If you’re in the market for a new property, but you’re not sure how to go about it, don’t worry; we’ve got you covered. This guide will walk you through the modern rules of DDP property and how to get into that sweet market at the best possible price.
With an oversupply of distressed properties out there, it can be tough to tell which one is going to give you a better bang for your buck. But by following these simple tips and tricks, we hope that your journey will be a little bit easier!
Step 1: Find the Right Foreclosure to Buy
The first thing you’re going to want to do is to find some foreclosures that are ready for quick resale. By specializing in this niche, you can get a better deal on the property.
Step 2: Choose your State Wisely
Foreclosures are hard to track down, especially when they’re in one state. You don’t want to hop around too much, so choose your state wisely! For example, some states have more foreclosures than others. Make sure you research all the states in your area before making any decisions.
Step 3: Compare Prices
Once you’ve found a few, you can then go on to compare prices. Different states have different price ranges, so make sure that your target state’s price is within your range. But remember to factor in those important things like repair costs and the recent housing market!
Step 4: Buy Wisely!
Once you find a great foreclosed property for a reasonable price, it’s time to set up a meeting with the owner and put in an offer! You can haggle over the price or talk about payment plans (if needed). Make sure to bring these things up with the owners ahead of your meeting.
Step 5: Prepare for Success
Once you’ve made an offer, the seller will most likely accept it and write up a contract. Make sure that you read this contract carefully and understand all terms and conditions before signing! Make sure to note down all negotiations with dates, locations, times, etc. on a sheet of paper, as well as notes about your conversations with the seller. You’ll want to ask for any updates or changes you need to make on the contract, as well as for a copy of it! Keep this document safe in case anything should go wrong afterward.
Step 6: Schedule an Inspection
Once you get the contract signed, you need to schedule an inspection! You might be tempted to skip this step, but trust us; you need to let the inspector do their job. They’re experts who know the problem areas of houses better than you will. If they find something wrong, get on it right away! The sooner you address those issues the better, as the costs will be much less now that it’s been found out.
Step 7: Get the “Poop” Scooped
Unless you’re really into that kind of thing, there’s no need to go into the property and clean it yourself. There are services out there that specialize in this, and they can get it done at a lower cost! Think about all the money you’ll save by letting someone else do the grunt work for you. You might be tempted to save money by doing some of the cleaning yourself, but if you don’t have any experience, you might end up costing yourself more. So, rather than risk it, let the professionals do it.
Step 8: Keep Your Inventory Up to Date!
You’ll soon realize that as a landlord you have a lot of work to do. In order to stay organized and on top of things, you need to keep an up-to-date inventory. Include details like home details, repairs that need following up on or completed, and anything that needs to be worked on in the house. Be sure to keep a copy of this for yourself as well!