General Real Estate Library Articles on home buying, selling, marketing and 203k Consulting
Checklists for Tenant/Buyers and Sellersby Chuck and Sue DeFiore
Checklist for Final Meeting With The Tenant/BuyerCall the tenant/buyer and tell them congratulations, you have been approved. Set up the meeting and tell them to bring one check for the first months rent, made out to the seller, and a second check for the assignment fee, made out to you. These must be certified funds. If they do not bring certified funds, but a personal check; hold all paperwork until the checks clear and DO NOT GIVE THEM THE KEY. (You can take their personal check to their bank and cash it to move this process along). Tell them if the funds are certified, then at the meeting they will get their copy of the contract, assignment form, and the key (Only if this is the way you and seller have decided to proceed). Some sellers want to meet with the tenant/buyers and give them the key. Or, if the seller is occupying the home, they will need to move out. If the lease is not starting until a later date, then the tenant/buyer will receive the key then, usually from the seller. Send out your final letters later that day or the next and you're done. Checklist for Meeting With Seller After you have qualified a seller by telephone, and have set up a time to meet with him/her to sign the contracts and see their property, you need to bring the following. Note: (Be sure all parties that are on the deed are present). 1. Appropriate contract 2. Assignment form (if appropriate to thecontract) 3. Business cards 4. Brochure If after you see the property, and feel it would make a good lease purchase, go through the contract with the seller. Have the seller(s) sign and initial where appropriate. You should also sign and initial at this time. If the assignment form is needed (co-op, straight assignment) have the seller(s) sign off the assignment form also. Get the key. Tell the seller(s) you will mail them a copy of the completed paperwork. If you can't come to terms with the seller(s), leave a brochure and business card. Thank the seller(s) for their time. Be sure to follow-up by letter and enter the appropriate information in your database for follow-up. If the property does not meet your needs, and/or seller(s) wants ridiculous terms; tell the seller(s) you will need to evaluate the numbers and get back to them. Call the seller(s) in a day or so, and tell them that the property and terms did not fit your parameters for a lease purchase, and suggest a consultation. Be sure to follow-up your call with a letter along with a business card and brochure. Please keep in mind if at all possible you should have a basic understanding of the terms agreed to before going out to see the property. (The form in you LP manual for qualifying a home gets you all the information you need before you go out) This avoids making unnecessary trips to properties that are not workable. Checklist for Meeting With A Tenant/Buyer (You Have Not Done An Application Yet) After you have pre-qualified a tenant/buyer by phone (using the form in your LP manual), and have set up a time to meet with them to show the inside of the property (Note: Be sure when you set up the meeting time to tell the tenant/buyer to bring cash or checkbook for the application fee) you need to bring the following: 1. Application/Credit Check Form 2. Finance Summary Form 3. Flyers on the Property 4. Business cards (All of these forms are in your Lease Purchase Manual) When the tenant/buyer arrives give them a copy of the flyer on the home, your business card and an application. If the tenant/buyer is interested in the property have him/her fill out the application/credit check form. For couples get information on both. If the tenant/buyer really likes the property tell them you need a deposit to hold it. The minimum we require is 10% of the assignment fee. If they give you a deposit, fill out the Finance Summary Form. Be sure to make 2 copies of the Finance Summary Form, one for your files, one for the tenant/buyer. If you don't have carbon paper, write it twice, make sure all parties sign both copies. Tell the tenant/buyer you will call them once the credit check is complete, (and if a co-operative, approval of the owner). The deposit is non-refundable, unless they are rejected by the owner. If they say anything about the deposit being non-refundable, tell them that by your taking the property off the market you are losing other potential tenant/buyers' for the property. Once the tenant/buyers credit check, landlord information and job information check out, call the owner and tell them, e.g., Bob, you're done! We have found a great tenant/buyer for your house". We act like it is a foregone conclusion that the seller approves of our decision. We tell the seller to please sign the addendum we will send (if one is needed) and to return it to us immediately, so we can set up a meeting with the tenant/buyer to close the deal and collect the checks. Note: If the addendum is not returned before the meeting with the tenant/buyer we mail it out separately for both the seller and tenant/buyer to add to their contract. Remember, the addendum is just usually date changes to the original contract, which the seller and you have already signed. You are just making additions or deletions to the original contract.
Chuck and Sue DeFiore
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