Shownotes:
After renting for many years, the rental market took a turn for the worse and they knew it was time to get out of Dodge (figuratively). With the rise in investors and house flippers, the competition got intense for homes for the middle class, making it difficult for How to Buy a Homie Derek and his wife to find the right home for their budget. This is their story of overcoming the challenges and finally becoming homeowners!
Here are some topics from today’s conversation:
- Buying a home as business owners
- The importance of accounting when self-employed
- The catch of waiving a home inspection
- Doing your research on your realtor
Episode Highlights:
[02:14] Owning a Business and Owning a Home
Derek and his wife were living in Denver when they were notified that the rent would increase significantly. They knew that for the price they were paying in rent, they would be able to pay a mortgage, so they decided to start looking for a home. Both of them own an online business which had allowed them to travel from place to place, but it was time for them to settle down. So, they reached out to David to find a home and several months later they were moving into their new place in Wisconsin. While it seemed impossible for them to buy a home because of their self-employment status, their detailed recording of all their earnings and expenses allowed them to show lenders that they had a reliable enough income to afford a mortgage.
[13:28] A Brutal Market for the Middle Class
Derek’s biggest challenge was the home inspection. His unicorn realtor told him that he would be in a better position to purchase a home because so many folks were waiving inspections. Unfortunately, Derek found that some people were waiving inspections because they were too desperate to get homes, often landing them in homes with big problems. From foundation problems to roof replacements, house issues can be too costly to overlook, especially in the areas where they were looking. Thankfully, his unicorn realtor was kind of a de facto home inspector. His extensive knowledge about homes allowed him to help Derek avoid homes that would provide serious issues later on.
[29:00] Finding the Right Unicorn
They had a great experience with their realtor, Kevin, but when they decided to start looking in Wisconsin, they needed to find another realtor that knew the area. So, they asked a local person for a recommendation, but the realtor they recommended was not at the experience level they needed. This showed Derek and his wife the importance of educating yourself to know what questions to ask realtors to make sure you’re getting someone you can rely on. Although there are millions of realtors in the U.S., a huge number of them are not very experienced, especially for first-time home buyers. Make sure you DO YOUR RESEARCH on your realtor.