Investor · Portland, OR · Member since 2017 · 18 posts · 10 votes
Greetings!
I have been fortunate to have an opportunity to buy on off-the-market deal from a friend whom I trust in a win-win scenario. I am perfectly aware of the potential pit-falls of doing a large transaction with a friend but we have already agreed upon a price, which is contingent on keeping additional costs minimal, including no agents, an arrangement I am comfortable with. I do intend to have an inspection done and bring this back to the seller for conversation.
I have never purchased property without an agent. I've read a few different blogs on other sites about this but, honestly trust this website/community more than anywhere else. Is there a separate thread anyone can point me to laying out the process?
Investor · Newberg, OR · Member since 2012 · 161 posts · 82 votes
8y
Christopher, Do you have a sales agreement yet? The first thing to do is draw up a written sales agreement. The sales agreement should set out all the terms and timelines. And from there you just need to stick to the terms and timelines set up in the sales agreement. Whatever title company you choose will take care of the title and escrow processes for you. Are you paying cash or will you be getting financing? If you are procuring a loan you will need to work through your lender's process. Get a mutually agreed upon sales agreement in place, submit your sales agreement and earnest money to a title company, follow the timelines and terms of the sale agreement, work with your lender. If you want a canned version of a sales agreement you can pick one up a Stevens Ness in Portland. It is pretty basic. If you want an attorney to draw up a sales agreement and you don't have one I've used Gary Kahn for various real estate business issues and he seems fair priced and very knowledgeable. Good luck!
Investor · Portland, OR · Member since 2017 · 18 posts · 10 votes
8y
Thank you for the advice, Lisa. Most likely I'll need to seek some degree of financing. I appreciate you laying out a bit of the process and for the lawyer recommendations. We don't yet have a sales agreement (in final stages of casual negotiations) and then we can move on to getting things on paper.
Residential Real Estate Broker · Portland, OR · Member since 2016 · 92 posts · 31 votes
8y
Hi Chris, I would suggest you get EVERYTHING written down clearly on paper and both sides fully understand the terms and conditions, this is a must between friends or family members. You do not want to ruin a relationship because of some unclear agreements. PM me if you want a referral for a lawyer. Good luck!