Do Your Due Diligence When Someone Says Buy My House

Buying a house requires some serious due diligence so you do not get burned.  Based on what is said by an investor in Houston Texas he provides guidlines.  Also for anyone that is asking you to buy my house.  Ray who deals with houses for sale by owners in Spring TX, Cypress TX, Harris County, Montgomery County, Tomball Texas, the Woodlands TX, Sugar Land, Katy TX and anywhere in the Houston Metro area of Texas.  One of the we buy houses websites is

When we say “We Buy Houses” most of what we talk about will apply if you are a lender or a partner or Principal in the transaction. If you get these elements right you will probably be okay.  Ray who runs several real estate clubs says:

a house to buy in Houston TXBy My House Investors Due Diligence and Loan To Value (LTV):

LTV this term stands for Loan to Value. It is actually a misnomer. In the classic sense we would say on a 100k property, and we have a 70k loan (total amount of loans) then our LTV is said to be 70%. For most lenders and investors if you can be “all in” then you have a 30% buffer in the event you have unforeseen problems, like house not selling or if you are a lender, your borrower gets hit by a bus.

The inaccurate part comes in but perfectly valid is as an investment we might say we don’t want to be in the deal more than 70%. This would include repairs, loans, projected holding cost, purchase cost, etc. As an investor, partner or lender, this is a really good place to be and in today’s market if you live by this rule, I am sad to say you are sitting on the sidelines.

We Buy Houses with Due Diligence and Insurance:

First Rule, remember every insurance company is really made up of two divisions, the division that takes your money, your friend, confidant, drinking buddy. Then the other division, the Claims division these are the people who deny claims, don’t return phone calls, lets your units sit empty for weeks on end. This is the division that give the expensive we buy houses seminars.

Insurance for Real estate comes in several categories;

Title Insurance: Absolutely read and understand the title commitment. You want to verify the Legal Description, the names of the Sellers, Exceptions to title. This could be a long discussion but sit down with your title company and ask questions. If you are a lender then you have to understand Mortgagee’s insurance and make sure you get it.

Property Insurance: There is a difference in a Vacancy Policy, Hazard Policy and Builders Risk policy. Make sure this is paid for out of closing or before closing. This is where, if you get it wrong you will take the expensive seminar. Ask me how I know.

Survey: Okay, I know, its not really insurance, but its close. Do investors always get surveys, no, should you always get a survey? I don’t know, but I have personally been involved in problems several times because I did not get a survey. If the situation is flaky, get a survey. If it’s a normal lot and block situation and you can look at the plot map, maybe you’re okay. Notice I said Maybe.

There are other insurance like liability insurance, but some things to minimize losses are not to hire employees, in other words get a signed contracts with rehabbers, and don’t be doing stupid dangerous things like hauling trailers around (my attempt at being nice).

Buying an Ugly House in Spring TX  at EZ House DealsBuying Houses Due Diligence and Inspection:

There should two times this is done and if you are a lender then three times. First time is when you first find the property. This is critical and there are several things you need to look out for but our main goal is to avoid the things that will kill your exit strategy. For example houses that flood don’t have a good exit strategy, period. This type of investment property is for criminals. There are many more and you either need to know what these are, or have a team member that does. The second inspection needs to be the day of the closing. Make sure the house and all of its parts are still there. The Third time is for lenders.   Never, never, never give all of the rehab money out at one time unless it is, say about 10k. 20k then have one inspection before the second draw, and no, you don’t get to charge interest on this final amount until you hand it to the borrower.

Due Diligence and Exit Strategy:

I think there should be at least two viable exit strategies but not necessary. For example if this is a Fix-Rehab-Flip then how likely is this? There are many examples of where some houses sell and others don’t. There is a reason for this and understanding the market is crucial.   Would you do a rehab with a sales price of 300k on a 10 year old house where they are building new houses, same size for 300k? In this case, not a good exit strategy. Your finished product has to have demand. We always want to look at DOM.   Be careful DOM in the wrong hands could be sure death. In the above examples DOM could lie. They could show for the Subdivision the DOM is low but it may be that there were a lot of new home sales, but what is the DOM for 10 year old houses competing against the new houses. Backup plan, if you don’t sell, then what. Can you refinance? Can you owner finance?

Due Diligence and Documents:

Get this right. When you are buying an ugly house or any house for investment. Make sure you have the documents necessary in every single transaction; Deed, Settlement Statement, Purchase Agreement (these are mandatory in every transaction) If there is a loan then Promissory Note and Deed of Trust. In addition we want insurance policies. Also remember the Title Company Attorney does not represent you and I almost never use them. Your Real Estate Attorney can prepare the docs and send the title company the docs.   Also remember most attorneys are not investors and to ask the Investment advice is probably not in your best interest, on the other hand they can probably keep you from making technical blunders.

