About The Under Contract To Buy Checklist

Once we have a signed contract with a seller, it is time to really get to work finalizing our due diligence and preparing for closing on the property.

I strongly encourage you to protect your interest in the property by filing an Affidavit and Memorandum of Agreement to protect your interests in the property. This document puts the world on notice that you have an interest in the property and helps prevent sellers from shopping your offer around to other, often less scrupulous real estate investors.

This is also the time to verify all your assumptions about the property: get firm, written bids for repairs, verify your estimate of value with an appraiser, verify your rental estimates with your property manager, verify what you can sell it for with your real estate agent or broker, confirm your ability to get insurance on that property and very your estimate of insurance costs, verify you are able to receive clear title to the property, finalize your plans for financing the property and so on.

This really is the time to make sure everything is exactly as you expected and if it is not, then it is time to have another talk with the seller about what is different than what you expected and how you both will work to make it a true win-win transaction.

Professional real estate investors realize the time to start implementing their exit plan is while it is under contract when they are buying. Do all you can in advance to reduce or eliminate wasted time once you do close on the property.

Until my next post,

James

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