Here’s What You Need to Know:
By Jamel Gibbs – When it comes to real estate investing, there are 6 important things you need to know in order to determine if you should make an offer on a property or not.
Without knowing these 6 things, you should NOT make an offer on a property. If you do try to make an offer without knowing these 6 things, you will quickly find out that a lot of time will be wasted and a lot of frustration will kick in.
- What is the asking price and the amount owed on the mortgage?
Without knowing this information, you are shooting in the dark.
- What is the After Repaired Value (ARV)?
If you don’t know what the house is worth, then this can cause you to pay too much for the house.
- How much work does the property need? Knowing how much work a house needs will help you determine it’s true value.
- What is the Seller’s Motivation?
This will help you in understanding how you can create a win-win situation for both you and the motivated seller.
- What’s the Best Cash Price the Seller will Take?(Only ask this if there is a spread of at least $30,000 or more)
- Is the Seller Flexible on Terms?(Only ask this if there is less than $30,000 in equity)