• Mortgage Broker/Lender
• Real Estate Agent/Property Locator
• Appraiser Contractors
• Building Inspectors
• Insurance Agent
• Closing Attorneys

By surrounding yourself with the right team members, there is no limit to what you can do. The beautiful thing is that you can assemble your team from the A2Z Business Association. Once you have improved your overall knowledge level and assembled your team, it is time to get started.

From our experience, most lenders can get you 100% financed anywhere between a score of 580 or higher. Any score less than that, the lender will require a larger down payment, and the LTV (loan to value) will probably be financed at 85% to 95%. If your credit score is less than 580, you will have to become more creative with your financing, but do not give up on your quest to become an investor.

There are Credit Repair Specialists to help you begin to correct and/or fix your credit. Visit A2Z real estate depot for some reputable credit repair specialists. You will see that credit does matter and your goal should be to have a credit score as high as possible. If you cannot wait on your credit, possibly a good friend or family member can help you get started.

Here are a few credit tips:

• Pull your credit for accuracy.
• Do not allow anyone to pull your credit without your consent. Too many credit inquiries will bring your score down
• Paying your bills on time is very important.
• Eliminate credit card debt. Get your DTI (debt to income ratio) down.

• Price
• Closing Costs
• Prepaid Items
  • Refrigerator
  • Stove
  • Curtains
  • Washer and Dryer
  • Fixtures
• Amount of Earnest Money (held at Closing Attorney's Office)

1. Try to get the seller to disclose what they will accept for the property before you make an offer.
2. Do not be afraid of your offer. The worst they can say is "No". Everyone is trying to protect their interests. Don't take it personal.
3. Silence is golden. Don't speak too much. If you show that you are too eager, in some cases you will not get what you want.
4. Don't rush negotiations, if the seller is motivated, they will come back to you (counter offer) Very Important!!!! If the deal is a bona fide good deal, do what you have to do to get it done. Do not play around with a deal made in heaven. Why risk several thousand for a few hundred.
   
   
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   Securing a Deal
   
   Signing a contract on the property after the negotiations are complete is your next step. Read over the contract with a fine toothed comb make certain that the contract states who pays what in closing costs.
   
   A2Z Real-Estate Depot provides contracts for the purchase of real estate.
   
   Here are a few key things to remember:
   • Make sure all information is correct. For example, spellings of names, valid signatures, price of property/ properties, date of scheduled closing, etc. The contract is a binding document once all parties agree and sign.
   • Make sure your contract stipulates 3 to 5 days for right of inspection. This can also serve as a way out. This practice is often referred to as a "Weasel Clause" in the arena of investing.
   
   
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   Inspections
   
   When purchasing investment property how well do you know what you are about to purchase? How old is the plumbing? How old is the roof? Are there any foundation problems? To ease your mind about these questions and many others, A2Z Real Estate Depot strongly suggests getting a home inspection. This could be the wisest $300.00 spent. This is an expense that you as the buyer will incur, but the peace of mind of knowing what you are about to get into could save you thousands of dollars and hours of headaches. A2Z Real Estate Depot suggests using its list of A2Z home inspectors from our website.
   
   
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   Appraisal
   
   A certified appraisal must be performed each time you purchase a home. The cost to appraise a single family home usually runs about three hundred dollars. This, like a home inspection, is a cost that you as the buyer will incur. Unlike an inspection, which is optional, an appraisal is required by the lender. When dealing with an appraiser there are few things of which you must be aware.
   
   Your appraiser must be approved and not on a Blacklist. A good appraiser should be willing to convey to you the estimated value of the property prior to actually performing the appraisal, saving you time and money. Although nothing is guaranteed, a full appraisal must be done to get the true value. Even at this, the lender ultimately makes the decision if they will accept the value on the appraisal. Generally, a desk or field review is performed to ensure the value from the lenders perspective.
   
   Make sure you get a copy of your appraisal for your records.
   
   A2Z Real-Estate Depot suggests using one of the Appraisers from our website.
   
   
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   Loan Process
   
   A2Z recommends that you spend some time learning about the loan process. This is very important because the loan process dictates whether or not you will make the purchase. This is truly the most pivotal part of the process. When shopping for a loan:
   1. Think about how long you plan to keep the loan - If you plan to sell the house in a few years you may want to consider an adjustable or balloon loan. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed loans.
   2. Understand the relationship between rates and points - Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan.
   3. Compare different programs - Selecting a lender and shopping for a loan can be difficult. With so many lenders and programs to choose from, each of which have different rates, points and fees, it's hard to figure out which program is best for you. That's where an experienced loan officer can help you make a decision that's best for you.
   Obtain Loan Approval
   
   Steps of Loan approval
   
   
   1. Credit history verification
   2. Employment history verification
   3. Assets including your bank accounts, stocks, mutual fund and retirement accounts
   4. Property appraisal evaluation
   5. Verification of rental or mortgage
   Based on your specific situation, additional documents or verifications may be required. To improve your chances of getting a loan approval:
   • Fill out the loan application completely.
   • Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
   • Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed. Anything that causes your debts to increase might have an adverse affect on your current application.
   • Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
   • Do not go out of town around the closing date. If you plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
   If you are Buying or Refinancing a Home:
   
   
5. If you are a salaried employee you will need to provide two years W-2 and one month of pay stubs OR if you are self-employed you will need to provide 2 years of tax returns and a YTD profit and loss statement.
6. If you own rental property, you will need to provide rental agreements and 2 years of tax returns. To expedite the approval process, provide three months of bank statements for each bank, stock and mutual fund account.
7. Provide recent copies of any stock brokerage or IRA/401K accounts that you may have. If you are requesting a cash-out refinance, you will need to provide a letter explaining what you plan to do with the proceeds.
8. Provide a copy of divorce decree if applicable.
9. If you are NOT a US citizen, you will need your green card (front & back), or if you are NOT a permanent resident provide us with your H-1 or L-1 visa.
   
