The type of follow-up you need to do will depend on your role in the contract. As our first example, let’s take a look at how this process can be used to close a deal on a basic rehab project.

Step 1 – Get the property under contract with the seller.

o Be sure that you have included at least one escape clause which states that the deal is contingent upon something, such as financing, inspection, or cost-bid analysis.

Step 2 – Write your deadlines on a calendar.

• When is your inspection contingency or cost-bid analysis deadline?
• Do you have any other escape clauses? When do they run up?
• Circle the date 24 hours prior to your deadlines. This is the date by which you absolutely must have all of your numbers and financing in place. If you don’t have an approved loan by this date, either cancel your contract or get an extension. You don’t want to be forced to buy a property that won’t work for you, nor do you want to lose your earnest money.

Step 3 – Submit the accepted contract to the title company and to the lender.

• Begin working on your preliminary title report and get your lender to begin working on your loan.
• It is the responsibility of the lender to order the appraisal. In order to approve your loan, they must get the appropriate final or updated documents from you. If your lender has not yet submitted your loan to underwriting, it is important to approach him or her and be direct in asking the reasons for the delay. If the lender continually says that he or she needs just one more thing before your package can be submitted to underwriting, you may want to start looking for a backup lender. This is especially true if you are the seller and the buyer’s lender is stalling.
• Follow up with your lender on a weekly basis.
• If the lender requests something from you, make it your top priority to provide it to them within 24 hours.
• Each time you talk to your lender, confirm the date of your closing.

Step 4 - Order the inspection of the property.

• Make note of any unexpected problems that were discovered in the course of the inspection.
• Determine whether or not it would be a wise decision to continue to negotiate the purchase price. If you are working with a bank, send them a copy of the inspection report and ask that they negotiate further on the price. You never know how motivated the bank is. There is no harm in asking; the worst thing they can do is say no.
• When you are the seller, be sure to follow up on the findings of the inspector. You don’t want to receive any surprises from a buyer.

Step 5 - Start getting bids on the repairs.

• When getting estimates, try to schedule all your rehab people to come to the property either at the same time or in 15-minute increments to minimize the number of trips you have to make to the property.
• Once your offer has been accepted, schedule the repair men to start their work on the property on the day after your anticipated closing date. Once you have closed on the loan, the interest clock is ticking. Arranging ahead of time for work to begin on the property immediately after closing is crucial.
• Don’t do any work on the property prior to becoming its owner unless you are 100% positive you will close on the deal. You do not want to spend money on a property that fate may prevent you from purchasing.
• Remember, you can double-schedule your repair guys as long as they won’t be tripping over one another. For example, it is unlikely that scheduling your roofer, plumber, and gardener to work at the same would present any problem.

Step 6- Follow up with the title company.

• Find out whether or not they have done the PR.
• Be sure there are no judgments or liens that need to be satisfied.
• Make sure that your offer afforded the seller enough of a payoff.
• Confirm the scheduled date and time of the closing.
• Find out when you will be able to actually take possession of the property.

Step 7- Follow up on the appraisal.

• Find out when the appraiser is scheduled to visit your property. You need to ensure that you will have time to inspect the property to determine if it meets your approval prior to time of the appraisal.
• Find out whether or not there are any repairs you are obligated to perform in order to receive the financing.
• Look into whether the amount needed to make the repairs can be put in escrow or if the repairs are required to be completed prior to closing. This is critical when you are the seller.

Step 8 – Go to closing.

• Know how much money you need to bring to the closing table, and in what form you must bring it.
• Take your state-issued picture ID.
• Take copies of all the signed paperwork with you in case there is a problem, and make sure you bring anything else the title company has requested.
• If you do not get your keys at the time of closing, schedule a pickup time prior to leaving the title company.

Step 9 Put up a “For Sale By Owner” (FSBO) sign, install a key box, and begin your marketing campaign.

• The second that the title has been put in your name, start advertising the property. Don’t wait until you have finished rehabbing the property to begin to market it. You cannot afford to lose that valuable time.
• Make use of Craig’s list and other free websites, take out an ad in the paper, put up signs, hire an agent, or use other methods; but begin your marketing campaign as soon as possible.
• In front of the house, post fliers that tell potential buyers what repairs you are going to make. List both the price of the home after repairs and the as-is price. Entice potential buyers by offering to provide them with the option to choose the color of paint you will use and to make other decisions that will allow them to put their stamp on the home without affecting your budget. Get people excited about the product before you even open the front door.
• Install a key box so you do not have to meet those workers whom you trust at the property every time work is being done. Choosing to do this will save you time and spare you the inconvenience of traveling back and forth to the property. Another benefit is that your workers will be able to put in work at the times most convenient for them.

Step 10 - Get a buyer under contract to purchase your home!

