I always use a buyer ’s closing checklist, to make certain that I do not overlook any of the important details that are an integral part of the closing process. Closing is the time when it is critical that all of your t’s are Sample Buyer’s Closing Checklist 1. Review the title insurance policy for [...]

Once you have scheduled the closing date, the following four things must be done in conjunction with the closing: 1. Have all utility meters read on the day before closing. When you are closing on the purchase of a property under option, on the day before the closing, have all the public and private utility [...]

When it comes to protecting your position as buyer in a real estate transaction, you must make certain to cover yourself in case unexpected problems arise when it is time to close the deal. And this is especially true when buying a property that has been under option for six months to a year. This [...]

Please, whatever you do, do not, I repeat, do not use the same real estate purchase agreements that are used by real estate licensees in your state to document the purchase of a property under option. I say this because virtually all of the real estate agreements used by real estate licensees are written to [...]

After you have exercised your real estate option, you must purchase the property under option or assign the agreement to a third party. And if you followed my advice in Why All Property Title Transfer Documents Must Be Held in Escrow during the Option Period, you should already have a purchase agreement signed by the [...]

Unless you are a certified public accountant, board-certified tax attorney, or an enrolled agent, you should hire a tax professional who is licensed to represent taxpayers before all administrative levels of the IRS to prepare your tax returns. And yes, I am very well aware of all of the inexpensive off-the-shelf tax preparation software programs [...]

In addition to using property for sale web pages, online advertising, e-mail prop-erty fact sheets, and “for sale” signs to market your properties, I recommend that you place classified ads like the following sample in local daily and weekly newspa-pers, with your web site address, e-mail address, and telephone number in the body of the [...]

Another marketing tool that you always want to use to advertise your property is a professional-looking “for sale” sign placed in a strategic location on the prop-erty. The sign by itself may not sell the property, but it will let passersby know that the property is for sale. I use 4-foot by 4-foot signs, which [...]

If you already have a web site, all you will have to do is to create a property for sale web page to advertise your properties for sale online. To see an example of a property for sale web page, log on to my web site, and click on the Property for Sale button. I [...]

The key to quickly reselling your real estate options is to market properties under option to the largest possible number of prospective buyers. In today’s wired world, this includes the global audience of potential buyers, which are available online via the World Wide Web. And in spite of what some foreigners may think about our [...]

I have found the following five methods to be the most effective ways to market properties under option to potential buyers: 1. Property for sale web pages. 2. Property for sale ads online. 3. Property e-mail fact sheets. 4. Property for sale signs. 5. Classified property for sale ads.

Once you get into this business, you will very quickly realize that the biggest fear that every option buyer has is that somehow, the optionor will renege on his or her option agreement by refusing to sell the property after the option has been exercised. The only way that I know to overcome this fear [...]

You do not need to be a rocket scientist to be able to quickly figure out that how much you are able to sell your real estate options for is tied directly to how well you are able to package the properties you own options on. Packaging a property means to present the property to [...]

The first step in the process of reselling a real estate option is to calculate its resale value. There is an old adage in real estate sales, which goes something like this: “Getting greedy will get you needy.” Please keep this sage advice in mind when you are pricing your options for resale. In other [...]

Before you shell out any of your hard-earned cash and make any final payments to cleaning contractors, first do a walk-through inspection of the property to determine if all work has been satisfactorily completed. When doing your walkthrough inspection, make a list of any discrepancies you find, and give it to the contractor to correct. [...]

Vacant properties act as a magnet for vandals, arsonists, homeless squatters, and drug addicts. And the last thing you want to happen when showing a property is for the prospective buyer to be spooked by some crack addict passed out cold on the floor. The easiest, quickest, and least expensive way to stop anyone from [...]

At one time I owned a commercial pressure washing company in Tampa, so I know from firsthand experience how a properly applied pressure washing job can dramatically change the appearance of any building, asphalt shingle and tile roof, and flat surfaces, such as concrete sidewalks and driveway. The two keys to a great-looking pressure-washing job [...]

The very first thing that you should do when cleaning up a property is to have all of the loose trash and debris swept and raked up and put into heavy-duty 42-gallon plastic bags. And then have the ends of the bags tied off with tie wire so that the trash does not spill out [...]

You need to know that under most state construction lien laws, anyone who pro-vides a service, labor, or materials for the improvement of real property has a right to file a lien against the property ’s title for non-payment. Furthermore, if you do pay a contractor for a job and the contractor fails to pay [...]

Keep in mind that a little investigative work on your part can help you avoid becoming the next victim of some fly-by-night huckster posing as Mr. or Ms. Clean. Here are five ways that you can avoid being ripped off by an unscrupulous cleaning contractor: 1. Require that you be given a copy of the [...]

If you do not have the time or desire to clean up properties yourself or you cringe at the thought of getting your hands dirty or a blister on your little pinkie finger, I suggest that you hire out your property cleanups to professionals. The best source of competent cleaning professionals that I have been [...]

First things first: Always start cleaning a vacant property from the front sidewalk and work your way to the rear property line. You should always start your cleanup from the front sidewalk to enhance the property’s curb appeal and make it more visible and enticing to prospective buyers passing by. Here is a sequential listing [...]

Once a property is put under option, time is money and you cannot afford to dilly-dally around with the cleanup. And the trick to completing a fast property cleanup on schedule and within budget is in knowing how to: 1. Plan: Develop a cleanup plan based on the property’s appearance and information that was derived [...]

There is a world of difference between giving a property an industrial-strength cleaning and doing an extreme makeover like the ones shown on TV, where they take a building apart and put it back together. An industrial-strength cleaning is nothing more than a very thorough cleaning, which dramatically improves a property’s curb appeal by: 1. [...]

Finally, I highly recommend that you include a clause in your real estate option agreement that allows you to record a memorandum of real estate option On this ninth day of July 2005, Robert D. Jones as Optionor/Seller and Donald S. Reed as Optionee/Buyer agree to have Mr. John B. Good, attorney at law, whose [...]

The only surefire way that I know of to avoid any confusion or misinterpretations on the part of anyone involved in a real estate option transaction is to provide detailed, written escrow instructions, like the sample on page 181, to the attorney or title or escrow agent who is acting as the closing agent and [...]

There seems to be a common misconception among the real estate buying and selling public that title or escrow agents always look out for the best interests of all parties involved in a transaction. However, the fact of the matter is that title and escrow agents are trained to act in the best interest of [...]

To reiterate what I told you in Chapter 14, you can have the best option agreement known to mankind, but if the signatures of both the optionee and optionor are not properly witnessed, the agreement will most likely be unenforceable in a court of law. This can become a real problem when an unscrupulous optionor [...]

During negotiations and prior to the closing, you must explain to the optionor that he or she will have to sign the title transfer documents for the property— real estate purchase agreement and warranty or grant deed—at the same time the option agreement is signed. I have found that if you make it clear from [...]

Some investors advocate using a performance mortgage or deed of trust to secure the performance of an optionor under a real estate option agreement. However, I do not recommend using a performance mortgage or deed of trust for the following two reasons: 1. Most property owners will refuse to sign a performance mortgage or deed [...]