Home Buying FAQs

Do I Need a Real Estate Agent

Our agents are committed to working for you and your interests including your home criteria such as cost, neighborhood, schools, home size and amenities, and match it with the Multiple Listing Service (MLS), which lists all of the homes for sale in a particular area. and ensures a successful transaction. Our agents know what other homes in the neighborhood have sold for and can present your offer to the seller in the best possible light, which is so important in this seller’s market environment. Typically, sellers pay us the realtors so there is little or no cost to you as a buyer.

How do I choose a real estate agent to work with?

All our first time home buyers are entitled to free services from our dedicated real estate agents. Our full time agents have over 10 years experience with perfomance history of closing over a 100 transactions annually

How much should I offer the sellers?

As a home buyer you are the only one who can determine how much you should offer a seller. Certainly it is suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person with the sole decision to make an offer.

What is an earnest money deposit?

An earnest money deposit is also frequently referred to as a good faith deposit. When a buyer purchases a home, they provide the seller’s real estate company a deposit to hold in their escrow account. The primary purpose of this deposit is to show a seller you are serious about purchasing their home. The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table. In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.

How long before a seller respond to my offer?

There is not a standard answer to this question. A purchase offer will have a “life.” The “life of the offer” can vary from 12 hours to 3 or 4 days. There are many circumstances that can effect the length of the “life of the offer.” At Pareto we know how long of a “life” to give to your offer. If you’re looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended. If the home you’re looking to purchase has been on the market for 3 months and the seller is located out of town, a 3 day “life” maybe necessary and/or recommended

What if my offer is rejected?

When a purchase offer is submitted to a seller there are generally four possible responses. The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to. If your offer is rejected, meaning the seller says no and doesn’t counter, you have the right to place another offer. It’s not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.

Do I have the option to have any inspections?

When buying a home, you have the option to perform several types of inspections. The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections. In most cases, it’s recommended that when buying a home, you at the bare minimum have a home inspection.

Is there a difference between an appraisal and an inspection?

Yes. A home inspector is usually confused with a real estate appraiser. A home inspector determines the condition of a structure, whereas an appraiser determines the value of a property. You will most likely need both when buying your first home, and you’ll be paying for both as well.

How long does it take to buy a house?

After you finally find a home you want to buy and your offer is accepted, it can typically take 20 – 40 days to close on your loan. When you find a home you like, it will take probably another 1-2 months to close.

Do I have to have a down payment and if so how much?

It depends on the type of loan. Some loans, such as Rural Development and VA, require no down payment. Others require as little as 3% down. Many people have the misconception that they need to have 20% down, but there are plenty of options available where a much smaller down payment is required. There are also several down payment assistance programs that you may qualify for.

What Are the Up-Front Costs?

You are responsible for two upfront costs when you buy a home. First there is earnest money, which is a small deposit that lets the seller know you’re serious about buying the home. Earnest money can be anywhere from $500 to $2,000. The second is the down payment, which is a percentage of the cost of the home. Lenders have different requirements for down payments. Traditional lenders usually seek a down payment of at least 10 percent. Lenders backed by the government can seek less, if you qualify.

What will my house payment be?

Your house payment will consist of principal and interest (the amount needed to pay back the amount borrowed over the term of the loan), property taxes, homeowner’s insurance and, in some cases, mortgage insurance. Those vary in each specific scenario, so everyone’s payment will be a little bit different. Our loan officers will help give you an estimate of what your payment might look like for a specific home loan.

Should I talk with a bank before looking at homes?

Absolutely! Getting pre-qualified puts you in a better position when making an offer on a house you want to buy. It also prevents you from looking at what you consider your dream home only to find out it is out of your price range.

Should I take a Home Buying Education Class?

Yes! Homebuyer Education classes are beneficial, especially for first-time homebuyers. Even if it is not a requirement for your loan program, this kind of education will be invaluable over the life of your loan. The class teaches you about the loan process, the additional costs of owning a home, etc. Sing up for our free webinars.

Do I need to be prequalified to buy a home with Pareto?

Yes. You need to be prequalified to purchase a home if you are not a cash buyer. If you have not yet arranged for financing, we encourage you to work directly with our lender or any lender of your choice.


Where is Pareto Realty currently buying homes?

We currently buy homes in over 26 countries: | United Kingdom | United States | UAE | Maldives | Uruguay | Vietnam | Malaysia | Mexico | Morocco| Pakistan | Poland | Qatar | South Korea | Russia | Saudi Arabia | Sweden | South Africa | Spain | Switzerland| Thailand | Tunisia | Turkey | Uganda | Ukraine| Venezuela

What types of properties can I list with Pareto Realty?

Single Family Residential Homes, Condos, Townhomes, Fix and Flips, Commercial Properties, Mobile Homes, Rentals, Homes with a value of no more than $0 - $15,000,000 (depending upon market), Homes on lot sizes no greater than three acre.

Can I still sell with Pareto realty if my home is already listed with an agent?

