Hello friends,
Some of you might be experienced in "the art of investing in real estate" - some of you are "beginners" living in the US and overseas- so I'll try to explain some more as to how the purchasing process works and how we can make it easier for you.
1. First step- you usually contact and contract with a realtor. Hopefully you'll have a recommendation about a trustworthy professional. From my 12 years experience- having a good local real estate expert that cares about YOUR needs is critical to closing a successful deal.
2. Second step-you start searching for a property with your realtor. The question is- how many properties will you see till you find THE one? If you are like me- looking for the perfect investment (good condition so there's a minimum need for repairs, good neighborhood so you get the best possible tenants and rent and good appreciation chances in the future) you will probably drive your realtor crazy, see an everage to 30-50 houses and submit 5 offers (if you are lucky to find 5 that match your criteria). Hopefully- you'll get one accepted and can move one step forward.
3. Third step- Make the offer and start the negotiation process: your written offer to the seller/bank would be the signed and dated purchase contract and "earnest money"- usually $ 1000 in Phoenix. The seller will probably come back with an answer to your offer- reject (you went too low), accept (probably you went too high) or present you with a counter-offer. and there you go- back and forth, till the final price is agreed on. this can take between 2-10 days.
4. Fourth step- Wait till the closing date arrives. Usually 2-4 weeks from the date the contract was signed. This is the time to conduct the inspections- to make sure everything is OK with the property and to change your mind if you discover anything is wrong with it.If you get a loan for this purchase this is the time for your lender to take care of all the paperwork needed, till the loan is approved. That takes time and lots of documents to provide!
5. One or two days before the closing date you'll get the final estimated expenses from the title company that will distribute your money to whoever you are paying: the seller, the realtors (the seller's and yours), HOA, insurance and the title company itself for its services (including registering you as the house owner in the County offices). You'll need to transfer your downpayment ( 25%-50%) and your lender will transfer their share. if it's a cash purchase- you'll need to transfer the exact amount provided by the title company.
Congratulations- you are now the proud owner of a property in the US!
6. Once you get your house's keys- it's time for repairs: replacing/cleaning carpets, painting, buying appliances. Maybe your realtor can recommend a contractor to do the work, you'll find a property manager that will do the work for you ( "time is money" so that will cost-of course) or you'll need to take care of it yourself...:-(.
7. Renting time has arrived and you are probably 2-3 months down the road from the day the purchase contract has been signed. Your property manager/realtor will post the house for rent, get the calls, schedule the showings, check the potential tenants financial standing and finally prepare a lease for them to sign. This will incur commissions for your realtor and for the tenant's realtor and will take anytime from 1-2 weeks to 7-8 months? (Yes- we've heard that kind of horror stories...).
8. Finally- you get the one month deposit and first month rent (most of it goes to the commissions) and congratulations again- you've got yourself a tenant!
Complicated, expensive and long process? Definitely!!!
Would you like to make it simpler and start getting rent immediately as you transfer the money to the title company?
That's what Carelocations is here for!
We will skip all those steps and start paying you rent as the house become yours!
Would like to hear how we do it?
Contact me for additional information: naomiesal@gmail.com. or ask me about an upcoming presentation in your area.
Coming up soon- new properties in the market. Most of those listed in this blog in the last month have been sold!
Yours- as usual,
Naomi.
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