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.