How to become a real estate investor-Part 6 of 30- Sales Contract Checklist
May 16th 2008 06:53 pm
Ok, if you have not read my previous post on purchase contracts do so now before continuing.
How to become a real estate investor-Part 5 of 30- Sales Contracts
Becoming a full time real estate investor requires systems, checks and balances.
Here is a checklist that you should use to make sure you are doing things correctly and not leaving anything to chance.
Remember, ask for as much as you can as you can always back down but it is very difficult to renegotiate for more. Here is the list:
make sure the contract has the total purchase price and the terms under which it will be paid.
spell out any type of special financing and make it as clear as can be to avoid confusion later
Remember, get everything in writing. Oral contracts are usually unenforceable
Try to close in the afternoon in order to give you time to do a walk through to make sure everything is there, no damage since you last saw the property
Use “subject to clauses” to give you a way to get out of the deal if it turns out to be nit as good as you first thought: subject to partners approval, subject to final finance approval, etc.
Include as much personal property in the sale as you can
Have a professional check the title, zoning, liens, unpaid taxes, etc.
Have a professional inspection done. Sometimes the cosmetic appearance can fool you.
submit the offer using a corporation and then assign to a land trust at the closing to avoid any personal liability
use your own lawyer or title company for holding escrows and doing the closings
try to use a promissory note when ever possible
use your own contract whenever possible. If you must use the standard one definitely add an addendum containing your escape clauses etc.
have a termite and wood destroying organism inspection. These organisms can destroy places in the home that you cannot see
get all the required signatures on all contracts and initials on all pages of the contract
check for any required state disclosures needed in that particular state
check for a survey if needed. I missed getting a survey early on and assumed that the fenced in area was all mine. It turned out that the owners long time neighbor had allowed him to extend his fence onto his property so he could park his boat and motor home.
get the right to show the home prior to closing and a key if it is vacant
get the seller to pay some or all of your closing costs and put it in writing
add “ and or assigns” after your name on the contract so you can flip the contract to another instead of closing yourself.
Ok, we ARE NOW READY TO GET INTO BUYING FORECLOSURES.
See you next post.
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Links to previous post:
Suggested reading:
The Ultimate Real Estate System-Learn to buy foreclosures and short sales with little to no money down-This system was created by a well known real estate investor and is very inexpensive but is a complete training.
Massive Profits In Foreclosure– Earn $10,000 in 30 days in foreclosure investing
Fix your credit– I personally used this inexpensive service to raise my credit scores 60 points in 3–4 months
Free Nationwide Foreclosure Lists-find foreclosures across the nation
The
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