Quick overview of a 14 day closing... find my mistakes?

[James De Stefano]

I've bought 3 houses with conventional financing and the traditional 30 days closing from the MLS. Easy enough with the agent, title co, and lending all doing their parts. But as a newbie, the initial process of making a FAST, AGGRESSIVE all cash/ hard money offer to pick up a property is just more intimidating. Could anyone help find any mistakes or missing pieces below ? It would help make it less nerve-racking the 1st time around.

Hypothetical Deal =     160k  ARV  x  0.75 =   120k -   25k repair  =    95k  as a maximum offer  ( Many experienced investors in Texas seems to want a $30k +  profit on rehabs or they won't do it.  I don't have to hit a home run on the first deal, I just need experience + a modest profit) 

5 Steps  ( simplified) 

1. Write up the contract and have seller sign ( standard 1-4 family, TREC form in Tx)

2. Include a letter of intent to fund/ certified funds ( needed?)

3.  Put in a 5 day option period to have professional Home Inspection or GC come through to make sure i'm not investing in a money pit. 

4. Contact Title Co.  immediately to start the process

5. Close within 10 - 14 days

Can anyone point out any major events during the purchase process that I'm leaving out?  I really appreciate it!

- James

[Caleb Heimsoth]

@James Destef. This will be market dependent and maybe you can’t do this if the market is very hot, but I would allow yourself a 7 day inspection period. You can put it in your contract as “5 business days” but really I’d give yourself at least a week. Personally I like inspection clauses of 10 day minimum on the buy side. Obviously on the sell side I like shorter.

Biggest reason for this is scheduling the inspector. My inspector is good at what he does and often takes over a week just to schedule and get him on side.

Maybe in a flips case they isn’t a big deal, but most of what I buy has tenants, and coordinating with them also takes time.