I could probably write a book on each one of these with just my mistakes. We have to understand all of these elements, but there are a lot of smart people around if you just ask the right questions.

So make sure that you handle very carefully the details of due diligence when buying a house.  Follow these guidelines and you will protect yourself and your investment.

Numerous Benefits of Bathtub Restoration

While hosting visitors in your home and they visit the bathroom, the bathtub is going to be one of the major attractions. However, if it shows signs of aging, then it will no doubt look discolored. In such a situation, you will need to do bathtub restoration. Below are some of the benefits you get as a result of refinishing your bathtub.  You can also visit for more information.

While performing a refinishing project, your chosen contractor can easily change the tub color, do a replacement of chips and do lots of repair work that will no doubt make it look new again. Consequently, you will significantly cut down on costs. Replacing the whole tub can be quite costly. Doing a refinishing is faster and easier on your finances.

Restoring your bathtub will cost you 80% less when compared to doing an entire replacement of the bathtub. If you think about it, you will realize that it is not so easy to replace your current bathtub with a new one. A contractor would have to tear it from its current location and replace plumbing, add drywall, do some painting and get rid of the old tub. There is a stark contrast when compared to a restoration job which involves less work.

The option of restoring a bathtub is also environmentally friendly. Replacing it on the other hand is not. Just imagine the number of tubs that fill the landfill if you choose to do a replacement. if you think about it, you will realize that they are countless bathtubs. However, if you are someone who prefers to conserve the environment, then doing a restoration job is a good guarantee that the tub will not be filling up a landfill.

As mentioned previously, your chosen contractor will do less work when doing bathtub restoration. The same cannot be said for a replacement task. Therefore, you will worry less about wasting of plumbing, tiles and drywall. Also, no huge mess will be created in the process. It would only takes a couple of hours for the job to be completed. This greatly saves a lot of time.

Bathtub restoration is a process that greatly increases the lifespan of your bathtub by almost 15 years. Although a new can last even longer, the price factor is an aspect that does not do you any justice. Even if your bathtub has dings and cracks, a professional can easily fix them while handling the refinishing task. Instead of spending considerable amounts of money on a new bathtub, consider a restoration job first.

Buying Public Housing – Is it Worth It?

For young families, and in the selection of new apartments is one of the best choice. Has a favorable location, adequate infrastructure and services are relatively good, common living happy family on one floor, including purchase price and the apartment also has a repayment schedule …, is the weak housing element that can not be compared with the apartment.

But to buy one like the apartment was not easy. Unlike other commodities, real estate is one item that is difficult to buy and hard to sell because of liquidity, as the magnitude of assets to be decided.

Based on my own experience, along with many friends (there is demand for housing in the long term), then we would like to share one experience of purchasing a condominium for you as follows:

Owner: This is one the most important factors when you decide to buy a condominium. Up to 50% of those who bought apartments in Hanoi have problems with builders. Progress is slow, or the house is not even built, sold home-style “semi-wild ducks Pebbles”, sold the value of the dollar, the price of capital contribution, while on a price contract, negligence quality, charging a ridiculous price … it’s rare to find a good builders

– Experience in building and managing urban areas were put into operation. Let’s look at the urban areas that changed the face of Hanoi is working to find a reputable investors.

– Original price on the sales contract that is closely to the market price. Do not urge investors to make low-cost apartments.

– Having the financial resources and ability to build good, companies and enterprises directly under construction. These corporations when they encounter waves of internal resources by using the services of internal corporate conglomerate, materials, design .

– Owner direct sales, less mediated, into the hands of customers through their own exchanges.

Many apartments are beautiful design and internal infrastructure area looks great, but to go to work and children to school is both a huge problem even if you have a car. Imagine a year to spend 700 hours to go on the road and wait in traffic, plus the cost of gasoline and health loss … like a few decades, the cost of paying the amount not less than figure billions.

Please set out the following questions about infrastructure and marked points, if 70% is required you may have to find an apartment like that.

– Location relative to the region and its capital Hanoi how? Future development? Convenient transport to go to work, go to school for the majority of non-family members back?

– Infrastructure essential for ensuring daily life: electricity, roads, schools and health services, clean water, markets, hospitals, parks, restaurants, public services … are fully and smoothly?

– Environmental Infrastructure: near a river, lake water, away from industrial areas, service areas, quiet atmosphere, clean environment, many trees, with lakes, there are not many public spaces?

– Human Infrastructure: community citizens civilization, uniform culture and lifestyle or near residential complex, not dens evils?

There are many factors that we can learn through the network, through maps, through the brokerage office, the media, or from trusted friends … but there are factors that you have to see in person on the ground. The most effective way is for you take the time to sit at sidewalk stalls or meet one of the few people who are living in urban areas.