EVALUATING THE PROPERTY TO PURCHASE

Greeting

Before I get started in the steps to take or what to look for when evaluating the property to purchase, I would like to share my views regarding having or not having a mortgage when purchasing real estate.

Strait up, I prefer cash purchase over having a mortgage. There are time when having a mortgage beat the alternative of not getting a piece of real estate because you don't have the cash.
As a real estate investor, I have come to realize that having no mortgage or very little mortgage is the way to go. If you have a thirty year mortgage, by the time it is paid off you will have paid back almost three times the amount you borrow.

STEPS IN EVALUATING THE PROPERTY

1. Location. You probably have heard the saying in real estate talk " location, location, location". Whenever buying real estate always consider the location you are buying in. When purchasing in high rental area you might want to visit the property at various hours of the days and on weekends.
2. Exterior inspection. Check for the structural integrity of the building. Are there any cracks in the foundation wall or on any brick or block wall?
Are there any bulge on any wall? If you answer to any of step #2, you might want to call a professional.
Trees that are growing up against or too close to the building should be removed or trim back from the building.

3. Interior inspection. You will be checking electrical, plumbing and mechanical or heating system. You might want to upgrade the electrical system if its fuse and add hard wire smoke alarm. Are there any stain on the ceiling which might indicate plumbing or roof problem?
As you look around the inside of the building check to see if there are trash, furniture, junk and other items that will have to be removed. There will be on going expense associated with trash removal during renovation.

Those of you who are not familiar with my background might find some comfort in knowing that I hold several certification in building construction. I am ICC certify in many areas of the construction process. I am currently employed by the City of Wilmington as a Building Inspector. I have overseen and approved lot of construction projects.


By being part of a real estate investment Group that is committed to the cause and have similar goals can be seen as a positive accomplishment. We can set the standards and raise the bar as to how the group is to function and govern. We have heard the word transparency in the media. The manner in which the real estate investment Group conduct and govern it selves shall be transparent. having in the group members who are Attorney, Tax advisor and accountant would help in maintaining transparacy.

ITEMIZE COST FOR RENOVATION

Greetings to you as you read this "Procedure", which will become known as the living document.

Group investing must be taught within the family. Group investing must be taught within the Black Community. Group investing must be taught with the understanding that it is a tool that can give us control. Group investing must be taught that not only does it gives us control economically but that it also shows us that we can accomplish great things by working together. What this Investment group will require each one person to make a commitment. A commitment to put aside one hundred dollars ($100) each month. Please send me your comments.

This ivestement group will begin to invest in residential real estate,resort real estate and later extend to other real estate venture.

I have listed some of the cost associated with purchasing a property to renovate.

Some Itemize Cost of the renovation Process

Price of Property
Additional Cost
Closing Cost
Cost to produce Drawings
Permit cost
Initial Clean Up, Trash removal, Furniture Removal, etc.
Plumbing
Mechanical, HVAC
Electrical
Roof, Replace/Repair
Exterior Painting
Window Replacement
Brick Pointing
Sidewalk and curb
Tree Removal
Framing
Drywall, Hang & Finish
Bath room, Vanity, fixture, flooring and wall tile
Kitchen, cabinets, flooring (tile)
Dinning room Flooring, (laminate, hardwood)
Living room Flooring, (laminate, hardwood)

As you might already seen, the information that is being passed on is talking about forming an investment group. The idea of putting away a fixed amount of money to invest as a group in real estate should not be alarming. We should already be putting aside a fixed amount of our pay for a rainy day, kids education or retirement. As a matter of fact this should be done for all the stated reasons. This commitment to put aside a fixed amount must be taught within the family. The idea of forming an investing group will be challenging because what must be overcome first is the idea that it can not be done, that you are going to be "Rip off" or that we as Blacks just don't work together. You have heard the expression countless times we are like "crabs in a barrel", as soon as you reach the top to get out you get pull back in by another.

Once the objections (CHANGE)of, it can not be done, that you are going to be rip off or that we as Blacks just don't work together to one of o.k. I will give it a try. Lets see if they can deliver. You will come to realized that you had nothing to fear, but fear itself. I invite you to be a part of this development "Procedure". Send your feedback to me. Lets built a multi million dollars Investment group that will be shown to future generation. Are you getting excited as much as I am? Some of you, that is reading this right at the moment, will be the founding Mothers and Fathers that will write the "Procedure".

