I have a lead that is a lady that may want to purchase a small house, around 30K to rent out. What types of things are often overlooked for these clients, and what are some things to make sure i watch out for? thanks for any advice.

Is that realistic for your area?In mine you couldn't buy a foreclosed small land lot for that price.

At 3 percent that is only 900 bucks commission before expenses.

The number one thing I can pass along working with many investors is this.The most important question is to get the price range they want to invest in and then see what INVENTORY there is.

For instance you might get many calls for a 50k house but out of all active listings there are only 4 out of 50,000 listings and they went under contract the same day.

This tells you finding the property will be hard and when you find it the liklehood of being the winning bidder is slim to none.

There might be many people (buyers) looking int hat range but if the inventory isn't there it's a waste of your time.

We used to run investment ads using the craig proctor system.It would say something like this.

Buy foreclosed homes-0 Down
Free recorded message and list
111-111-1111

Something like that-we would get alot fo calls but most of them was crap like I want a 100k house for 50k and my credit is horrible and I just read this get rich quick book last night.

Instead we tweaked the ad to say Free list of foreclosures from 100k-1 million in this way if you know there aren't any foreclosed homes or inventory below 100k in your market put it in the ad.You will get less calls but you will get more quality leads and realistic buyers.

One of the downfalls I could see for your investor is the age of the house.If they purchase for 30k and it's worth 50k it still could be a bad deal.Really old homes 50's,60's and older tend to have knob and tube wiring,lead paint,asbestos,old galvanized piping,foundation problems that could easily exceed 30k to fix.

It would be really good to find a dumpy house with a few acres on it that is in the future path of commercial or residential development.Then rent it out until they get bought out by a developer for cash.

Well the situation is that she's looking for a 40k or so house, cash, to buy...basically its her mothers money and she's wanting to find her a place to stay, instead of in her house. She saw a FSBO a few days ago for 30. I came by to check it out a few days later thinking, by her description and location, that it was a lady that I knew. It wasnt but the house was actually pretty decent and perfect for an older lady as far as I could tell since I didnt get in. It looks pretty new. A small bungalow, Basically a box, new windows, upgraded from head to toe says the seller. The client says her mother is really picky. Kinda getting old and mean and she's having a time with her. She says her mother didnt like the house, but that she might buy it and rent it out.

Around here there are actually lots of decent 30 and 40 k houses. in certain communities. I'm pretty sure this one doesnt have asbestos, and frankly I dont think the client would care. This particular fsbo is in my old hometown, right down the road from a church and across from a small development that houses alot of older and underpriveledged folks. It would be perfect for her. It wouldnt be much money but hey sometimes its like that. Plus I'm pretty good friends with them.

Thanks for the reply.

If they opt to buy as-is it would be a good idea to have them sign an additional disclaimer that buyer was advised to have a home inspection but declined and have them sign,date,and time it.

Sometime seven if buyers choose as-is,or choose the inspections period and choose not to get an inspection they later blame the agent when something goes wrong and say the contract was explained to them wrong or they couldn't understand it.

yep, we have as is addendums for that.