Experiences with Sage Acquisitions - Please Share
I'm looking at a HUD deal right now in my market, and spoke with a local realtor who broke down how Sage runs things now. I'm just reaching out so I can hopefully get a better understanding of timelines since they took over. Please share any stories, good or bad, that you have gone through. I look forward to hearing from everyone.
Hey Tom Kuhen can you be more specific in what timelines you need. Every market is different. I am in the southeast region. Once your offer is accepted you have two days to get contract packet into main office. Cash deals can close in 30 days. Loans close in about 45 days, if using rehab loan more time is needed most likely.
@Nicole W. I'm just looking for the general length it may take. What I was told, it goes something like this:
1. Submit offer with pre-approval / proof of funds letter
2. If offer is accepted, you have 48 hours to submit the wet-ink paperwork to the regional office (PA is the one for me), along with the EMD stated in the contract ($1,000) If you choose not to take the property, you are not bound to anything, so you could walk away without penalty
3. You have about 7 days to do inspections, get bids, etc. and should the contract allow for contingencies, this is your time to get out, but risk losing EMD (This is where I may be wrong)
4. Cash closing around 30 days
I've heard stories of closing times taking months since Sage has taken over. So if any of that information is incorrect, I'd appreciate some insight, so I can present more accurate numbers to a lender.
1. Signed contract is due back to HUD w/in 2 business days of contract acceptance. The challenge here is you need to get original signatures from your real estate agent, your real estate agent's broker, and your title company representative within that time...and then still allow yourself time to mail/drop off the contract. It is a very difficult timeline, but then again, if it's a really good deal and you are committed, you will find a way to make it happen.
2. Earnest money deposit must be dropped off to the office of the listing agent, not Sage. The listing agent for my property said if the check was in his hands w/in 3 business days of contract acceptance, it would have been ok. I didn't take that chance though...he had it in 2 business days. EMD has to be in certified funds.
You are correct that you can walk away penalty-free if you do not submit the contract and EMD. I have done that w/ a couple of other properties.
3. As an investor, you can pretty much kiss away any chance of getting your $1,000 back after submitting the EMD. That's the way the contract reads. There may be some extraordinary reason for getting it back, but as an investor, don't think that a poor inspection report will save you.
4. Cash closings must happen within 30 days, financed transactions must happen with 45 days. My understanding from talking to other investors is that if you initially state that you plan to pay w/ financing, and then change your mind and switch to cash, you are still allowed 45 days.
The 30 / 45 day clock starts when HUD/Sage signs the contract, not when the offer is accepted. In my case, my offer was accepted on a Wednesday, I turned the contract in on a Friday, HUD/Sage signed the contract the following Tuesday...so my clock started on Tuesday...but I did not actually receive a copy of the executed contract back until that Friday (3 business days after it was actually executed).
5. Before closing, there is a "Yardi P260" portal where your title company needs to upload closing docs. Specific instructions can be found on Sage's website, sageacq.com. Word of advice - communicate all of the information pulled from Sage's website to your title company well in advance. Do not assume that your title company knows all of the steps. I assumed my title company knew the process and I was wrong. Your title company must load all of the requested docs to the portal at least 5 business days in advance. To be safe, I would give them 7 business days...meaning request a closing date that is 7 business days after your title company loads the closing docs into the portal. If you are going to close w/ financing, have everything in order and have your title company prepare the HUD-1 and submit all of the necessary docs by Business Day 30. Why so soon? Because delays are inevitable. This way if HUD/Sage does not review your closing documents in a timely manner (they may not), you still have at least another 5-7 business days to resubmit the closing docs (yes, your title company will need to resubmit the closing docs), allow time for HUD/Sage to review, and still have time to close within the 45 day window.
Please let me know if you have any follow up questions. Happy to help and hopeful that sharing my experience will allow other investors to avoid the emotional ups and downs that I have dealt re: my HUD property over the last month.