The Team You Need to Buy and Sell Foreclosed Homes
Buying Realtor You want to find a realator who specializes in selling foreclosed properties for banks. These realtors work for one or more banks. They work on a volume basis they’ve to turn multiple properties a month to make a profit. Ask for people who purchase and sell houses which realtors are in this business.
Mortgage Professional You need a mortgage professional who will be honest with you and work swiftly for you. Today’s mortgage market is different than it was one month ago, six months ago, a year ago. Your mortgage professional must be up to date with the change in the market. Many times the mortgage professional at larger lending institutions will be more capable of adjusting to this market and the changing needs of it. I do not endorse any lender over another, but I do get financing from Wells Fargo and Countrywide, two of the nations largest mortgage lenders.
Selling Realtor If you get the right buying realtor, they will not have time to sell your home. He will be too busy listing properties for the bank. You want to find a realator that’ll get you the most money in the shortest time. This is a business where if a home must sell swiftly to make the maximum amount. You want a realator who can get you the right price, too low you lost money on the sale too high the property will sit costing you interest and utility payments.
Home Inspector Sounds easy enough, but if you don’t get this right it can cost you dearly. Imagine buying a home without running radon tests or asbestos tests, only to find out months and tens of thousands of dollars later that you can’t sell because the beautifully remodeled home is contaminated. It happens. Choosing the right home inspector can save you time and money. Also, if you pay attention to the home inspector reports, you’ll learn what to look for when you first visit a home. The key to choosing a home inspector is to make sure they hold certifications and can check your investment for mold, radon, lead paint, and asbestos.
Contractor The contractor controls the pace of work. The contractor also spends your money for you. They help you to develop and adhere to a budget. As the investor, a lot of what you need to know to purchase wisely is learned by working with your contractor. Some people walk into an investment property, see holes in the walls and ceilings, and get scared off. I walk in, see those same holes, and know that for $400-$1,000 there are no more holes in the walls, the plumbing is repaired and I have the ability to move onto another phase of my renovation.
Suppliers If you decide that you’re going to make a living flipping houses, here’s a hint: Don’t purchase retail! Home improvement stores like Home Depot and Lowes charges 20-40% markups for nearly every product on their shelves. To save money on supplies, you need to find a wholesaler and establish an account with them.. Typically you can find a wholesaler by Googling for it or in the phone book under Building Supplies - Wholesale. To get an account, you need a company name, a credit card and a bank account, that’s it.
CPA Now isn’t the time to buy TurboTax or do your own 1040EZ. In fact the 1040 will never be EZ again. You’ve profit and loss from outside of your normal job. You’ll need the help and experience of a CPA who is familiar with real estate investing. Also, don’t wait until tax time to find your CPA. Find one early, interview them and get their advice months ahead of time. This will make the tax season a whole lot easier and less stressful.
Attorney Not always an essential member of the real estate team, a real estate attorney can help you avoid some land mines as you grow your business. They can help you decide whether you should incorporate, form an LLC or go it alone as a sole proprietor. A real estate attorney can save you money on title work, can draw up rental/ lease agreements and can advise you on tax strategy when buying and selling your real estate.
Insurance Agent You need an agent you trust. Ask the tough questions so that your exposure will be at a minimum. Are you covered in case of loss from fire, flood, theft, or hurt workers/ tenants. If your policy leaves you exposed in any one of these major areas, your work could all be done for nothing.
Friends & Family Two of my favorite words. They will give you advice which is often good. If you feed them well, provide a frosty beverage or two, and don’t overwork them, the friends and family work crew will have fun, make your job more fun and most importantly work for free. Jobs like light demolition, painting, cleanup and many yard projects can be handled by anyone who owns a home.