Real Estate Investing

Using Chances Are Realty to help you find Real Estate Investments

How to Work with Chances Are Realty
it’s the quickest way for you to get your feet wet and something you can start taking action on right away. Plus it costs little money!
– Leverage the knowledge and abilities to analyze deals
– Develop a great relationship CAR to become part of your “power team” and whose opinion you will trust. We are available for questions about properties in certain areas
– Assistance with making a quick decision and additional guidance to help you come up with your ARV and calculate your offer can be invaluable when you are in a “crunch” situation.
– Access to a good, solid agent who knows your target farm area very well, knows how to use the MLS to “comp” properties, and has some experience working with investors
– Flexibility to NOT buy a property for $X just because we tell you to buy it for that price. You will know how to analyze these properties yourself.

Suggestions to finding investment property
Drive through your desired area and look for “for sale” signs.
– When calling a CAR, once the relationship is established, ask to speak to agents who are:

  • currently active in listing and selling properties,
  • have at least a couple years of experience,
  • work in your area,
  • And can assist you in making offers on investment properties.

Educating your agent

Make sure you clarify what you are looking for.

Making offers with your agent

Ask them to send you a handful of properties that fit your criteria. Start with the first property and ask them what they think it will sell for once it has been fully repaired, upgraded and in “turnkey” condition. Have them show you the comps they used to come up with that value to ensure they are truly retail comps, comparable to your subject property both in size, age and location.

Then plug in your formula of (ARV x 70%) – Repairs to come up with your offer price. Once you’ve done that it’s time to make your first offer!

When making the offer, we will use the standard Realtor contract for your area and will tell you what information we need. Things like the name or entity you will be using for your offer, how you will be financing the property and how many days you intend to take to close.

When first getting started a recommendation would be a 21 day close. This is a shorter than the standard 30 – 45 days, which will help give you an advantage, but it still gives you plenty of time to get your ducks in a row in case your offer is accepted.

Also tell us of any other contingencies, such as an inspection period. Such as standard inspection period. Normally 3- 10 days to give you a slight advantage (but still have enough time to do some due diligence on the property).

There will be other contingencies such as financing, appraisals, etc., which you can either waive or keep the standard agreement as is. You may consider removing them down the road as you gain more experience and confidence. Your agent can also give you some advice in this area.

Show me the money?

Two more items you will probably need when making offers on homes listed on the MLS are the EMD (Earnest Money Deposit) and POF (Proof of Funds) or a loan pre-qualification letter.

These two items are probably the main hang-ups for new investors looking to start working with agents and make offers on MLS listed properties.

The first one is an easy fix. An EMD is really just a copy of a check written out to the escrow company. In fact, you don’t even need to give it to anyone when you make your offer. You just need to give them a copy of it!

Now, keep in mind that several things would have to happen for you to lose that deposit.

First, you would actually have to get your offer accepted before they even ask for the money.

Proof of funds

Just to be clear, proof of funds is demonstrating that you have the money available to actually buy the house. And there are several ways you can go about providing this.

Time to take action! Contact Us Today!

     

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