Do NOT miss these points when buying an investment property
Pre-approval of funds. First things first: you can’t buy a property if the bank won’t lend you money. Without financing, there’s no point in making that first phone call or viewing that first property. You will waste your time, but more importantly, you will waste your team’s time. Since most of your team works on commission, hitting this roadblock three weeks into the property search will equate to their wasted time after they’ve invested all those hours with you.
Additional documentation. After you have removed condition, your lender will require another set (third) of documentation from you in order to give their final approval of the deal. Don’t get angry with your mortgage broker; they’re just doing their jobs when they ask you for a third batch of financial records. Be prepared for it and dig up all the required documents ASAP.
Schedule renovation. Since you’re not buying a new property, you’ll need to complete some form of renovations before your unit is rent-ready. Make sure that from the first day you start paying the mortgage, your renovation crew is ready to execute their plan so that you minimize your days without revenue.
Delivery of real estate instructions. Consult with your lawyer and Realtor to confirm receipt of the documents on time. Always treat any investment purchase as a full-scale project. This means having in place a project plan, timeline, team members, and identified risks and issues.