The Buying Process
I am a new investor who is currently looking for my first property, and before I buy I was hoping someone could explain what to expect when I buy. I mean when the seller and I have an agreement, should I have papers with me to sign right then and there? If so, what documents do I need? (I would be paying cash, and buying outright for rehab). I know the closing is done at the title company, but how and when does it get to that point? Obviously I have much to learn, but that's why I'm here! Any help is greatly appreciated.
Yes, your questions are many so here is the quick response: Typical sales contract from you local real estate agent.
1. Agree on the price
2. Sign the agreement with earnest money (if needed) - have the home professionally inspected
3. Attorney review of signed documents and further guidance
4. Create escrow account with Title Company
5. Closing occurs; you bring certified funds for the balance due. Owner has moved out, transfer of ownership, you own the house.
6. You get the keys
7. Obtain permits for rehab
8. Market the house during rehab
9. Tricky - Some lenders for your future buyer may want to see the title with seasoning from you! The home may not appraise as quickly as you wish. So consider selling the house on a lease option, with a down payment from the tenant/buyer this guarantees title seasoning and maximum appraisal value.
If a few steps were overlooked in this CASH deal, please forgive us, but you get the idea.
Eric & Rosa
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