Speed of implementation is critical when analyzing deals. Profits can, quite literally, be made or lost within a matter of seconds. Hot leads favor the decisive, and those who take the initiative are typically rewarded with the most profitable transactions. Therefore, it is imperative to prepare yourself accordingly.
Of particular importance, however, is the ability to make an educated offer at a moments notice. Presenting the seller with organized information will demonstrate your desire and professionalism, likely facilitating the transaction. To do so, you will want to compile several packets and folders that consist of all the information you gathered during the three-step deal evaluation process. These packets are critical components for analyzing deals, as they serve as the foundation of an offer. You will want to consider creating the following:
- A buying appointment folder
- A short sale buying appointment add-on folder
- A comps package
Buying Appointment Folder
This folder will contain all of the necessary paperwork to sign a contract with the seller, including:
- Purchase and Sale Agreement
- Backup Purchase and Sale Agreement
- Additional Creative Contracts (e.g., Owner Finance, Sub To, etc.)
- Authorization to Release Information
- Property Disclosures
- (Realtor) Listing Agreement
- Leave-Behind Seller Credibility Packet
Short Sale Buying Appointment Add-On Folder
While analyzing deals, exit strategies can unexpectedly change for a number of reasons. In the event your strategy shifts to a short sale, prepare yourself with an additional short sale buying appointment folder. Accordingly, present the seller with the appropriate information regarding the aspects of their particular situation. Include the following documents:
- Short Sale Check List
- Financial Statement
- Option Agreement
- Leave-Behind Short Sale Credibility Packet
Create a Comps Package
This package consists of several documents that will help you determine your offer for the subject property. Use available valuation tools to determine and compile the following:
- Property card
- MLS comps
- MLS map with comp pushpins
- Comps from reputable real estate valuation websites
- Property repair sheet to determine costs of rehab
- Other relative information regarding price
Prepare For Your Meeting With the Seller
By creating each of the previously mentioned packets in advance, you are placing yourself in a position of power relative to the seller. Ultimately, you will have in your possession, every piece of information required to make a successful transaction. Presenting the buyer with substantial data will not only prove your willingness to procure the property, but it will ensure that the numbers favor each party.
However, prior to meeting with the seller in person, there are several tasks you must accomplish:
- Send a thank you and appointment confirmation to the seller.
- If the subject property is a short sale, be sure to send the seller any necessary short sale documents in the form of an email attachment.
- Call to schedule comps showing appointments.
- Call the seller to confirm the appointment.
- Familiarize yourself with the buying appointment folder.
Provided the in-person meeting goes according to plan, and everything appears in working order, you may further your position by providing the necessary documents for closing the deal. Make sure you have several contracts with you, including creative contracts such as Owner Financing, Subject To, and Options contracts. You never know when you will need them. Always see your local investment attorney/title company to have these documents created or reviewed.