There are a ton of small tasks that need to be handled correctly when you’re working on getting a deal closed. Having a checklist for you and your team helps with efficiency and will easily show what tasks still need to be done.
From the time you have the assignable contract signed, there are steps that need to be completed to get the deal closed. This list will vary from investor-to-investor and from state-to-state as laws are different. Below we’ve addressed some of the most critical tasks that need to be addressed for an assignment deal.
At the Property:
• Add the lock box to the front door
• Take ‘before’ photos
• Get an estimate on repairs needed
If you’re planning on assigning the property to another investor, you aren’t planning on taking ownership but you still need to get an idea of the cost of repairs for the property. This will allow you to make an accurate offer on the property and you can present the facts to other investors about the estimated spread they could make on the property.
In the Office:
• Add the ‘buy’ date to the calendar
• Save any ‘before’ photos online (Dropbox or similar)
• Send a copy of the contract to the Title Company
• Create a folder for the property
• Decide the price to sell the property for
• Market the property
• Online (including on FlipNerd.com, Craigslist, etc.)
• Email to your cash buyers list
• Share on social media to local investors
Every office is different so this is the main area of the checklist that will vary from investor-to-investor. Depending on how detailed and organized you are, you can probably add another 20 tasks to this list just so every small task is thought of and written down.
Getting the ‘before’ photos saved will be helpful for any marketing you do on the property so it’s good to just knock it out early.
It’s up to you how you set up your folder but you want to make sure you’re keeping EVERYTHING regarding that property in a specific folder. This can be physical or electronic but include everything from the contract to addendums to utility info to photos.
Regarding the price, by now you know the offer price the seller agreed to but now you need to figure out what another investor will pay for it. Different deals will present different spreads for your profit so it’s important to come up with a fair price for the buyer that still leaves you room for profit.
For marketing, if you have a solid cash buyers list, you might be able to easily sell the property by just reaching out to them. If you know a particular cash buyer that would like a property like you have, don’t be afraid to call them up and talk to them about the deal specifically.
Get the word out about the property in whatever way you can. In many areas, there are local real estate investor Facebook groups that you can join and share when you have an investor deal.
After it’s Under Contract to Sell:
• Send contract to the Title Company
• Add contract to your folder for the property
• Collect the Earnest Money and Notify the Title Company
• Confirm Close Date with the Title Company
• Review & Approve HUD-1
Tie up the loose ends and get the deal closed!
Ideally, everything will run smoothly and the house will close without issue and you’ll receive your assignment fee.
In addition, once the property has closed, you should save the HUD-1 and confirm the wire has been sent.
Rinse and repeat!