Yes, even though you don’t need an agent to sell your home on Pareto realty, if you’re already working with an agent or your home is currently listed, we will work with you and your agent.

Can home improvement affect my home offer?

Improvements (or renovations) to your home are an important factor in how we determine the value of your home and how it will be priced, so it is important you tell us about them in your offer request.

How fast will I receive my offer?

Pareto Realty typically provides you with an offer within 7days after you submit your request. This refers to well detailed offers.

Should I provide photos?

Yes! Photos with details helps us to evaluate every property carefully. It gives us a better understanding of your home condition, features and overall value.

Will I still receive an offer without submitting photos?

Yes, photos are usually optional. However, there are some cases where photos are required. Reasons we might require photos can include age of home, lack of comparable properties, or because we don’t feel that we can get a true idea of your home value without photos. If we determine that photos are required, you’ll receive an email from our team.

Can my offer expire?

Yes. Home values will often change based upon market activity, competition and other factors. Our offers will usually expire within seven days from the date of the offer. However, we can still provide you with an updated offer. Please be aware that our renewed offer price may remain same, higher or lower than the original offer depending upon current market conditions. In rare instances, we may be unable to renew an offer.

How long does the selling process take?

We can close in within 15days and a maximum of 80days. You also have the freedom to chose your closing date.

Which other transaction costs should I consider?

As a Seller you are responsible for certain closing costs, just like any traditional sale. These fees may include title insurance, escrow fees, HOA transfers fees, taxes, document transfers and other customary fees. These fees differ based on market and can range from 1% to 3% of purchase price. Our team is always willing to help you work with the title company or attorney’s office handling the transaction to get an estimate of your net proceeds.

How is the offer price for my home determined?

Your home is carefully evaluated by a team of real estate experts who specialize in your market. We are able to provide sellers with data-driven and competitive offers from buyers.

How do I accept an offer?

You officially accept our offer by signing the purchase agreement. Once a buyer and you the seller sign the agreement, you are officially under contract.

How do I sign the purchase agreement?

We make it easy to sign your documents online using electronic signature providers.

Is my information secure?

Pareto Realty does not collect or store any sensitive information. The security of your information throughout the entire process is part of our promise of a better experience with us. For more information, please view our privacy policy. Pareto Realty provides our customers with the convenience of signing documents electronically with two of the leading electronic signature providers, DocuSign and HelloSign.


Why should I Invest in Cash Flow Real Estate?

Investing in our cash flow properties is a great addition to your portfolio, some of the benefits include:

  • Properties selected with high valuable assets. Like real estate assets there will always be value in the land and home.
  • Property investments offer better returns than the stock market, and not as much volatility. Real estate market may go up and down, but your rental income will not see the same swings as the market itself. Properties provide rental income monthly that can supplement your retirement income, or even provide financial independence.
  • Over time, your real estate investment will appreciate in value. History has shown us that the longer you hold your properties, the more money you will make. Even when you take into consideration the dips in housing value, real estate has proven to be a great long-term investment.
  • Owning investments in real estate has many tax benefits.

Our property investments selection criteria:

We invest in vibrant, working class neighborhoods with strong rental demand. In these communities, most people rent and so there will always be a demand for nice rentals.

We acquire properties at discount to ensure positive cash flow, even after all monthly expenses have been paid. Return on investment must be strong. We want these properties to add to your long-term net worth.

What are the advantages of Pareto Real Estate Investment Crowdfunding?

Our Crowdfunding platform is simply the pooling of funds from multiple investors for a common investment and goal.

The advantages include:

✓Low investment minimum of $5,000

✓Greater asset class diversification

✓Enables Small Investors to “Play in the Big Leagues”

✓Better high value deals

✓Purchase larger & higher quality properties

✓Professional management

✓Economy of scale; Blanket contracts

✓Easier to get into outside markets

✓Does not require day to day management or oversight from investors

✓Risk is limited to original investment

✓We have the expertise to deal with complex issues

Do I pay taxes on the distributions?

Taxes are applicable only on the net income after all expenses and depreciation. ​

What if something happens to the economy and the property doesn’t sell as planned?
The future is hard to predict. We track five economists who predicted the 2007/8 crash accurately. We only invest in asset classes that have in our opinion lower than average risks based on the last recession. If an asset drops in value, we feel that our investments will fare better than most other investments that one might consider.

How would a housing market crash affect my investment?

The future is hard to predict. We track five economists who predicted the 2007/8 crash accurately. We only invest in asset classes that have in our opinion lower than average risks based on the last recession. If an asset drops in value, we feel that our investments will fare better than most other investments that one might consider.

Do you typically charge an asset management fee?

We offer zero management fee.

Am I allowed to purchase real estate assets using my IRA?

The answer is yes! The Employee Retirement Income Security Act (ERISA) of 1974 passed the responsibility of retirement saving from the employer to the employee. Created in 1975, IRAs provide individuals a chance to direct where their retirement funds are invested.

Can I Use My 401(K) Funds With My Current Employer To Purchase Assets?

Yes, If your company has a self-directed 401K you may have the ability to self-direct your 401(k) into real estate investments.

