Step #3... The Buying Process

After all of this learning you need a beer. Maybe wine...Maybe the whole bottle. (I won't judge)... You're excited, and rightfully so because life is changing for the better. You have taken the time to read this blog and by now you have reached out and started building your "Power Team".

You have your cash, IRA, or lender all lined up. You have taken the time to reach out to me. You have gotten referrals to property managers, and had all of the conversations needed to put the right people in place for you to win... Right? 

Well... if not, we need to get you there. If you have...Let's get into what happens next.

Depending on what you are looking to buy, we will identify areas in which you will be targeting potential investments. Most of the time I prefer to let you skip the work on that and I provide deals to you directly each day via email that I personally look at and determine them to be worth considering. I send out both on and off market deals as I see them. I will give you all of the info you need such as , address, current sale price, market value, ARV, current rent, market rent, potential repairs needed, as well as the supporting comparables to back it up. Then at a glance you can determine if the property is something that you'd like to look at furthur. Or you can go out into the market and try to identify your own. Then we would work together to figure out all of the same information I would send you directly.

You see, the key to winning with this business is knowing all you can know before you buy. We don't just take chances and hope for the best. WE make a plan.. and WE go after it, together. Once you have gotten to the point where you can vet a deal on your own, then you can go out there and slay the dragons on your own. As many as you like...Wherever you so choose. 

My goal is to make sure that we have built a bond together that you want to keep doing this with myself involved long term. I provide value. Value is appreciated...

Regardless of the situation. We go out and look at any property, get videos, and figure out if the deal is really worth looking at more seriously. If you are buying from outside of the area. I will do this for you myself. I take videos that showcase everything you want to know about. I narrate on the video everything I can see about the property. I look at the roof, windows, interior condition, HVAC, plumbing, foundation, sewer etc. I do this so we don't waste money sending a home inspector and then realizing the house is junk. Inspectors will charge you money. So, we don't want to pay money to inspect a house that's not worth our time. This will save you thousands of dollars as an investor in the long run. Most agents don't do this for their clients. Even if they did...Most have no idea what to even look for anyway. Take my word for it...You need us involved.

Look... Once we find a house that you want to offer on, the process is fairly easy. We prepare a purchase agreement with all of the terms in writing and send it to you in docusign to sign electronically. We take the signed agreement including your proof of funds and present it to the listing agents. Or the seller directly. If all parties are in agreement the seller will then sign, counter your offer, or reject the offer. If the offer is accepted the offer would then be signed by the seller. Then it comes back to you to sign one more time. We call this the "Bottom line". Then we are officially "Under contract". During this time we move on the the next step.

After the contract is mutually agreed and signed. We would move into the inspection contingency. Usually, we will negotiate 7-10 days for the purpose of physical inspection. During this time, we will help you identify a home inspector to inspect the property more closely and generate a detailed report of the property condition.

If the house is rented. We gather all of the documents prior to physical inspection. Documents such as current leases, rent payment ledgers, tenant applications, section 8 paperwork, HAP contracts, proof of city certifications, and anything else we can get. Once that all checks out...We send the inspector. If those things don't check out...We walk away.

By the time we do all of this work you will know as much as you possibly can about the house. We will have provided you with literally all of the information that is available. Then you can choose to move forward with confidence...Or we can choose to kill the deal and walk away. We always negotiate that the Earnest Money Deposit only be deposited after a satisfied inspection. This way we don't have to put any money down until we know we want to close the deal.

(Unless they negotiate otherwise)

After we complete this process, we move on to the actual closing process with a title company. I will cover that in the next blog post...So stay tuned for more life changing education and advice. I know you have to have finished that whole 6 pack of beer or bottle of wine by now so let's revisit after you have some time to enjoy that a little bit.

Listen to me when I say this...Most of my investors buy and sell through me for years because I have their best interests before my own. I want you to win. I will tell you not to buy more houses than I would suggest that you buy. You can hold me to that. It will never change. I am going to tell you my opinion. Even if I know you don't like it. If I feel strongly about it...That's what I will give you. 

I don't know how to operate any other way... 

Feel free to drop your questions or topics. I would like to hear your thoughts and questions

Let's win...Together!