Ok, you have established trust with the seller and now it’s time to get down to the business of closing your investment property.
Here are the steps that fix-and-flip professionals take to insure an orderly and effective closing:
- Set up escrow
- Arrange inspections by specialists on your team for electrical, plumbing, HVAC, chimney, well, asbestos, radon, lead paint, and insect damage (e.g. termites)
- Use the inspection data to help confirm improvement cost estimates you made at the beginning of your property valuation
- Order a property survey, request a settlement statement, and review the title search report
- Prepare financing and arrange for property insurance
- Prepare for repairs by scheduling roof, HVAC, etc., and also schedule pest control (if needed)
- Prepare for improvements by scheduling your drywall, flooring, countertops, windows, etc.
- Also schedule utilities, and have a locksmith ready to come out to re-key and install your keybox
- Schedule your cleanout crew, and have a dumpster delivered so you can begin the tear-down part of your re-hab project
- If you are working with a designer or architect, schedule that meeting as well
- Sign your closing documents
Congratulations, you’ve acquired your investment and are now ready to go. In our next post we will look at the major stages of rehabbing your property.
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