How to Do Everything Wrong In Real Estate and Still Be Successful. Franklin Cruz
can compare them to other brokers you are considering.
→ Most important of all: Do not let them pull your credit until you know this is the broker you want to do business with. Keep in mind, every lender will need to pull your credit. A good credit score will mean the difference between saving five hundred dollars to ten thousand dollars. It is always a good idea to maintain a copy of your updated credit report. Sign up for a service, or personally request a copy from the credit bureau.
Questions to ask:
“Treat people the way you want to be treated!”
Title Company: This is where your deal will close. You need a good one, because they will order your survey and make sure your deal is closing properly. Your title company must have your best interests in mind when closing a transaction – so you need one you can really trust. Title companies are usually run by a law firm, and charge approximately 1% of the contract sales price. On the HUD statement it will itemize all costs incurred, including title insurance. If you plan on being a real estate investor who does more than one transaction a year, this is where relationships come into play. You’ll soon see the mortgage broker has his favorite title company. Why? Because that title company will break their back to make sure deals close!
“Which would you rather have protecting your investments - a Pit Bull, or a little Chihuahua?”
I would rather have a pit bull that goes for the jugular. You need one, because they are tenacious. Your team will work together because no one cares about your property more than people who stand to make a profit from it.
Questions to ask:
Appraiser: The person who sets the value of a property. The best way to find a good appraiser is through referrals. The real estate agent or mortgage broker will often have a list of appraisers you can interview. You can also ask around to see who other people use.
Questions to ask:
Real Estate Attorney: A good real estate attorney is invaluable. Keep in mind that you are operating as a real estate investor, and having contracts written up which can be worth a million dollars or more. Getting a real estate attorney to look them over to make sure you are not walking into a lion’s den can save you untold trouble and profit down the road. Simply trusting that contracts are well written, and that you are doing business with honest people, is not the way to ensure your profit margins remain high. An attorney may find an error which could cost you thousands of dollars, and it is crucial for such mistakes to be found in the contract development or negotiation phase. Be smart and protect yourself!
Talk to your attorney, ask questions, and learn. You are paying him by the hour, so absorb as much knowledge as possible. Remember, they are charging you!
Contractor and Subs: More than likely some of the properties you will purchase will be distressed or in need of repair, and as a result you might need a contractor and various subcontractors. Do not hire your uncle (or some other relative) because he said he could lay tile! Hire licensed people and ask for referrals. Get pictures and addresses of homes they have worked on. These are the people you are depending on to pull the permits you need, properly follow building codes, and repair the property you have just bought. Their skill, knowledge, and expertise will have a lot to do with your profit. Choose them wisely!
“Do not hire your uncle (or some other relative) because he said he could lay tile!”
Contractors are also good property inspectors. Having a general contractor inspect your property prior to putting a deal under contract or during the due diligence period (the time usually given to research a property prior to assuming financing or closing) is crucial.
Questions to ask: