9 Documents Needed For Your Tenant/Buyer
September 4th, 2008 by Jason Hanson | 3 Comments | Filed in Real Estate Investing, Starting Out
So I see one of my friends that I haven’t seen in a while when I was in Florida, and she tells me I look disgustingly skinny (basically, she calls me a hideous freak). Well, I tell her that I’m training for a marathon, so I’m sure that has something to do with it. And here’s the other reason: I HATE cooking. I have the worst eating habits. If it’s not in the frozen food section, can’t be cooked in a microwave, or made by my personal chef (Mr. Boyardee), then I don’t eat it. Anyways. About two months ago I’m at Giant staring at the TV dinners and Healthy Choice TV dinners are 50% off (yes, you know where this is going). I pretty much bought out the store and now have a lifetime supply of Healthy Choice meals. The problem is, that these meals have about .003 calories. So over the next few months I will probably wither away and die (how come they couldn’t have Hungry Man dinners on sale….gosh!)
Before I start to look like Nicole Richie back in the day, let me go over the paperwork needed when you have found a tenant/buyer. Here are the 9 necessary docs.
- Property Condition Move-In Form - Walk through the property with the tenants and note any problems, blemishes, etc….
- Renter’s Insurance Form - The tenants have 7 days to fax back the form with proof of renters insurance (I also staple the card to the form of the agent I work with).
- New Tenant Information Form - A welcome letter for your new tenants. This letter should list the names and phone numbers of all utility companies, the day the trash is collected and anything else they need to know about the property.
- Property Maintenance Agreement - This form states that the tenants are responsible for the first $300.00 in repairs and they must also get a home warranty. (I have my tenants use American Home Shield).
- Option Agreement - States that the tenants have a one year option to buy the house at x amount of dollars. And that if they violate the terms of the rental agreement or any other agreements, the option becomes null and void. (This does NOT get recorded at the courthouse. You only record the option agreement between you and the seller).
- Payment Policy - This form only has a few sentences in huge font that state: Your company has a zero tolerance policy for non-payment of rent, that evictions start on the 5th and there are no exceptions. (and that you can murder them for non-payment of rent…..I wish).
- Property Disclaimer Form - This is the same form you signed with the seller. Each state has their own disclaimer/disclosures about the property.
- Lease Option Disclosure - This form says that the tenants understand they have an option to purchase this property. And that you might not be the owner of the property and may only have an interest in the property (this is important….in a sandwich lease option you only control the property and you need to disclose this).
- Rental Agreement - This should be iron clad and cover everything. My current lease is 7 pages. Make sure you have your lawyer review it. (Maybe in another post I’ll go over the key paragraphs of my lease).
Well, this week I’m headed to Florida again. I’m driving down, because I’m going to leave a car there….so I’m looking forward to a good ole’ 12 hour road trip. And in my car will be all of my real estate and marketing CD’s so it can be a productive 12 hours. By the way, right now in my microwave is my Healthy Choice mash potatoes (I think that’s how you spell potatoes, but I’d better ask Dan Quayle) and broccoli meal…..de-lic-ious! Til next week.
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Tags: buyer, lease option, real estate investor, real-estate-deals, tenant


I’m in sunny Florida for the next two weeks on business/pleasure (of course there is always business in there for the tax deductions from our favorite Uncle.)
First, almost everyone loves food. It’s a very polite gesture to show up at a seller’s house with something to give to them. I am always harping about how you need to stand out and be different from your competition. How many other investors out there do you think bring a delicious apple pie to their seller’s house?
The second reason that you need to bring food to the seller is because it will lead you to the kitchen table. When you give someone a gift of food they almost always take it to the kitchen and put it on the counter or the kitchen table. This is exactly what you want to happen. You want to sign the paperwork (remember it’s always called paperwork, never a contract) for the deal at the kitchen table. For many families the kitchen table is a “happy place” where people sit, chat, relax and enjoy each others company–it is their comfort zone. You want the sellers to be relaxed and in a familiar setting when you sign the paperwork. It is also a much easier place to sign everything. If you have ever tried signing paperwork while leaning forward and writing on a coffee table it’s not a comfortable position whatsoever.
Typically, the closing agent (often a representative from the title company), gathers the pertinent information, completes the Settlement Statement and disperses the required funds once the buyer and seller have certified the accuracy of the statement by signing it.
Sheesh! If it isn’t one bad deal working it’s three bad deals working. Are times that bad that you have to reach for a good deal? NO! Are times that bad that you need to cut corners to make the deal favorable? It is never that bad. Have real estate investors forgotten their original high standards? Maybe so. I know one thing though, Investorino has lost its mind this month.
I do believe that it is human nature to celebrate a championship victory as if it were out of character for us. In real estate investing, the championship is EVERY HOME RUN DEAL. Some investors never see a home run but have lots of hits and lots of RBI’s which is fantastic as well. But my concern here is that we get caught up in the hype of the potential profits of deal A without continuing to operate in a normal manner to see that the deals (B,C,D…) due to follow come to fruition. This temporary path off course is very prevalent in the sports world and the principle can really be applied to any industry.

Joshua Dorkin


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