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:
1) Set up escrow
2) Arrange inspections by specialists on your team for electrical, plumbing, HVAC, chimney, well, asbestos, radon, lead paint, and insect damage (e.g. termites)
3) Use the inspection data to help confirm improvement cost estimates you made at the beginning of your property valuation
4) Order a property survey, request a settlement statement, and review the title search report
5) Prepare financing and arrange for property insurance
6) Prepare for repairs by scheduling roof, HVAC, etc., and also schedule pest control (if needed)
7) Prepare for improvements by scheduling your drywall, flooring, countertops, windows, etc.
8) Also schedule utilities, and have a locksmith ready to come out to re-key and install your keybox
9) Schedule your cleanout crew, and have a dumpster delivered so you can begin the tear-down part of your re-hab project
10) If you are working with a designer or architect, schedule that meeting as well
11) 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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