These are the checklists related to Optional.
Many of them are recommended, but some are there merely as placeholders to be comprehensive.
If you have questions about whether you should do them or not, ask your Real Estate Broker or James (if he is your Real Estate Broker).
When you click on the task, you can also see the tags that task is filed under. You can also click on the tag to see other tasks with that tag.
- Read "Nomad on $10 Per Hour"
Read "Nomad on $10 Per Hour" blog post:
Mark this done when complete.
- Complete "Buying Process Overview" checklist
- Class Watch "Buying Process Overview for Nomads" Recording of Live Class
- Read "Benefits of Becoming a Client"
- Complete "First Meeting" checklist
- Review "Benefits of Becoming a Client"
- Sign up for Dropbox
Sign up for Dropbox with "Extended Version History" feature at:
"Extended Version History" keeps copies of old versions of your files longer than just 30 days in case you accidentally delete something and don't realize it right away.
- Setup Dropbox on your computer
Once you've signed up for Dropbox make sure it is installed and working on your computer for saving all your real estate related files.
Here is the recommend folder structure for Nomads to be setup inside Dropbox:
- "REI Folders"
- Folder for each property and LLC/major entity
- Example: "Main St LLC" (one folder for each LLC/major entity)
- Example: "1234 Main Street" (one folder for each property)
- "1. Purchase Docs"
- "YYYY-MM-DD - PROPERTY STREET ADDRESS - FILE DESCRIPTION.pdf"
- Example: "2018-04-21 - 1234 Main St - Buyer Settlement Statement.pdf"
- "1.1 Refinance" (if applicable, but make it now)
- "2. Trust Docs"
- "3. Property Info"
- "4. Mortgage"
- "5. Taxes"
- "6. Insurance"
- "7. HOA"
- "8. Expenses"
- "9. Tenant and Property Mgmt Info"
- Example: "Smith, John and Suzy" (one for each tenant group)
Mark this task complete once you've set up Dropbox and your folder system within Dropbox on your computer.
- Class Watch "Finding Properties for Nomads" Recording of Live Class
- Read "Net Operating Income"
- REAL ESTATE BROKER: Setup Lease-Option Search Page on JamesOrr.com
If you're going to allow your Tenant-Buyer to select any property from the MLS where you'd buy it and then offer it to them on a Lease Option, then setup your search page on JamesOrr.com.
Talk to James to have him show you this and get it set up for you.
Mark this task complete when it is setup or if you decide you're not doing this.
- Customize your Lease-Option Search Page on JamesOrr.com
If you're going to allow your Tenant-Buyer to select any property from the MLS where you'd buy it and then offer it to them on a Lease Option, then after James sets up your search page on JamesOrr.com you will want to customize with your specific investing criteria.
Mark this task complete when you've customized your Lease Option Search Page on JamesOrr.com.
- Setup custom domain name for your Lease-Option Search Page on JamesOrr.com
If you're going to allow your Tenant-Buyer to select any property from the MLS where you'd buy it and then offer it to them on a Lease-Option, then after James sets up your search page on JamesOrr.com you may want to purchase and setup a custom domain name for it.
The custom domain name will allow you to use that domain name on your marketing and have it URL frame the page James set up for you.
Ask James and he can usually get you a domain name and set it up for you for about $10 per year.
Mark this task complete when you've purchased a custom domain and had it set up for your Lease-Option Search Page on JamesOrr.com.
- Class Watch "Nomad 101" Recording of Live Class
- Determine your Title Attorney
If you have questions about your Title Work, you may want to meet with a Title Attorney to have your questions answered in addition to asking the Title Company.
You can ask your Real Estate Broker for a recommendation.
Mark this task complete once you've decided on a Title Attorney to use.
- Consider ARM versus fixed-rate mortgages
In all but a small number of cases, we recommend fixed-rate 30 year mortgages for Nomads.
However, there are two situations we'd consider ARMs.
First, if you're buying the property and are 100% positive you're going to be putting a Tenant-Buyer in the property and you will be out of the property before the mortgage will adjust, then you can consider using an ARM.
Second, if you're buying the property with partners and the only loan you can get with the partnership is an ARM then you can also consider an ARM. However, in this case you probably should be putting a Tenant-Buyer in the property so it probably still falls under the first reason above.
Interest rates for ARMs (Adjustable Rate Mortgages) tend to be a little lower than the interest rates on fixed-rate 30 year mortgages. But the ARM interest rates can adjust over time causing much higher monthly payments and significant negative cash flow after the interest rate adjusts. This adds additional risk that you could have opted not to take on.
Mark this task as complete if you have decided to get fixed-rate mortgage or an ARM.
- Discuss monthly PMI versus up-front PMI with Lender
Often for Nomads it is better to pay a one-time up front PMI (Private Mortgage Insurance) payment instead of monthly PMI on their loans.
This may mean coming to Closing with a little more cash.
Sometimes it means voluntarily raising your interest rate with your Lender to get a credit to pay for some or all of the up-front PMI.
Discuss these two scenarios with your Lender to see which one makes more sense to you.
Mark this task complete once you've discussed this with your Lender and decided which you'll pick.
- Consider buying down interest rate
Talk to your Lender to see if buying down your interest rate makes sense in your specific situation.
Sometimes, especially if you have extra cash and you plan to hold the property for a long time, it makes sense to pay additional points to get a lower interest rate.
Mark this task complete once you've talked to your Lender about these options, analyzed them yourself and decided to buy down your interest rate or not.
- Consider increasing down payment
Sometimes if you have extra cash for down payment it might make sense to increase down payment.
We often consider this as an alternative to to paying up-front PMI or buying down the interest rate. If we're putting less than 20% down, one way to lower our monthly payment is to put more down to get rid of PMI instead of paying the PMI up-front.
Mark this task as complete when you've talked to your Lender about using a larger down payment and decided whether you will or not.
- Determine your Radon Testing Company
Determine who you will use to test for radon once you have a property under contract. Often this is the same person you selected as your Home Inspector.
Ask your Real Estate Broker or Home Inspector for a recommendation.
Mark this task complete once you've decided which Radon Testing Company you'll use.
- Read "Return On Investment"
- Consider volunteering at your local Nomad Investor Club