Building Wealth One House at a Time

by John W. Schaub

1. Identify a potential bargain purchase; ask questions. 2. Write down the one urgent problem you can solve for the seller. 3. Establish the fair market value, give or take 5 percent. 4. Research the market rent and likely net income the property will produce. 5. State your minimum acceptable profit on this house. 6. Formulate an offer that solves the seller’s one urgent problem. 7. Make the offer. Insist on either an acceptance or a counteroffer. (Remember: Don’t tell me what you won’t do; tell me what you will do.) 8. Make another offer based on any new information. 9. If the seller is unresponsive but you remain convinced there is opportunity, go away and come back in a week with another offer. 10. Get the contract accepted and signed by all parties. 11. Make your earnest money deposit with the closing agent. 12. Retain rights to use a house inspector and termite inspector, if needed. 13. Order a title search with a title company, attorney, or escrow company, and furnish these agents with a copy of your fully signed contract. 14. Talk with the agent or attorney who will prepare the closing documents to alert him or her to any unusual clauses in the contract. 15. Get copies of any documents you will be required to sign the day before the closing, and get a copy of the title insurance commitment—read them to check for exceptions. 16. Read closing documents (very carefully!). 17. Walk through the house the day of the closin...