I NEED HELP!
I am completely lost when it comes to what to do when buying and selling a propety.
Buying:
What do I after I have found someone willing to sell?
What paperwork do i need and who do i need to contact?
Selling:
What do I need to do once I have found a seller?
What paperwork do I need?
Do I need to contact anyone?
What do I do?
Please help! The only thing that is stopping me is these questions.
I have my campaign all ready to go I just don't know what to do with buying and selling
Question: What kind of property are you dealing with? Single Family? Multi Family? Land? Something else? Any property with improvements/buildings will involved some added steps (like inspections, etc) and if financing is involved, it will involve even more steps (like bank approvals, appraisals, etc)... but in terms of the basic questions you have above, it's pretty straightforward.
Buying:
If someone has verbally agreed to sell at a certain price, you can make it official by getting them to sign a purchase agreement (see this blog post).
Once you have this signed, you can give it to a title company and they'll take it from there to get the deal closed.
Selling:
Once you've found a buyer who has verbally agreed to buy at a certain price, you can make it official by getting them to sign a purchase agreement.
Once you have this signed, you can give it to a title company and they'll take it from there to get the deal closed.
@retipsterseth Hey Seth! Thanks for taking the time man very much appreciated.
And I am going to start with residential vacant land?
What you said should still apply to land correct?
And also when should I send the seller a check for their property? Should I wait till after the title company has confirmed everything?
@jaydensdad7317 - yep, if you're dealing with land, that will only simplify matters.
If you're using a title company to close the deal, then they will handle the exchange of funds (you would give a cashier's check to the title co, and they will disperse the money when they have everything from both parties).
If you're closing the deal in-house, there are a few different ways to handle this (and none of them are as easy as giving a check to a title company). Most people will find a mobile notary who can meet with the other party to get their signatures, and notarize them AND give them the cashier's check (so in a way, they're almost acting like a pseudo title company for you, because they'd handling a big portion of facilitating the closing).
You might want to check out this blog post as well.
@retipsterseth hey seth!
Is that document in your first response good for wholesaling if it had a clause added for wholesaling?
If so how would you word it into the contract to make it work for wholesaling?
Also is there somewhere where you explain how to fill out the contract properly and what each line means ?
I am sorry for all the questions I am just very nervous about all the fine details about doing a deal in regards to buying and selling.
@jaydensdad7317 quick update. I found the answer to my question about adding a wholesale clause to that contract on one of the forums.
I'm still unsure as to how to fill out that whole contract properly and what it all means
@jaydensdad7317 If you're feeling unsure on your first deal (I know I was, and have only done 2 so far; 4 total buy/re-sell transactions) you might call around to different closing companies in the area that you're planning to work in. So far, I've done deals in two different states and in both cases I kept calling local title companies and explained/asked:
In my admittedly very limited experience, I found that both title companies I ultimately worked with, in two different states, were perfectly happy to supply documents, and probably would have walked me through filling out the contract if I asked. In both cases, I called probably 3 to 5 different title companies in that area before I chose the one I ultimately worked with, and I made that choice based in part on how receptive they seemed to be to walking a novice through the process.
The other thing that I would say, having been where you are now, very recently, is to just focus on one step at a time, and don't get overwhelmed/paralyzed into non-action by trying to understand all details on 100% of the process before you get started. Focus on getting your list and your mailer out. Then, when someone responds, focus on how you deal with talking with and making an offer to a prospective seller. Then, when you have some kind of verbal or non-binding written agreement on a deal, focus on getting a Purchase and Sale Agreement in place (again, some title companies have offered to provide me with this, if I wanted). Then how do I close a deal in state/location X, etc.
Other than having a good idea of the value, and a general idea how I planned to go about marketing a property for sale, I wouldn't worry too much about what the details of the selling process will be when I'm in the middle of trying to do my first purchase.