1. Gathis information – the sellers will provide a description of the property, including floor sizes, number of rooms, tenancy, income and expenses and any othis information you ask for.
2. Examine the property and the neighborhood
3. Determine estimated depreciation and expense amounts
4. Set the rate of return
5. Organize the values under comparable sales, cost and income approaches and average them.

Make a point to see the property yourself. If you like it and think it may make a good investment, contact the seller or the seller’s broker to express your interest. At this time, request a setup document that includes the following:

1. Street address
2. Formal description of the property.
3. Tax lot and block numbers (legal address).
4. Assessed valuation of the local property tax authority.
5. Detailed schedule of income and expenses and net income. Income should include a detailed rent roll, expenses should be itemized and backup invoices made available for inspection.
6. Asking price

The next step is to arrange a more formal inspection of the property. It is recommended to hire an appraiser, but also to understand the appraisal steps as well to see any future growth potential the appraiser might not mention due to liability.

Ensure you have complete documentation of the property including: copies of leases, lot number and area of land, survey or detailed diagram of the property, building size and age, zoning regulations for the area, real estate tax, insurance and othis expense data.

Start plugging in numbers to calculate the price you are willing to pay based on an income and expense projection with reserve allowances built in.

Phone

Address

Email

Tel: 214-432-0551
Fax: 888-676-8475

1501 Hunters Creek,
McKinney TX
75070

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