SMART Residential Real Estate Investor eGuide

3 Ways To Make Money

3 Ways To Make Money

4. Making A Strong Offer

Pre-approval is key. Good listing agents will advise their sellers to require a well-qualified potential buyer. Solid documentation should accompany the offer, including signed preapproval lender from a reputable lender and proof of funds to cover the down payment and closing costs. Documentation of your excellent credit score should also be part of this package.

Subject To
As mentioned above, many income properties listings are drive-by only, for all or some of the units. Offers are often written "Subject to satisfactory buyer inspection of subject property" or similar language.

Existing Tenants
Do you want existing tenants to stay in the property after close of escrow, or delivered empty? Keeping tenants that pay well and on-time is a big plus for a new landlord. However, if there is a lot of repair work to be done, or if the current owner has indicated poor tenant performance in the past, it may be desired to have existing tenants removed prior to or shortly after Close of Escrow.

Care must be taken to understand current lease agreements before these decisions are finalized and incorporated into the purchase offer. See Estoppels/Lease Agreements, below, for more on these considerations.

You should be aware that many HOAs restrict the number and/or percentage of non-owner occupied units in a complex. The information should be easily obtainable. We make sure that we get an answer before submitting an offer; it helps all parties.

Lenders and FHA/VA may have restrictions on the number of allowable income units in a condo complex. Check with your lender to see what those may be.

Let Us Help

Feel free to contact us to get started on your path to real estate investing success.

We'll be glad to answer any questions you may have about residential income properties,

and guide you every step of the way:

(562) 208-9818

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