#022: Discover the Importance of Setting Your Investing Criteria and Creating a Solid Underwriting Checklist
Jessica Barr, private money investor and lender shares her expertise in risk mitigation and keeping your deals safe. We also discuss the importance of understanding and verifying property valuations and appraisals. Jessica even generously offers her underwriting checklist as her way of giving back.
SHOW NOTES
1:18 – Introducing Jessica, her experiences with investing and real estate, and how she and Tom know each other.
2:25 – Jessica’s skill for managing risks and creating criteria for lending.
3:33 – More on Jessica’s background and how she sets up her criteria.
4:59 – The importance and place of underwriting criteria when looking at potential deals; advice for creating an underwriting checklist.
6:38 – The value of having at least a vague criteria rather than no criteria so you are at least thinking through that aspect of the deal.
7:37 – Different broad areas to consider for criteria.
9:25 – How Jessica started with investing.
9:54 – Creating criteria for lending outside of your area.
10:59 – One of the biggest learning curves for Tom and the importance of teams as well as vetting borrowers.
13:02 – Things Jessica wishes she had known when she was getting started in real estate investing; assessing a difference in value that may not be present in an appraisal.
15:55 – Defining a broker price opinion and why it’s valuable.
17:46 – Contextualizing the properties Jessica is using as examples.
18:36 – Another valuable thing Jessica has learned that she wishes she knew earlier and how she would advise others avoid her mistakes.
21:02 – Background on some of the rules governing investors accepting money from other investors.
23:06 – Details on accredited investors.
24:39 – Taking caution to adhere to guidelines as active investors seeking out equity money.
25:44 – Contacting Jessica and her offer to share her checklist.
26:38 – Jessica’s recommended resources: George Antone’s books, going to REIA meetups, and getting advice from people currently doing the work in your area.
Resources and Links Mentioned:
Email Jessica at jessica@goodstewardcapital.com
Contact Tom at tombraegelmann.com
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