   If you are Applying for a Home Equity Loan:
   
   
10. If you are salaried employee provide two years of W-2 and one month of pay stubs OR if you are self-employed provide two years of tax returns and a YTD profit and loss statement.
11. If you own rental property, you will need to provide rental agreements and two years of tax returns.
12. You will also need to provide a copy of the note on your first mortgage. This will normally be found in your closing loan documents.
13. Provide a signed letter explaining what you plan to do with the proceeds.
14. Provide a copy of divorce decree if applicable.
15. If you are NOT a US citizen, You will need your green card (front & back), or if you are NOT a permanent resident provide us with your H-1 or L-1 visa.
    
    If you are Buying Commercial Property:
    
    
16. Owner Information Previous 2 years and year to date Income and Expense statement, or income tax statement for previous 2 years are required.
17. Rent Roll (multi-family) or Lease Summary (commercial) including square footage of units.
18. Copies of leases (if commercial) Rental Agreements (if multi-family)
19. Property description including age, construction type, square footage, amenities. Location Map (from a Thomas Guide).
20. Color Photos: (a) Front/ Rear of subject property / (b) Street scene / (c) Neighborhood.
    
    Borrower Information Current Financial statement of borrowing entity and each principal.
    
    
21. Profit & Loss statement if owner/ user.
22. Use of loan proceeds.
23. Original purchase information (if refinance).
24. Previous 2 years tax returns (if available).
25. Copy of purchase contract (if purchase).
26. Credit Authorization / Current credit report.
27. Broker Fee Agreement with Borrower / Borrowing entity.
    
    Closing Process
    
    The closing process is pretty standard once your loan has been approved by the lender and all stipulations have been satisfied by your loan officer. A closing package is sent to a closing attorney where they will go over a Settlement Statement, know as a HUD Statement. At this time you will sign all closing documents that will make you the new owner of the property. There are several things needed from the buyer and seller, these are listed below. The seller must provide the following:
    • Payoff of all loans owed on the property must come in the form of documentation from the lender, verbal verifications are not accepted
    • Termite Clearance Letter stating the property is free of termites
    • Government issued id such as driver's license, passport…..
    • Typically the keys to the property
    The buyer must provide the following:
    • Certified funds for closing cost must be paid on the buyer's behalf. Cashiers' checks should be made payable to yourself(to be endorsed at closing).
    Government issued id such as driver's license, passport…..
    The Final Steps:
    • After all documents have been signed, the HUD Statement must be approved by the lender. Once the statements have been approved, all proceeds can be disbursed. The deed is then recorded making you the new owner of the property.
    • The closing attorney will record the warranty deed.
    A2Z Real-estate Depot is proud to present a list of closing attorneys for you to choose from.
    
    
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    Contractors
    
    As an investor, how will you renovate the property you have just purchased? Will you use a General Contractor or various contractors? How much will it cost to get the project done? Well, let's analyze the difference between using a general contractor and a sub-contractor.
    
    General Contractor is one who can manage an entire project. Typically they will sub the work out to sub-contractors. However they are responsible for the entire project. The advantage here is you have a qualified person to hold your hand through the process. This is not a bad idea upon getting started. The down side to a general contractor the price can be higher. However, time is money so it is worth having an experienced person over your project that can get the job done faster than you trying to get the job done by yourself.
    
    The other side of this is contracting the work out to individual sub-contractors. This makes you totally responsible for getting task complete. It is up to you to schedule your sub-contractors to work on your project. You can typically save money by contracting it out yourself.
    
    Whether you contract the work yourself or use a general contractor we suggest using the A2Z Real-Estate Depot Rehab Calculator to help estimate the cost.
    
    
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    Exit strategy
    
    A good investor will ensure his/her exit strategy. An exit strategy simply outlines your plans for the property. Be it rental, rehab, or resale.
    
    Advantages and disadvantages to consider: Renting Advantages:
    • Possible positive cash flow
    • Renter making mortgage payments while your property equity grows
    • Tax Write offs
    Disadvantages:
    • Possible negative cash flow
    • Land Lord responsibilities
      • All repairs to properties
      • Land lord/Tenant relationships
    Selling Advantages:
    • Release of Liability
    • Proceeds from Sale
    Disadvantages:
    • Responsibility of making monthly payments until sold
    • Capital Gain Taxes
    • Property remains your responsibility until sold (insurance, vandalism, protection, etc…)
    Lease purchase is another option. It marries both sides of renting and buying. This is a good option because typically the people that lease purchase are serious about buying a home and are going to be more apt to maintain the property with the anticipation the property will soon be theirs.
    
    Always remember that you must have an exit strategy. A2Z Real-Estate Depot offers a database of potential buyers and renters.
    
    You have been armed with enough information to get started. In this business you will constantly learn new ways of doing business. To further your real estate knowledge and to reduce the learning curve, A2Z Real Estate Depot offers the following A2Z Real Estate Seminars
    
    
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    A2Z Real-Estate Depot also sponsors seminars and boot camps for the serious investor looking to get on the fast track to making money. Please inquire by clicking here.