What to do next

8 Replies

So If I have done marketing, have found a motivated seller, and have funds in place.  What do I do next?  Find a Realtor? Contact a Title company?  I guess I don't know what the official next step would be.  

If you're working directly with the seller, you'll want to be sure to run comparables then make your offer. You'll need to get a purchase agreement (some folks will have their own to use) and depending on your state you'll want a title company or lawyer to do the title work. 

@Drummer Lambert Sounds as if you are trying to buy. If that is the case you need to contact a title company to perform a title search. Not sure about Arizona, you may need to contact a real estate attorney. Also you need to open an escrow account to deposit any EMD and officially take the property off the market.

Welcome @Drummer Lambert to BP!

Did you have the seller sign a contract? Have them sign and make sure you put down "your name and/or assignee" so that you can either wholesale the deal or take it on yourself.

Then you take it to a title company.

Congratulations!

First step is to get it under control, that means a purchase agreement signed by you and the seller, with the terms and conditions you need. Actually in my early years I just optioned the property for a buck to get it under control and wrote up a purchase agreement later.

You will want to know the condition of the title so I get a title report, not the insurance just the title report if it is not going to be a buy and hold for me. I order this at the same time I open escrow, I generally use title company escrow services, except when they were having trouble with double closes and then in California I used licensed escrow companies who didn't feel compelled to report every detail of the transaction to the lenders who were not really a part of the transaction, and not their client, and were not affected by a A-B dry close, because they got their money wired to them and were fully paid off within minutes of the B-C close. And the B-C lender had a loan secured by a property that they were loaning on in the first place, same terms and conditions and the same borrower.

There are many good and friendly investors in the Phoenix area and I think you will find one willing to share their contract with you. Don't be afraid to call them, they will often become a part of some of your future business deals and your network grows. Call the head of the local REIA as step one.

First step...find a seasoned investor to partner with you on any deal you find. If you don't know the steps to investing, you won't understand contracts, contract law, title issues, negotiations, the closing process, etc...so you need someone to walk with you through the steps and learn from their mistakes instead of reinventing the wheel and learning from your own mistakes. 

Originally posted by @Bob E. :

 What are you trying to do @Drummer Lambert ?

Hi Bob

In answer to your question I guess I am just looking for info.  I am new to the investing side of things.  My background is in remodeling.  I have a small understanding of how everything works.  I feel where I am lost is with the official "stuff" like contracts/title work etc.  That is why I posed that question.  When I manage to find a deal, what next?  Someone had mentioned a mentor and I hear that a lot so that might be my next step.

It was not clear from you post if you were looking to flip this or wholesale it.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.