So you’ve finished viewing and doing your due diligence on a property, and you’ve decided to make an offer. Congratulations! This is a critical step that will have a great effect on whether this will be a profitable purchase for you or one that loses you money.
One of the most important parts of putting together your offer is deciding what price to offer. You want to offer a price that is based on a solid analysis of the property’s profit potential. Never assume that the asking price is a fair assessment of the property’s true value. Leave yourself room to negotiate the price and have your analysis ready to back up further discussions.
Along with your offer to purchase, you should also include a pre-approval letter or a proof of funds letter from your lender. Offers that are accompanied by proof that you have the ability to pay, have a much higher chance of getting accepted.
Lastly, don’t request more than 5 days for an inspection. Sellers appreciate buyers who don’t drag out the process just to buy themselves more time to dig for problems. 5 days is more than enough time to schedule an inspection and determine whether the findings are deal breakers or not. As you gain more experience, you might waive the inspection all together, but for now, keep the inspection contingency.
Here’s your assignment: 1) get a copy of your state’s purchase and sale agreement to get familiar with it and 2) find out from your local lender or bank what requirements are needed for a pre-approval.
Wishing you success and wealth,
Now, if you’re just starting out and trying to build a portfolio of cash flow generating residential properties, then follow a step-by-step system that feels authentic and is easy to follow. The Real Estate Financial Freedom SystemTM coaching programs offer a comprehensive, easy, step-by-step method to investing in residential real estate that will generate monthly cash flow to build wealth. Join our upcoming Real Estate Financial Freedom Virtual Bootcamp to get started on the fast track or take advantage of private coaching options at Real Estate Coaching.
© 2012 Real Estate Financial Freedom LLC
Jewell Staley created the Real Estate Financial Freedom SystemTM to guide her clients step-by-step to building passive income with real estate, in a fraction of the time they would on their own, without losing their shirt.
To get your FREE Audio “How to Replace Your Paycheck with Passive Income from Real Estate” and weekly timely tips to get started investing, visit www.JewellStaley.com.