Hi BiggerPockets,
I have researched articles but did not find detailed steps and things to do while buying a property (SFH, duplex, triplex, quads). Please kindly take some time and make this into very concise and complete steps to follow including optional paths. I would like to request BiggerPocket moderators and authors to kindly create global tutorials defining each process individually as guides keeping each phase separate from the other.
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My understanding of steps for buying a property would be:
1. Study real estate and its mathmatics
2. Find your niche and area suitable for that particular niche. Basic rule of thumb in my opinion would be for SFH consider average to good areas since families avoid below average areas with higher crime rates. For duplexes/triplex/quads consider area with more rental needs for example near universities.
3. Research, Research & Get tired of Researching before you pick your first property. Do MLS research build your possible list and than talk to real estate agent about those and visit highly candid properties. Make sure to do your homework on what to expect and mathmatics involved. Do not start visiting properties alphabetically ! It will be waste of your time and your agents.
4. So you found atleast 3 good investment properties in your budget now get your inspection team moving. They will dig in details of these and give you estimate of repairs and problems with properties. Hopefully this will narrow down your properties to 1 or 2.
5. Put down an offer for the property via your agent of choice. Make an advance payment (forgot the vocab for it ! Darn!) to show that you are serious about buying it. Negotiate price based on rehab costs and properties worth.
6. If offer was accepted what to do next ????
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I have read some scattered topics on all this but nothing concise detailing further. Someone please help complete these steps and updating mine because i know they are not complete.
Things to focus on :
a) When to apply for mortgage loan ?
b) When to apply for home insurance ?
c) What payments are required along the way ? like inspection costs around $200-$300 etc. Please elaborate WHEN to do these steps ?
d) What forms/documentation needs to be signed ? Must get signed from Seller/Mortgage Lender/Real estate agents etc ? For example Seller says property has "clean title" how do i make sure of that and how and what form to use to get this in writing to hold them accountable if they stated wrong or mislead us?
e) Do we need to have escrow involved ? If so than in what phase of process and what are basic guidelines for that ?
f) Please elaborate on closing the deal and its related costs so newbies like me have clear vision of whats coming ahead and costs that we might run into.
g) How to negotiate prices and how to save money along the way ?
h) Thousand other things that i missed.
Please make it very concise step by step process and easy to understand for newbies. Elaborate on tricky phases and best practices. This guide should exclude the profitability and 2% 50% 70% rules and should only focus on steps of buying a property once a person have done their calculations.
Thanks a million in advance because this will help thousands of newbies pouring in this field to understand the process and not make mistakes and fall in traps that other professionals may have faced.
- Inam
