Real Estate Investor Tools You Need Before You Get Started
In this series we are looking at How to Go From $0 to $10,000 a Month as a Real Estate Investor.
Today, I would like to give you our Top 14 Real Estate Investor Tools we use to evaluate real estate investment deals on a daily basis; you can start using them immediately.
Real Estate Analysis Spreadsheets
We use this everyday and it’s great tool made by Scott Scheel of Commercial Property Academy. Use this tool to evaluate multi-family properties and determine cash flow, projected cash flow, debt coverage, expenses and value.
This is a great spreadsheet that you can enter in a range of values along with projected expenses resulting in potential profit. You can use this spreadsheet to determine what price to offer on a bank owned home.
1. Work Order
We use this spreadsheet to submit to our contractor. He will then give us a detailed bid with a contract.
Use this spreadsheet doing a walk through on a property to determine what you want to renovate, you can then copy it to the work order for the contractor.
Determining value is the most important part of buying properties, I would highly recommend that you work with a licensed realtor or an appraiser that will help you determine value. The tools below will work, but before you pull the trigger I would consult an expert. You can also read this blog post on How to Value a Rental Property.
Sign up for a free membership and click on the “Homes” tab, and scroll down to “Recent Home Sales” type in the address and get a Zestimate. The picture below is of a house we are closed on today. We valued the property at $175k- $200K after fix up was complete. It looks like from Zillows Zestimate the comps are in same range.
This is the service we use in Arizona; the data is complied from the county tax records and is very informative. You can pull comps, trustee sales and pending foreclosures.
You will want to set up an LLC to buy and sell the properties through for liability reasons, we set up all of our LLC’s through Paralegal Plus, and they operate in AZ, CA, and NV.
2. Legal Zoom
You can set up LLC’s across the nation at a reasonable price using Legal Zoom.
We use this Purchase Contract along with the standard Arizona Real Estate Contract provided by the Arizona Department of Real Estate. You’ll have to change the verbiage to reflect the County and State you are located in.
Using this lease will protect you as the landlord and give clear instructions to the tenant. This agreement is geared toward Arizona law so consult your attorney before using.
Use these if you are going to sell a property and provide seller financing.
We use this frequently; they provide a great resource for investors to qualify tenants. They use a point system to determine the quality of the tenant.
Foreclosures and Reo’s.
They have the largest database for foreclosures, bank owned properties, tax liens and FSBO. You can use this to locate deals in your area.
They have a 7 day free trail along with email property match alerts. They also have an extensive database of foreclosures.
Notice: These documents and spreadsheets are provided for general informational purposes. Before you utilize any legal form you find here, you should have it reviewed by a lawyer in your jurisdiction to be sure that it meets your legal needs, and will be held valid by a court in the jurisdiction where you reside.
In the next post for this series we’ll be learning how to Assembling Your Investment Team, having the right people on your team will make the investment process easier and more streamline. Your team is your key asset to creating momentum and making big money in real estate.
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If you have any questions please feel free to leave a comment below or email me at SeanTerry@cox.net.
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