Friday, August 24, 2007

What is the property worth today? (1)

To develop a successful real estate investing career, your job is to find deals and put them together. Your job is not to become an appraiser, or a closing attorney, or a management expert, or a repair person. Use professionals!

How do Realtors, appraisers, and banks determine what a property is worth? They look at comparable sales, usually three to five sales of similar property close by. Realize that the properties have to be similar for a true comparison.

Get a list of comparable sales and see the sales price of every property bought or sold (and when it sold) for the street you want information about. Ask active professionals what the market is like. Whenever possible, get information in writing via fax, email, or letter. Put comparable sales lists and information in a folder for future reference.

What repairs does the property need?

You can find the cost of the repairs from two different sources: from the seller (most are truthful; a few are not) and from a good licensed, bonded contractor. Make sure the contractor is "referred" and that you get bids from more than one contractor recommended by respected Realtors or other investors.

Please stay tuned for more details.


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