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Tips on Being a Landlord
Tips to Negotiate Before Making an Offer as a Homebuyer
What is an Option Period for a Home Buyer?
How to Narrow Your List of Homes
How to Lease a Home in Texas
How to Buy Your First Home
Have any more questions?
Tips on Being a
Know Your Numbers
Calculate monthly expenses (mortgage payment, insurance, property taxes, HOA fee (if applicable), management fee (if applicable).
Your rental price should cover your monthly expenses.
It should also give you a little extra to pay with or to have for any future repairs.
Get Property Under an LLC
You need that extra layer of protection. If anything were to happen to your tenant, or anybody in the property, they can come after your personal assets.
Open a new bank account to separate your business income from your personal income.
Get with a Realtor
Realtor will guide you through the process, provide you with comps, weight out the numbers, and make sure you are getting top dollar your investment property.
Make Sure Your Property Looks Amazing
Make sure it’s clean, that repairs have been made, and if it fits in the budget, provide a fridge and washer/dryer
It will make you stand out then other rental properties.
Vet Out Your Tenant
Check Their Income. They should make 3x the rent.
Check Their Credit Score. Their credit history will help you decide how likely it is that they will pay on time.
Check Their Records. Criminal records, eviction records, verify their employment & address.
Draft a Lease Agreement
This is your chance to add the language and the terms which will control the rental agreement.
Hire a Property Management Company
The management company handles the day-to-day work to manage the property.
They answer calls, take care of any repair requests, and make sure that money is coming in on a monthly bases.
Know Your Numbers
Be strategic about it.
Depending on the market and how competitive it is, you want to offer a price that makes sense for you and the seller.
New Listing: Come in strong Older Listing: There will be room to negotiate the price down
You can negotiate the survey between the seller and buyer.
You may be lucky if the seller already has one that can get approved. It can save you about $400-$600, depending on the lot size.
If you are a buyer, I suggest squeezing this into your deal. It just gives you as a buyer peace of mind the first year.
This will cover most mechanical items and minor repairs request for the home for a small fee.
Seller’s contribution towards buyer’s closing cost
Look at these important numbers when buying a house: Monthly Mortgage Payment, How much money I need to bring to closing
If you need to raise the sales price, feel free to do so, roll it into the loan, and get some contributions from the seller towards your closing costs.
If you fall in love with the stainless steel appliances but not sure if you can also get this with the purchase, please ask your realtor.
It may cost you a price, or at times the seller will throw it in the deal.
Tips to Negotiate Before Making an Offer as a
What is an Option
for a Home Buyer?
What does an option period mean?
Time to do due diligence as a buyer.
Hire an inspector to inspect the house.
Inspection results will determine if you are comfortable moving forward or if you need to go back and negotiate.
Time is of the essence!
What is my time frame?
Look in your contract and see what was agreed on.
Usual time frames include 5-14 days.
Buyer pays seller the option fee, $10-$20 a day.
Two things to keep in mind: #1 Day 1 starts after the effective date, not the day you sign. #2 The Option Period ends at 5 PM.
Do I move forward or back out from the deal?
If you decide to move forward, the Option Period will be deducted from the sales price at closing.
If you decide to back out from the contract, the earnest money is the only cash you can recoup. *it all depends what both parties agreed on.
Look at the square footage of the house & the lot
1,500 square feet is a fair size for a 3 bedroom and 2 bathroom home
5,000 square feet or bigger for the lot size – depending on the style of home
Look at the dimensions of each bedroom
You’ll be able to tell if the home will be spacious or too tight
Look at the school districts
If you have kids, or planning on having kids, this could really help narrowing down your list
Look at the property taxes & HOA fees
Looking at how much you would need to pay in taxes and any HOA fees will also help in narrowing down your list some more
HOA fees can range from $100 to $12,000 a year
Drive around the neighborhood
Drive around the property area during the daytime AND nighttime just to get a feel of the neighborhood
Visit local grocery stores and restaurants to do your due diligence
If you cannot drive around the neighborhood, get on Google Maps to see what is around the property
Stay within your price range
Scratch out the homes on your list that are higher than your preapproval amount
It saves time when you stay in your budget
How to Narrow Your List of
a Home in Texas
Have money saved
These items will need to be paid in the first 30 days: Lease Application Fee, Deposit, Rental Insurance, 1st Month Rent, Pet Fee (if you have pets)
Show proof of income
Gather last two months of pay stubs
Entrepreneurs – need to show bank statements/IRS tax return
Make sure you make 3x the rent price Rent = $3k a month / Make $9k a month
Have a valid I.D.
Make sure you have a valid form of identification such as: Driver’s License, Passport, or Military I.D.
Make sure they are NOT expired
Get a realtor
A realtor helps speed up the process and answer any questions you may have
Realtors can help you draft a letter to the landlord/property management to give you a better chance to get approved
Start your home search
This is the fun part!
Let your realtor know your price range and what you are looking for in your new home
Fully complete lease application
Missing information can make you lose the opportunity of your dream home
Fill out the application completely
Pay the application fee & deposit
Make sure you have deposit ready
Landlord will continue to show property until you pay the deposit
Deposit locks you in!
Have money saved - Money is power
3.5% down for FHA | 5% down Conventional | 0% for VA
$200,000 | FHA-$7k at closing (no including closing costs) | Conventional -$10k
The more money you put down the lower your monthly payment is going to be
Talk to a lender
See what you can afford to buy
Lender will look at your employment and credit score
Get your pre-approval letter
Get a realtor (The Surge Realty)
Realtor will guide you through the process of buying a home
Make an offer
Take that leap of faith, take action, make a good offer
Ask your realtor to add a Seller’s Concession to the buyer’s closing cost. It could lower your down payment
Do your due diligence
Renegotiate with seller
Go back to lender and give them the numbers (property cost, HOA, insurance, taxes) so they can give you a rough estimate of your monthly payments before you move forward
Let the lender and title company do their job
Watch your spending - no big purchases or opening credit cards
Appraisal - plays a huge part. If it doesn’t appraise at value then renegotiate happens again
Clear to close
Go to title company, sign documents and property is yours
“FUNDED” is the magic word
Your First Home