Try This 5 Step Process for Your Next Denver Property
Buying a great Denver investment property takes a lot of time and effort. You need to employ a combination of due diligence and hard work in several different areas in order to make your next deal a success because just one mistake with an investment property can end up costing you thousands of dollars. Whether you are looking to buy your first Denver property or your next big deal, use this five-step process to acquiring your next Denver property.
Write Down Your Property Goals
Good real estate investment deals come in all shapes, sizes and locations and if you are not careful, you can end up chasing down every single deal that comes your way rather than focusing on good ones. When you start chasing deals, you end up losing focus on what you really want. The first step in getting good deals is to know what you are looking for. Make a list of all the items you want in your ideal investment property and be sure to include specifics on location, price, size, room count and condition. Once you’ve made your list, use this guide to help you in your Denver property search. You probably won’t be able to find a Denver property that includes every single one of your dream items, but your list will help you get as close as possible.
Look at Every Denver Property
Advancements in technology have completely changed the way the real estate business works, and now you can get most of the information you need to buy online. Video tours and high-quality photography can make it feel as though you are actually at a Denver property. While all of this is great for research, it is important that you still see the Denver property in person. Deals that look good on paper can end up being duds while a deal you may have passed on can be incredibly successful once you’ve seen the property in person.
Make the Right Offer
When you find the Denver property you want, it’s time to make an offer. Where and how your offer is made goes a long way in whether or not your offer will be accepted. To be successful, you will need to learn which deals you can lowball and on which deals you need to come in strong. Before you submit an offer, try to gain an understanding of what the seller’s motivation to sell is. The price isn’t the only important thing to consider in your offer, you also want to make sure your contract has the right language. Very few sellers will sift through a contract that is heavy with contingencies, and you want to be sure your language is clear, on the correct form and that you include how you plan on financing in your offer. If you plan on using cash, you can probably reduce your offer price while if you are using lender financing, you want to be prepared to make your offer stand out. Also, be careful with the closing date. No seller wants to wait months to close, even if they will be getting a higher price.
Inspections and Title
Getting an offer accepted does not automatically mean it will close – there are still some hurdles you have to jump. First, you need to have all of the necessary inspections completed which requires an inspector that you can trust. Depending upon the inspection report, the best thing you can do might be to walk away. The other roadblock at this stage is obtaining clean title. Never make the assumption that the title is cleared and don’t wait a week before your close date to get the title ordered. If there are past liens or other mortgages, these need to be cleared and paid off before close.
Closing
The key to closing is to take a proactive approach and prepare yourself for anything that might come your way because issues come up at closing all of the time. There may be times where the house may not be in move-in condition or there are undisclosed fees and it’s important to keep the big picture in mind when things like this happen. Your goal isn’t necessarily to win a negotiation, but to acquire the Denver property so keep that in mind when issues come up during closing.
When it comes to real estate, the quantity of your deals is far less important than the quality. You want to be sure to do all of your homework and approach each deal in the right way. Building a great team can help you navigate the process of acquiring properties, and using the steps above can help you land your next big deal.