Buying a property listed on Re/Max Incline Real Estate’s CAP Sheet
We hope this brief timeline/explanation will help as you move forward with buying a property.
We keep a list of properties with high ROI, or capitalization rates posted on our web site. From this sheet you can see many details on each property, and see if any interest you.
Before a property is posted on the CAP Sheet, we send our contractor out to the property and he walks it creating the estimated rehab numbers that you see on the sheet. Please keep in mind with these numbers that this is a very basic estimate of the work that he sees that would need to be completed to make the property rent ready. During this initial walk through he can only gauge items that are visible for example we are not able to access the roofs so we cannot determine if a bid will be needed for the roof. If the property does not have utilities on during this walk through other items like appliances cannot be estimated at that time. Again this is a very general estimate and is provided to give you as the buyer a snap shot of the work that may need to be completed prior to the property being rent ready. This is not a formal inspection, or a bid, just a rough guide.
We only place properties on the CAP sheet based off this initial walk through that meet the criteria that the majority of our investors are looking for.
If you’ve seen a property on the CAP sheet that you are interested in here are a few items to keep in mind:
You as the buyer can determine if you want to make an offer at any price you wish.The suggested price we have listed on the CAP sheet is just that- a suggestion to guide you to a reasonable higher return rate. We will be happy to talk through this process with you and you as the buyer have complete control on what to offer the seller.
Once you have made an offer and it has been accepted we will schedule a formal inspection of the property. This process is conducted by a third party, professional inspection company. This company is able to provide a more thorough examination of the condition of the property as a whole. We attempt to make sure that utilities are on during this inspection though sometimes, utilities are unavailable during the inspection due to local conditions, such as broken pipes. Our contractor meets the inspector at the property and goes through the property with the inspector. This allows our contractor to better understand and explain the report provided to you after the inspector's work is complete. This also allows our contractor to update the original rehab estimate from the CAP sheet and create our actual bid for the full scope of work needed.
We will provide both the original inspection report and our bid for the work needed to you.
Once you have the inspection report and our bid for the work needed to get the property rent ready you have three options: