Absentee out of state, Closing the deal

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Absentee out of state, Closing the deal

Ron Woods
Wholesaler · Las Vegas, NV · Member since 2015 · 68 posts · 7 votes

Hi there BP community. Sorry if this question has been asked but I'm trying to put the pieces together I'm missing here. A lot of people have been preaching marketing to Absentee out of state & I am ready to try this. I know with IN-State & Owner Occupied you can meet them, walk the property, and close the deal right there by having the Purchase & Sale with you. But with Out Of State what does that process look like?

How do you get access to the property to walk it if they are out of state? Do they coordinate with a tenant to let you in? 

How are you closing them on the sale? Call them right after you visit?

And how are you sending them the Purchase & Sale Agreement? Via email back & forth in some sort of fill and sign program?

Are a lot of you doing these deals with out ever meeting the person or do you find a way to connect with them? Do the seller have to be there or at closing to sign or can this be done with a notary? 

Whats the usually way this works with Out of State?

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Jeff RappaportPro Member
Specialist · Salt Lake City, UT · Member since 2015 · 533 posts · 378 votes
10y

@Ron Woods, you are overthinking this whole process!  As far as access to the property the seller will figure a way for you to see it.  It may be coordinating with the tenants or property manager.  It may be through a neighbor.  I have even had sellers overnight me a key.  It really won't be a problem.  I usually do everything over the phone and then email them an agreement.  I spell it all out with them and call them if necessary.  I set up a closing with a local title company.  I have the closing agent reach out to the seller and work through all the details.  Paperwork can be overnighted or delivered.  My job is to make sure everyone is doing what they are supposed to do.  I have bought a number of properties where I have never met the seller.  Much easier to do when it is a cash transaction.  Takes a little more work to get an owner financing deal accepted from a seller you never meet.  However, it can be done!  

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  • Jeff RappaportPro Member
    Specialist · Salt Lake City, UT · Member since 2015 · 533 posts · 378 votes
    10y

    @Ron Woods, you are overthinking this whole process!  As far as access to the property the seller will figure a way for you to see it.  It may be coordinating with the tenants or property manager.  It may be through a neighbor.  I have even had sellers overnight me a key.  It really won't be a problem.  I usually do everything over the phone and then email them an agreement.  I spell it all out with them and call them if necessary.  I set up a closing with a local title company.  I have the closing agent reach out to the seller and work through all the details.  Paperwork can be overnighted or delivered.  My job is to make sure everyone is doing what they are supposed to do.  I have bought a number of properties where I have never met the seller.  Much easier to do when it is a cash transaction.  Takes a little more work to get an owner financing deal accepted from a seller you never meet.  However, it can be done!  

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  • Ron Woods
    OP
    Wholesaler · Las Vegas, NV · Member since 2015 · 68 posts · 7 votes
    10y

    Jeff thanks so much for spelling that all out. Makes sense. You must be doing a great job of selling if people will overnight you a key. 

    What do you do about earnest deposit to the seller? 

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  • Jeff RappaportPro Member
    Specialist · Salt Lake City, UT · Member since 2015 · 533 posts · 378 votes
    10y

    @Ron Woods, earnest money is very straightforward!  I put in the purchase agreement the title company I will be using and the earnest money will be deposited within 3 business days of a signed agreement.  I also spell out that there will be a due diligence phase (usually 2 weeks) that the earnest money is fully refundable.  Keep in mind when you are dealing directly with the seller you can negotiate anything you want.  I just did a deal where I put up $10 earnest money.  I told the seller I would not be the buyer and I was not willing to risk any of my own money on his property.  However, I have a large network of investors that I work with and was willing to see if I can pass the deal along to one of them.  The seller agreed and I went and found another investor that bought the house.   This works just fine when you are dealing directly with the seller.  If there is a realtor involved you will have to put up earnest money and usually at least $500-$1,000.  You may also have issues closing with the title company you prefer.  

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  • Ron Woods
    OP
    Wholesaler · Las Vegas, NV · Member since 2015 · 68 posts · 7 votes
    10y
    Originally posted by @Jeff Rappaport:

    @Ron Woods, earnest money is very straightforward!  I put in the purchase agreement the title company I will be using and the earnest money will be deposited within 3 business days of a signed agreement.  I also spell out that there will be a due diligence phase (usually 2 weeks) that the earnest money is fully refundable.  Keep in mind when you are dealing directly with the seller you can negotiate anything you want.  I just did a deal where I put up $10 earnest money.  I told the seller I would not be the buyer and I was not willing to risk any of my own money on his property.  However, I have a large network of investors that I work with and was willing to see if I can pass the deal along to one of them.  The seller agreed and I went and found another investor that bought the house.   This works just fine when you are dealing directly with the seller.  If there is a realtor involved you will have to put up earnest money and usually at least $500-$1,000.  You may also have issues closing with the title company you prefer.  

     Ok Jeff, I did hear about something as small as $10 earnest money. That seems to me like the seller would be like $10?? I will take the advice from people like you that know what they are doing. Would you mind if I PM you with any additional questions?

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  • Jeff RappaportPro Member
    Specialist · Salt Lake City, UT · Member since 2015 · 533 posts · 378 votes
    10y

    @Ron Woods, like I said, you can negotiate on all aspects of the purchase when you dealing directly with the seller.  I very rarely have a seller question anything about earnest money.  Sometimes I offer more to make them feel comfortable.  Other times, I offer almost nothing.  The less motivated the seller typically the more you will have to offer in terms of earnest money.  Sure, please pm me with other questions you may have.  Wish you the best!

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