The process begins again when you find a buyer for your property, although this time, your role is that of seller. The first thing you must do is evaluate any prospective buyers to make sure they are qualified to purchase the property. You don’t want to take your property off the market only to discover the interested party was unable to get a loan. Once you are satisfied that financing will not be an issue, go through the above list again, but from the point of view of the seller. When talking to and following up with lenders, you will be talking to the buyer’s lender. You will need to make sure that there are no judgments against the buyer, and you will need to schedule your closing. Instead of marketing this property, you will begin searching for your next deal, on which you will repeat the process again. At some times, you may be working on multiple deals at a time, functioning as buyer on some and seller on others. I have found that in these situations, it is helpful to have a checklist. This will help you avoid any mix-ups by enabling you to keep track of exactly where you are on each property.

The process for assigning a contract or doing a simultaneous closing is almost the same, but there are a few important differences of which you should be aware. The following list is similar to that above, but addresses the differences involved with doing these types of deals.

Step 1 – Get the property under contract with the seller.

• Confirm the presence of escape clauses that can be used in the event that you are unable to find a buyer for the property.

Step 2 – Write down your deadlines on a calendar.

• Know the deadline of your inspection contingency or cost bid analysis.
• Know the date that any other escape clauses expire.
• On your calendar, circle the day before each of your deadlines. This is your absolute deadline for finding a new buyer. If you do not have a buyer by this date, cancel your contract or get an extension. Do not put yourself in a position in which you are forced to buy a property that won’t work for you, nor do you want to lose your earnest money.
Step 3 – Start marketing your property to other investors.
• Spread the word to other investors that you have the property.
• Call all the people in your network.
• Post the property on your Real Estate Investment Association (REIA) website.
• Advertise in the newspaper.
• Post information on the property on the Wealth Intelligence Academy (WIA) discussion boards.
• Pick up the phone and call around to let people know that you have a great deal.

Step 4 – Hold an open house.

• Bring your potential buyers in to see the property. For both you and the seller, the easiest way to do this is to hold an open house, where any interested buyers may come see the property.
• Be sure to write down the information of all those who attend. These are people whom you should bump to the top of your call list; be sure to contact them when you find your next deal.
• If no one comes, don’t be discouraged. Simply pick up the phone and call to invite all the investors that you know.

Step 5 – Get a contract signed with your new buyer.

• Make sure that the dates for their escape clauses end before your dates do. For example, if you need to have your inspection done by the 15th, they must have theirs done by the 13th. If you have to close by the 28th, they have to close by the 25th.
• Give yourself some leeway in case any unforeseen problems arise.
This is where most investors go into cruise control. A wise investor knows that there is still work to be done. You may have received half of your assignment fee up front, with the other half due at closing. However, if you received the entire amount up front, you should take the new buyer to meet the seller. Let them know that they will be dealing with each other from that point forward.

Step 6 –Get the contract to the title company and to the buyer’s lender, if applicable.

• Make sure you get a copy of the new contract and the assignment of contract to the title company so they will know who the interested parties in the transaction are. The title company must have all the information to ensure the accuracy of the funds collected at closing.
• Obtain the preliminary title report to give to your new buyer.
• To help the process move as quickly as possible, make sure the buyer has submitted everything to his or her lender.
• If you are doing one-day financing in order to facilitate a simultaneous closing, you will need to follow up with both lenders to make certain that they have all the necessary paperwork from you and the buyer.

Step 7 - Follow up with your new buyer.

• Be sure the buyer has ordered the appraisal.
• If your buyer is receiving a loan, speak with the lender to see what still needs to be submitted in order for the loan to go to underwriting.
• If you are working with a cash buyer, insist on seeing proof of funds.
• If the new buyer wants to have an inspection done, you should allow an inspection period of no more than 24 to 48 hours. If for some reason they decide to back out of the contract, you will have more time to find a new buyer for the property if you provide them only a small window in which to have an inspection done and make use of their escape clause.

Step 8 - Follow up on the appraisal.

• If a lender is involved in the deal, they will probably require an appraisal before finalizing the loan.
• Be sure of the scheduled time and date of the appraisal.
• Be sure you are aware of any appraisal-required repairs that must be completed in order to receive financing.
• Find out if the amount needed to make the repairs can be put in escrow, as being required to make the repairs prior to closing may present a real problem when trying to assign the contract.

Step 9- Follow up with the title company.

• Find out whether or not they have done the PR.
• Make sure there are no judgments or liens that need to be satisfied.
• Be sure that you have provided the seller with a high enough payoff amount.
• Confirm the date and time of the closing.
• Make sure that you have taken all necessary steps and have everything that is required to assign the property and do a simultaneous closing, if applicable.
• Confirm the date you will receive the remainder of your assignment fee.
• Take copies of all the signed paperwork with you to the closing in case there is any problem.

Step 10 - Finally, send a thank you note to your buyer. Make it a positive transaction for them. You want to do business with them again down the road.

No matter what kind of transaction you are doing, the key to being successful is remembering to follow up. Take these steps and implement them. If you discover a need to add steps in a particular area, do so. There will be bumps in the road, but if you choose to view every problem as a riddle to be solved, you will find a way to close the deal. You can be a successful investor!