent to go over your quote’s line items with you. You may find that you don’t need (this or that item of coverage) or that you can raise your deductible. Or, you may learn that you bought in an area with high probability for... some risk. Crime, wind, water, seismic activity... whatever it is, there’s usually a reason. Additionally, local agencies have more insurance companies available to them for comparison. You may not always get the cheapest quote from them, but right now, it doesn’t sound like you know the reasons, so the information is more valuable. Take their comparable policy for a year, and then switch out to the National guys once you understand the issues and can actually compare apples to apples. Generally speaking, 900’s a pretty ok quote. We usually estimate 100 a month in taxes and 100 a month in insurance for a typical back of the napkin analysis on a SFR asset, but that’s not necessarily true in your area, and if the house was purchased for $65k.... well, I hear you. Contact a local agent.

Morning. Whether or not a seller “will allow you” to turn on the water for Inspection is moot, IF you have the proper professionals (agent, attorney) drafting your documents. If during the negotiation process you/your professionals learn that the seller “won’t allow you to inspect” then that’s a better time to get the red flag, than when you hear from a neighbor that someone’s using a plastic bag for a rest room. Even if it’s too late for an Agent, as another poster has stated, you can hire an attorney now on a emergency basis and I’d recommend doing so. Sounds like your price point is good, but it’s not always about price point. Lots can— and does— go wrong. Protect yourself whenever possible, and it’s exactly those protections that allow you to go back to the well when something like this pops up. Good luck. Please keep us posted.

Originally posted by @Phil G.:

Front:  I sold my house to a wholesaler

Back:  And all I came out with was this lousy t-shirt

The only slogan one needs, right there.   

And...  equally hilarious, you may get your "Genius" badge with this response.  

Slainte.  

The issue is that of disturbance...  but once you're done making it airborne, then you can put it in a dumpster.   I know,  not much help.  

This, from the EPA itself:   

Residential lead-based paint - In order to reduce lead poisoning and promote efforts to reduce lead in and around homes, EPA has determined that contractors can manage residential lead-based paint as a household waste.

In other words, We'll go easy on you, because we want you to remove it...  but what you NEED to do to remove it will depend largely on your jurisdictions' guidelines.  

https://www.epa.gov/lead/lead-regulations

This is a really easy answer...  but  few people actually think of it, so I don't blame you for asking: 

Attend 3 or 4 different local REIA meetings, for about 3 months. You'll see many of the same agents come around... Without telling them explicitly that you're seeing Agents, chat with them, see what their bandwidth and tolerance levels are. You'll have your answer soon enough.

Furthermore, don't commit to using any ONE any time, if possible.   You'll want to keep relationships with a couple.  E.g., if one is slammed with closings and you just HAVE to have info on the dates listing on the last Thursday of the month, you'll want options.  

This will also expose you to other professionals (attorneys, accountants, appraisers, etc.) who also want your services and who you might need. 

Good luck!

Originally posted by @Jim Goebel:

You can send 24 hour notice that you will be dropping by to show.  

This is your answer.  EXCEPT bring a friend they've never met who will do you a favor and "see" the place with you.   Literally "Show" the friend the place as though it's a real prospect.    Maybe it's a Contractor or Agent so you can begin to 'professionally' assess what you'll need to do to fix it.  Maybe it's just a pal.  Either way, get inside your Unit. 

... then, buy said friend lunch in the next town over.  

I am nowhere near you, and yet I have a recommendation: It’s not about finding a person, it’s about finding a compatible team. Visit ALL the REIAs in your vicinity for at least 3 months to build rapport with Agents who are engaging, investor friendly, and who are willing to show you the general terms of their employment. Don’t tell them you’re interviewing them, but that’s what you’re doing. Once you can determine who you want to work with most and (more importantly WHY), then you make your move. Agents are always looking for agents. This method puts the process on your terms and conditions. Hope that helps.

Aaron Phillips check out creditboards.com. The people there are doing same as you. It’s another community much like BP except for people working on their credit. I will say the site provided great help to me as I was climbing out of the downturn.

I’m on mobile, can’t find the edit button. Clearly, I am aware that US RT 3 is technically NOT an Interstate, but it is a full sized, full speed highway. Please pardon my colloquialism.