Hey guys,
im wanting to streamline my whole property buying process, and do due diligence in 5 days or less. Well i'll negotiate for 15 and get the vendor to keep the price lower if i reduce the due diligence period.
If i were to focus on properties to buy and hold, and i was sending out offers on a consistant basis then come up with 2 under contract at the same time it makes sense to have a system in place thats organised and streamlined. alot of properties i havent went out to view, i just submit offers and look at them if they come under contract that way i dont waste too much time.
I've compiled a list of things to get done when purchasing and the order i think makes the most sense to me. but i would like some opinions from experienced investors. You might be able to see where things could go wrong, or where i could be wasting time and money if i did it in the current order.
tell me what you think
Thanks
Sanj
Due diligence check list
Assumptions:
-You are pre-approved for a loan of the offer amount.
-You have and laqc company, or a trust entity set up, with a lawyer and accountant.
-You have secured a contract
-You have 30 days untill settlement after unconditional
-You have negotiated a due diligence period with this clause:
Due Diligence:
This agreement is conditional upon the purchaser approving (at the purchasers sole discretion) all matters that the purchaser considers may touch, concern or affect the property by …………………………….(insert date). This condition is inserted for the benefit of the purchaser.
-You have negotiated access to the property with this clause:
Access:
The Vendor agrees to provide the purchaser (and/or its invitees) access to the property as many times as necessary in order to carry out its’ due diligence investigation (with consent of the vendor and giving the required notice to the tenants as per the Tenancy Act.)
1. Do a drive by of area if its nearby (ie, check to see if it’s a good house, not demolished and next to gang headquarters)
2. Check comparative sales data provided by agent or (online qv $16) (ensure you arn’t getting ripped off in price)
3. Get keys / organise access to property
4. Visit property – Take pictures of property and included chattels
5. Property envelope – go to council photocopy plans
6. Book property manager to come in an give appraisal
7. Book building inspector to come in and inspect
8. Book Contractors to come and do appraisals / quotes for quick reno -
ie paint, and carpet.
9. Title search (qv online $10)
10. Get insurance quote
11. Property manager gives appraisal
12. Building inspector gives you a report
13. Contractors give you cost of repairs
14. Do your numbers again and check that it’s a good deal with all the
data available, at this point if its a bad deal you get get out of it and only lose a couple of days and $25
15. Bank account set up for buy and hold
16. Get mortgage organised and papers. sent to solicitor
17. Sign Property management contract so can market for tenants
18. Go unconditional
19. Get contractors to do work
20. Property valuer after contractors did some work (to show new
renovated value)
21. Sign settlement papers with lawyer
22. Chattel valuer, so can claim max depreciation
23. Update company minutes / send info to accountant
24. Refinance and pull out equity you have gained.
im wanting to streamline my whole property buying process, and do due diligence in 5 days or less. Well i'll negotiate for 15 and get the vendor to keep the price lower if i reduce the due diligence period.
If i were to focus on properties to buy and hold, and i was sending out offers on a consistant basis then come up with 2 under contract at the same time it makes sense to have a system in place thats organised and streamlined. alot of properties i havent went out to view, i just submit offers and look at them if they come under contract that way i dont waste too much time.
I've compiled a list of things to get done when purchasing and the order i think makes the most sense to me. but i would like some opinions from experienced investors. You might be able to see where things could go wrong, or where i could be wasting time and money if i did it in the current order.
tell me what you think
Thanks
Sanj
Due diligence check list
Assumptions:
-You are pre-approved for a loan of the offer amount.
-You have and laqc company, or a trust entity set up, with a lawyer and accountant.
-You have secured a contract
-You have 30 days untill settlement after unconditional
-You have negotiated a due diligence period with this clause:
Due Diligence:
This agreement is conditional upon the purchaser approving (at the purchasers sole discretion) all matters that the purchaser considers may touch, concern or affect the property by …………………………….(insert date). This condition is inserted for the benefit of the purchaser.
-You have negotiated access to the property with this clause:
Access:
The Vendor agrees to provide the purchaser (and/or its invitees) access to the property as many times as necessary in order to carry out its’ due diligence investigation (with consent of the vendor and giving the required notice to the tenants as per the Tenancy Act.)
1. Do a drive by of area if its nearby (ie, check to see if it’s a good house, not demolished and next to gang headquarters)
2. Check comparative sales data provided by agent or (online qv $16) (ensure you arn’t getting ripped off in price)
3. Get keys / organise access to property
4. Visit property – Take pictures of property and included chattels
5. Property envelope – go to council photocopy plans
6. Book property manager to come in an give appraisal
7. Book building inspector to come in and inspect
8. Book Contractors to come and do appraisals / quotes for quick reno -
ie paint, and carpet.
9. Title search (qv online $10)
10. Get insurance quote
11. Property manager gives appraisal
12. Building inspector gives you a report
13. Contractors give you cost of repairs
14. Do your numbers again and check that it’s a good deal with all the
data available, at this point if its a bad deal you get get out of it and only lose a couple of days and $25
15. Bank account set up for buy and hold
16. Get mortgage organised and papers. sent to solicitor
17. Sign Property management contract so can market for tenants
18. Go unconditional
19. Get contractors to do work
20. Property valuer after contractors did some work (to show new
renovated value)
21. Sign settlement papers with lawyer
22. Chattel valuer, so can claim max depreciation
23. Update company minutes / send info to accountant
24. Refinance and pull out equity you have gained.
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