Recently we have noticed a very interesting phenomenon, when we make offers to the bank, it take them longer and longer to reply. What our realtor told us is that because the amount of foreclosure houses is just piling up on the asset manager’s desk, and so they are just overwhelmed by it. I say this makes it an even better moment to buy foreclosure houses. That would explain why this month alone we had 6 accepted offers. 2 out of 6 we have never even been to that property. We ended up close on one property, wholesaling 2, and renegotiate 1 with the bank. Another 2 we just outright canceled the contract with the bank. You might ask, how crazy are you to make offers to properties you never been to? Well, my answer to that is you must have an inspection clause in your contract. When I make an offer to the bank, I will have a 10 day inspection period for me to hire a qualified inspector to examine the property to make sure there is no problem with it. Now here is the beauty, in Missouri, there is no licensing requirement to be a “qualified inspector.” You can be a contractor and you could be qualified to be an inspector. And a good realtor can easily help you cancel the contract for you once you found out any problem with the property that would bust your budget.
That’s the Importance of Inspection.
Inspection really works!! One of the properties we have had a contract with the bank, we ended up not closing on it. It was because during the inspection, a major problem with the foundation was discovered. This house we originally expect about $5000 cost to fix it up to rental condition. But the inspector found out there was extensive damage with the foundation, and will cost some where from 10~20K just to fix the foundation. Keep in mind that we even had contractors to take a look at the house before we arrange for the inspection. However, sometimes an experienced inspector can find out problems that you wouldn’t have dreamt of in a million years. Also, try don’t use the inspector that realtors recommend, because it would create a conflict of interest. Realtors want to have the transaction go through, that’s how they make their money. But inspectors can potentially ruin the deal. So it’s better to look for qualified inspector from somewhere else. A good tip to find a qualified inspector: go to www.superpages.ca and search for inspector. Call at least 10 of them and ask them 3 questions: Are you a licensed inspector? How many inspections have you done (minimum 1000 houses)? What’s your background (background in structural engineering, construction is good)? Can you send me a sample of what your inspection report (look for detailed report)? Sometimes calling 10 inspector might not be enough, in that case, call 20, or even 30 until you find the right one
Giving Back
Last month I mentioned the idea of being financially free. To me, being financially free is just a step, a step to free you to do what you are really supposed to do. There are so many great ideas and things that people can door create to improve the world. However, a lot of it didn’t come true or happen because of lack of money. Last year, I came across a very unique non-profit organization that uses very innovative ways to solve the problem global poverty, and it’s called "Unitus". There is an old saying that instead of giving people a fish, you show them how they can catch a fish. I am a very strong believer of show you how it’s done, instead of doing it for you. See people in third world aren’t all handicapped. They were all able people that can work. What they are lack of is the tools, knowledge, and that little start up money to have their own business and make a living. So the founder of Unitus came up with an idea to give out micro loans to people. They lend out money usually less than $100, and so people can use that money to buy weaving machines, raising chickens, or buy wholesale product and resell them in the market. They also have supporting groups that educate people the basics of financial education and how to run a business. To this day, they have helped millions of people so that they can stand up with their own feet. I think it surely beats just handing them bread and milk everyday. If you would like to know more information or to make a donation, just log on to www.unitus.com – unite us.
Our New Website – www.vantagerei.com
We have made another website for our business in the United States. Feel free to check it out, we have very good wholesale price houses that we want to pass the opportunity on to other people. We have included all of the information necessary for you to decide if it’s a good deal or not on the website, so you don’t need to dig around for other information. It would also show you the steps we go through to qualify if this property is a good deal or not. Because we are people with integrity and we like to sleep very well at night, all of the deals that we pass on to you are the ones that we would keep for ourselves. That way, I don’t have to worry you not liking the deal or me stuck with it, because a good deal is a good deal.
YOU CAN SIGN UP FOR OUR NEWSLETTERS ON OUR WEBSITE: www.vantagerei.com
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