This "Procedure" will state our "Mission Statement", the purpose for the Investment Group and how the Group is to govern itself. This Operating "Procedure" will become a living "Procedure" as it adapt to change in time and Government policy. The Investment Group will strive to fund its own project initially for the first five projects which should have an estimated value of at least two hundred and fifty thousand dollars ($250,000. WHAT IS THIS?before it attempt to leverage its assets. Any levergeing of the Group assets to fund any investment project must be satisfy, paid in full within five years.

CHOOSEING A CONTRACTOR

Picking the right contractor for the job can be a nightmare for the newbie investors as well as the season investors if certain procedures are not followed.

As a Building Code Inspector and investor myself I have seen just about everything.
So how do you decide which contractor to give the job to?

CHOOSING THE RIGHT CONTRACTOR FOR THE JOB

1. Get references, talk to previous customer that the contractor have done work for

2. Check to make sure that the contractor has a business license in the state that the work is going to be done and that he also have a business license in the Jurisdiction. Most city or Municipalities require this. Contractor working in the City of Wilmington of the state of Delaware, must have a State and City business license in order to conduct business in the City of Wilmington.

3. Have the Contractor put in his estimate that he will be getting the necessary permit before he start the job. Some Job will not require getting a permit, such as painting and installing carpet but still require that one has a State and City business license in order to conduct business in the City of Wilmington.

4.The time that it will take to complete the job should be stated as well as any penalties that may be exercise by you should the contractor go beyond the completion date. Judgment pervales here because acts of god is beyond the control of the contractor. Rain, snow and other circumstances might have to be consider in granting an extension beyond the original completion date. The point is, if the contractor know there is a penalty for going beyond the agreed completion date he or she will be most likely to stay on target and not have a three months project turn into a year long project.

GROUP INVESTING OVERVIEW

Venture Capital from my perpective, from the start before I research the definition is putting our reserch together to achieve an objective.

There are a range of topics that I would love to get feedback on. some topics include Trust, Partnership, Pooling our money and Family just to name a few.

I am starting something here that will continue long after I am gone. I am talking about the systematic putting away of some dollar amount for the purpose of investing in real estate.

Please don't shut me down before I tell you how and what we will accomplish. Group investing allow individual to put there money together for a common objective. That common objective at this moment is to acquire real estate in resort and residential area.

If I could find twenty individuals to contribute one hundred dollars a month for one year then that individual would have contributed twelve hundred dollars for the year or as group twenty four thousand dollars. Now some of us will be able to contribute more but at a minimum of one hundred dollars a month.

A number of questions is probable now popping up in ones mind. Is this another berni nadar scam? How is the money going to be held? Can I get my money back if I change my mind later? Will I be able to pass the investments on to my love ones?

The money will be placed in a bank and statement would be e-mail out to everyone each month. Withdrawal could also be set up that at least two signiture are required.

If one should decide that they want out before the end of the twelve month cycle then that person contribution would be returned without any interest. Anyone can get there money back before the group decide to take up a venture. It is my intent to have the group decide on policy procedure under my core principle and mission statement for the group as a whole.

My idea behind all of this is for financial security for our family as well as our own retirement. Whatever investments we make will be able to be pass on to our love ones. This process when implemented will be able to independenttally function regardles of us being in this world or not.

There are lots of examples of organization, business or even government that were started by a single individual or group of people many years ago and those individuals or group of people are no longer with us, yet the organization, Businesses and government are still around today, still functioning. The same will be said about the organization that I envision and is about to put in place.

I would like to develop a process, a cook book procedure, something like what the owners of a franchise company does.
If anyone of us wanted to buy a McDonald store, we would have to go through a series of training where we would be given that cook book as to how to operate the stores.

I have had a tremendous amount of comments and encouragement from you folks that I am forced to continue. Thank You.

To get started on this Investing group we need Attorney, Tax Aadvisor and Aaccountant to contact me. If you professionals believe as I do, then lets put our skills together to form this group. I would very much love to hear also from those of you who are not Attorney, Tax advisor and accountant