First time purchasing an investment property without a realtor

Buying & Selling Real Estate
7yFollow

First time purchasing an investment property without a realtor

Brian Yang
Fayetteville, NC · Member since 2017 · 4 posts · 0 votes

This is my first time purchasing an investment property without a real estate agent, and I want to get things right.  Just need some folks to double check my work and give me some feedback.  I've bought two homes in the past, but it was all a blur.  Both were done online and overseas with realtors, so we used DocuSign/print, sign, scan techniques and I'll probably do the same for this one as well with the attorney.

My next door neighbor is moving in a month or so and wishes to sell their home.  I've run some comps within my area they're going to sell it to me for the market price, $145,000 (Unfortunately, it's not the deal of a lifetime, but the home is maintained very well by very respectful people, and the couple are senior citizens.  I'm trying to save them a few bucks as they move).  

1.) Conduct home inspection by a certified home inspector.

2.) Research for loans and get prequalified (I have a few banks in mind/local banks/local lenders for a 30yr mortgage).

3.) Lender Appraises the home.

4.) Talk to a real estate attorney to represent myself (buyer) and the seller.

5.) After the inspection, ask the seller to repair or renegotiate the price / agree with terms.

6.) Meet with all parties and do the paperwork. Sign the Paperwork. Submit earnest money

7.) Send all that stuff to the bank and wait for Closing.

8.) Close, sign more paperwork, send Down payment to the bank, the seller received payment from the bank. 

9.) I get the keys, and they move out.

Questions:

1.) If everything goes through, does the bank cut a check straight to the seller after I deposit the down payment to the bank?

2.) Can the same attorney represent both the buyer and the seller?

3.)  Am I missing any key players besides the seller, buyer, appraiser, lender, attorney, and the home inspector?

4.) Does an LLC need to be set up in advance or can I set up the LLC after closing to put the property under the LLC? I just read in another forum that an LLC is only needed if I'm very wealthy (which I'm not), so I'll stick to liability insurance.

Thanks, everyone for your time in reading/replying.  The area is Fayetteville, NC 28304 area.

0Reply
21 views

3 Replies

Jump to latestLatest
  • Diana Muresan
    Lender · Chicago, IL · Member since 2018 · 352 posts · 147 votes
    7y

    Are you in a state that requires an attorney? I would have one anyway only because you don't have a realtor. On the lender side you can close in an LLC or you can put it in an LLC after closing, that's a question for your CPA if an LLC or an S Corp is more suites, it's all about minimizing your tax bracket on the rental income.

    Do you need any advise in ragards to the financing?

    0Reply
  • Taylor Pelzel
    Charlotte, NC · Member since 2018 · 29 posts · 16 votes
    7y

    First thing you need to do is get preapproved for the loan. Second, you need to get the house under contract. You can find tons of offer to purchase and contract forms online. Once contract is signed by you and seller you need to notify your lender and send him a copy of the contract. You also need to find a real estate closing attorney and schedule a closing date. Yes, an attorney typically "represents" both sides but doesnt necessarily "have" to. At this point you have your due diligence period to have any inspections, surveys, ect, ect, done on the property. The lender will schedule an appraisal. If you did have a home inspection performed you can usually leverage the inspection report to renegotiate, based on repairs that need to be done. At closing, all documents are signed by both buyer and seller including the deed. Once all paperwork is signed, funds aren't dispersed until the actual recording of the deed. This could be same day ( depending on what time you close and the method your attorney records the deed.) Some attorneys take the deed themselves to the courthouse. Some attorney have an "e-file" which is much quicker and efficient but the attorneys usually charge a higher fee to provide this service. Once the deed is recorded the checks are cut!

    0Reply
  • Brian Yang
    OP
    Fayetteville, NC · Member since 2017 · 4 posts · 0 votes
    7y

    Thank you all for your response!

    Diana, I'll contact you about financing.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free