The Flipping Blueprint by Luke Weber

Author:Luke Weber [Weber, Luke]
Language: eng
Format: epub
Publisher: BookBaby
Published: 2017-01-05T20:12:01+00:00

Prior to closing on your property, there are going to be some important items you will want to make sure happen. The title/escrow company and the realtors involved will all be babysitting the deal to make sure it closes and everything goes smoothly. Remember, the realtors and the title/escrow company only get paid when the property closes; they have a vested interest in this deal. You, however, will need to be in contact with your money person, whether it be a hard money lender or a private investor, during the closing process. If you are getting a hard money loan, the HML will request the contact information for the title/escrow company so they can make sure all of their paperwork is set. If you are dealing with a private investor, you will be handling your own paperwork. I typically have my private investors wire their funds to the title/escrow company one day before closing just to be safe. Prior to closing the deal, you will also want to pick which contractor you are going to use and find out when he or she can get started. Ideally, your contractor can get started the day after closing. Remember, the longer you have the property, the less money you are going to make. You want your projects to move. For the contractor to get started, he or she will typically need the utilities turned on. After I have made the decision that I am purchasing the property, I will schedule my utilities to be turned on the day after closing. Some utility companies can take 1 or 2 weeks to schedule service. Most realtors will be able to get you the contact information for the local utility companies.

One of the most important preclosing items you will need to do is a final walkthrough. Prior to closing, you or your representative will need to go back to the property and make sure it is in the same condition it was in when you first looked at it. How much can change in a couple weeks? A lot. If it was a vacant property, you may find that the property now has squatters or has been vandalized. If it was a property with occupants, and they were supposed to move out, you may find them still living there. I recently had a property I was supposed to close on a Friday afternoon. That Thursday night the owner was using the barbecue and burned down a portion of the house and the garage. The fire department estimated the damage at $65,000. The garage was a complete loss, the property now needed a new roof, and the exterior was burned and damaged. The house was definitely not in the same condition it was when I agreed to pay for it. In these instances, you typically have three options, but make sure to read your contract to know what your rights are. Option 1: Close on the property and just deal with the problem yourself. I’ll do this if it is a minor item, and I know I won’t get anything from the other side.

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