We make mistakes when we’re in a rush – simple things from a foolish typo to major things like not sending a structural engineer out to a property to check minor cracks (that turn out to be major and cost you $12K to fix). So I want to heed caution to getting behind in the buying process and rushing through important pieces. You need to be prepared to buy an investment property!
This is especially true for my investor clients who have done a deal or two and feel confident going into their next one.
Okay, so here’s what I advise you to do now if you’re planning on buying in the near future:
Gather the following items to make getting a loan smooth:
- Last 2 tax returns
- Last 2 pay stubs
- Last 2 banks statements
- Last 2 credit card statements
- Loan statements (home, car, student, etc)
- Home insurance policies
- Investment statements
Review your insurance policies:
If you’re going from deal one to deal two it might be time to consider an umbrella policy. And if you’re on property number 10+ things get more complex and you should talk with a real estate attorney, but until then a simple umbrella policy will cover multiple properties.
Bonus – while your shopping policies for your new property, shop the rates on your entire portfolio.
Choose the right agent
It doesn’t have to be me, but I beg you to vet the agent you’re working with and don’t just work with your neighbor or friend because you know them. Start interviewing your agents now, make sure they have the experience and network to navigate tricky transactions. Can your agent get that structural engineer out same day so you can get an assessment before the inspection objection resolution deadline? Do they know what different lenders are offering to fit your financing needs so you don’t have to do the leg work?
All these minor things are make our breaks in a smooth & successful deal – oh and it could save you a ton of money!!
