How To Buy
Purchasing one of our investment properties is a simple step-by-step process which involves both you (Buyer) and us (Seller) to work together in completing the buy and sale of the property. The steps involved are as follows:
- Determine terms of the sale
- Complete Purchase and Sale Agreement
- Open escrow with title company and submit earnest money
- Arrange financing (hard money loan) if you are not paying cash
- Sign purchase closing documents
Determine Terms of the Sale
- Buyers Name
- Decide on the name (individual or company) in which you want to take title to the property.
- Sales Price
- We are a real estate wholesale investment company, therefore the price is pre-determined and "NET" to the seller minus seller’s customary closing costs.
- Earnest Deposit
- A refundable earnest money deposit is required in order for us to remove the property off the market. The amount of earnest deposit is pre-determined and the check is made payable to the title company who will be closing the transaction.
- Financing
- See below for additional information. Due to the short time frame to close on most of our non-resort properties it will be necessary to use a Hard Money Loan or cash to close. While traditional financing is not an option with our non-resort wholesale properties it is an option if the investor so chooses with out wholesale resort properties.
- Closing Costs
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All costs and fees associated with the escrow and transfer of title will be paid by the buyer and seller according to customary standards unless otherwise specifically outlined in the Purchase and Sale Agreement.
Buyer is typically responsible for ½ escrow fee, courier fees and recording fees. They will also be responsible for any lender loan fees and a lenders title policy if the lender requires one.
- Closing Date
- The closing date is pre-determined and based on the needs of our seller. In most cases you can close earlier than the scheduled closing date but no later. Usually you will have 3-4 weeks to close the transaction unless a foreclosure is pending in which case the time frame may be considerably less.
Complete Purchase and Sale Agreement
- Click the Buy Now button on the property details page for the property you are interested in purchasing.
- Read, print, sign and fax the Purchase and Sale Agreement to our office at 480.443.3655.
- Contact our office if you have any questions, cannot print the Purchase and Sale Agreement or you wish to talk to us personally about the property. Our office number is 602.550.6170.
- You may also use a standard Realtor Association Purchase and Sale Agreement if you are a licensed agent. Please remember that the purchase price is “NET” to seller minus our closing costs. Any commissions that need to be paid will be added to the purchase price.
- Please contact our office at 602.550.6170 to verify that the offer has been received.
- Note:
- We do not play favorites. We work on a first contract received basis.
Open escrow with title company and submit earnest money
The escrow/title company will handle the closing of the transaction to protect the interest of both Buyer and Seller. We use several local well known title companies that are familiar with our timeframes, transactions, addendums and hard money loans. These companies are familiar with a "Hold Open" escrow if your intent is to resell the property and wish to use that service.
Once you have verified that we our in receipt of the Purchase and Sales Agreement our office will open escrow with the title company. The title company name, address and phone number will be listed on your Purchase and Sale Agreement. You will have 24 hours to submit the required earnest money deposit to the title company. If the earnest money deposit is not received we assume you do not want the property and we move the second Purchase and Sale Agreement received into first position.
If you are having difficulty getting to the title company to drop off the earnest money deposit please contact our office at 602.550.6170 so we know not to sell the property to someone else.
Arrange financing (hard money loan) if you are not paying cash
As we mentioned earlier traditional financing is not an option when dealing with our non-resort wholesale properties due to the time constraints placed on us by our seller’s. This leaves the buyer with two choices;
- Cash – Many investors use their own funds to close the transaction. Those funds may come from cash in savings or other investments or it could be from a line of credit they have set up with their bank. Once the transaction closes they can either refinance the property or fix the property up to sell.
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Hard Money Loan – Hard money lenders are asset based lenders and work differently than traditional lenders. They lend money based on a specific loan-to-value (LTV) ratio, they don’t need appraisals and they do not lend based on credit scores. Most lenders will give you the amount they will loan you in 2 days or less.
Example: The value of the home is $200,000. A local hard money lender has stated they will lend 80% LTV or $160,000.
We have hard money lenders available. If you would like more information please contact our office at 602.550.6170.
Sign purchase closing documents
You will be contacted by our office or the title company to sign the purchase documents. Once everything has been signed the title company will record the deed with the county recorder’s office showing you as the new owner of the property. Congratulations!
If you need assistance or are a new investor and would like to get more information or are looking for that personal touch please contact our office at 602.550.6170. We are excited and look forward to showing you how to get startedinvesting in wholesale investment real estate!
