Congratulations! You have a signed contract. Now what?
Dealing with fsbos is a lot easier than dealing with realtors. They don’t ask you for proof of funds and are more likely to listen to creative ideas. Realtors only know if you are going to pay cash or qualify for a loan. That is not my favorite way to buy real estate.
So if you do not have a realtor in the deal, it’s up to you to know what to do in every step of the way. Make sure you have an escrow company that knows how to deal with investors. Do this before you get a deal,
1. Make sure you have:
a. contract signed in trust name with you as trustee
b. CYA (cover your a$$ets) letter
c. authorization form
d. key to property if vacant
e. sign on property
f. no money to seller
g. POF (proof of funds) from hard money lender if paying all cash (know
lender requirements)
2. Contact the escrow company, unless you are going to assign
3. FAX your contract and assignment
4. Order title AND READ IT
5. Order insurance
6. Get financing started
a. fill out 1003
b. credit report
c. find a partner?
7. Re-check comps to make sure you did not make a mistake so you can back out in
allotted time if needed.
8. Do inspection and/or get experienced person out to validate your original suppositions
9. Line up handyman or contractor – work on getting real estimates
10. Have escrow send all docs to you (if no realtor)- you bring all docs to seller
11. Read every word of escrow papers
12. Bug loan officer
13. Bug escrow officer
14. Bug title
15. Bug realtor
16. Make sure you have all loan docs sent to you as far in advance of closing as possible.
READ EVERY WORD!!! If you don’t understand something and are unsure,
unhinge your wallet and spend a few bucks for an attorney.
17. Read inspection report and negotiate with seller
18. Follow up on everything – don’t trust anyone
19. When you are selling using a realtor and dealing with CAR deadlines, make sure you know what they are and what you have to do to comply
20. Prepare trust and trust certification
21. Take closing docs and traveling notary with you and go to seller
22. Get trust, cert of trust, and deed notarized
23. Bug everyone again
24. Check to see if promised repairs have been done
25. Do final walkthrough the day of closing – VERY IMPORTANT-make sure seller is out.
26. Ask for escrow papers and check for errors at closing
27. Get final figures and arrange for certified funds
