Locating and purchasing income properties is a bit different from purchasing a single family residence intended to be your home.

• The purchase contracts and escrow instructions are substantially different.
• A large portion of income properties are listed on databases or listing services that do not list single family homes.
• The processes for obtaining income property are different.
• IRC 1031 exchanges are fairly common.

The steps to acquire income properties are generally as follows:

1. Talk to a mortgage broker or lender to determine how much you can borrow and obtain written prequalification.
2. Meet with your agent (we strongly recommend you select an agent specialized and experienced in residential income property transactions), to obtain information on how and where to locate potential purchases.
3. Obtain an accepted offer on a suitable property.
4. Once your offer has been accepted, schedule and perform a walk-through accompanied by your agent.
5. Schedule the physical inspection.
6. Once in escrow, the Seller will supply a number of documents (which your agent will help explain) to assist you in completing your due diligence such as;
   • Estoppel Certificates.
   • Rent Rolls.
   • Income and Expense Statements
   • History of Insurance Claims
   • Other documents, reports and disclosures.
7. Following review and acceptance of the above, escrow generally proceeds to closure without any difficulties as long as both Buyer and Seller comport themselves in a business-like manner.

Related Information:
Frequently Asked Questions
Glossary