What other funds can I use to open a self-directed account?

Most employer-sponsored plans, like 401(k) do not let you roll your account into a new vehicle while you are still employed. Some employers, however, do allow you to roll a portion of your funds. To be certain, contact your current 401(k) provider.

What if I don’t have enough money in my IRA to invest in Real Estate?

You may partner with yourself or others; you make allowable contributions; you may obtain debt financing through private sources or financial institutions on a non-recourse basis; You may arrange a seller carry back loan; you may sell other assets in your IRA to raise cash to make the purchase; you may transfer funds from other IRAs or rollover funds from qualified plans, such as 401(k), 403(b) or government 457 plans you may have had at employers where you no longer work.

Does Pareto Realty charge a fee to investors?

Investors do not pay a fee to register with Pareto Realty or to search our database of available investment properties.

Does Pareto Realty own the property or the investor?

Investors owns the property. ​

Is my data secure on Pareto Realty website?

At Pareto Realty we use a combination of firewall barriers, encryption techniques and authentication procedures, among others, to maintain the security of your online session and all Pareto Realty accounts and systems from unauthorized access. When you register with us we transmit your buy /sell / manage transaction data securely and our servers are in a secure facility. Access requires multiple levels of authentication. Our databases are protected from general employee access both physically and logically. All backup data are encrypted. ​

What's the advantage of real estate investment over the stock market?
Real estate is an alternate asset class that does not have a correlation to the stock market. The stock market tends to react to many real-time triggers such as Fed’s comments or the latest unemployment reports or emerging market slowdowns. In addition, automated trading machines make it difficult for the real investor to time market entry and exits. Our clients invest in real estate to diversify from the stock market and balance their risk so that they don’t have all their eggs in one basket.

Are these investments risky?

As with all investments, there is some inherent risk. The major risk elements are vacancy, maintenance expenses and trying to sell in a down real estate market. In general, real estate has less volatility than the stock market.

Will my property appreciate?

It is always difficult to predict the future. We use a proprietary forecasting model that looks at employment, historical appreciation, new construction starts and a number of other factors that are neighborhood specific to come up with a Home Appreciation Forecast on all listed properties. In general, higher appreciation properties will be ‘growth’ oriented with lower cash flow while higher yield ‘income’ properties tend to have lower appreciation.

How does Pareto Realty help me select the right investment property?

We first try to understand your financial goals, investment method (IRA, cash, loan etc), risk tolerance and any other preferences that you may have by asking you a few simple questions. We use the answers you provide to create a personalized investment portfolio that fits your needs using our proprietary real estate investment algorithms. Our Solutions Specialists then work with you every step of the way to select final properties. We deliver a hands-free investment experience for our investors.

How should I think about income or cash flow vs growth?

The best income opportunities arise when rents on a house are high compared to its purchase price. For example, a $130,000 house in Florida may rent for $1,500 per month, and a $750,000 house in Ohio may rent for $3,000 a month. Therefore, an investor looking for cash flow would do better by buying $750,000 (or less) of properties in Florida if she has the budget. Cash flow neighborhoods also tend to have a lower quantum of investment. A growth investor may find the Ohio property more attractive as there has been historically good appreciation in the area compared to Atlanta, which should continue if current fundamentals hold.

What happens if the tenant leaves?

The property manager will refresh the property so that it is in ideal condition for showing and market the property to get another tenant. Damages are offset from tenant’s deposit. The property manger will charge a leasing fee to secure a new tenant. ​

Who manages the property?

Pareto Realty has qualified property management partners in each of the locations where properties are displayed for potential investment. Selected property managers have to demonstrate process, scale and a history of performance in that given location.


Can I Afford a Mortgage?

You can afford a home If your total monthly housing payment is no more than 28 percent of your gross monthly income, and that your total monthly debt payments are no more than 36 percent of your total gross monthly income.

What loan program is my best option?

How do I choose? Mortgages are not one size fits all. We offer a lot of complex loan options and will help you determine the one that best fits your situation while choosing the right mortgage.

How Do I Apply?

As a homebuyer you should be prepared to turn in some documentations when applying for a mortgage loan and Pareto Realty recommends you gather all the required documents beforehand. You’ll need personal information, such as Social Security numbers and photo IDs. You must have proof you can afford the home, including bank statements for the past six months, a month’s worth of pay and documentation of all other financial assets. Other documentations may include current credit accounts, tax statements for the past two years and contact information for someone who will verify your employment.

How Does My Credit Score Fit In?

Your credit score has an influence on whether you’ll be approved for a home loan including the amount of interest you will pay on the loan. At Pareto Realty​ we have redesigned our loan package to suit homebuyers with poor credit scores.

What Happens at Closing?

Closing is when you sign all of the loan and ownership paperwork and take over the home. At closing you will be responsible for taking care of some costs, including title insurance and points to lower the interest rate on your mortgage, along with fees for loan origination, loan applications, appraisals, housing surveys and even your first month of homeowner's insurance. These costs can be up to 8 percent of your purchase price.