Tuesday, December 16, 2008

Real Estate Investors: Checking Public Records

By: John Turk
Knowledge is power! Real estate investors that take the time to dig into public records will no doubt save time, money and minimize stress. With the facts in hand, you can approach the seller with confidence and provide options based on the property value and the seller’s net worth. So take a deep breath and relax as I show you just how to obtain the information you’ll need.

What information do I need?

The type of information you’ll need includes the price and date of the last sale, the amount of each mortgage, when the mortgages were taken out, the terms of the loan(s) and what other liens encumber the property. All of this can be obtained quickly by checking public records.

How is this information used?

With this data upfront and in hand, it creates a winning scenario for both the seller and I. The information helps me construct three doable offers for the sale of the property. For example:
• Equity in home: A substantial equity in a home is what every seller hopes to have at the time of sale and the higher the equity the higher the chance is that the seller will hold out for a higher offer.
• Existing loan terms favorable: Another offer could be buying the house subject to the existing loan
• Minimal equity: If the seller has minimal equity, a short sale acceptance by lender offer can be favorable.
All of this information is pivotal to how the offers are structured. It’s best for the real estate investor to come to the table with a comprehensive offer rather than making costly mistakes by creating offers on the fly.

How do I find this information?

The two main sources are staring you in the face! That thing on your desk called a computer is your information highway to the public records on the internet. With a little digging you can find all the information you need. The other is the seller.

Most investors collect seller information over the phone. While this is valuable I have found that many homeowners simply do not remember the details regarding their home/loan. Then there are those who would rather not open up to a complete stranger over the phone. I’ve learned over the years as a real estate investor to not relay on the seller's data, but I do verify it once it looks like I have a deal.

In closing

As a real estate investor it is your responsibility to always be prepared. The seller is looking to you to find a buyer for their property. With a little due diligence, you can save grace and impress others. The importance of this data being accurate will allow you to confidently structure offers before you even visit the home. The seller will be impressed and the boost of confidence also does well for the ego

Real estate investors that take the time to dig into public records will no doubt save time, money and minimize stress.John Turk is a real estate investing expert on Wholesaling & many things pertaining to this subject. Check out his site to learn how to make a literal fortune in the wonderful world of real estate investing, along with the latest tips & strategies used by the industry experts right now at greathousedealsflorida.com

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