Process of Purchasing Duplex with no Agent

[Danny Sibley]

Hello Bigger Pockets, I’m a new investor and I’ve recently come across a duplex off market. I’ve been talking directly to the seller and he is willing to not use real estate agents so he doesn’t pay commission. My experience is from books, podcasts and talking to other investors. I’m wondering what the process will entail through closing. Do I need to submit a formal offer if we have already agreed to all the terms or can I just submit a purchase and sale agreement? I was going to consult a lawyer before I submit any binding documents. 

[Anthony Wick]

@Danny Sibley I just bought a duplex last Tuesday, no realtors involved. However, the seller did have an Attorney and I did bank financing. Here's how I did mine:

1. Seller and I verbally agreed to a deal. He wanted a preapproval letter from my bank. 

2. I wrote up a Purchase Agreement (you can find a template by just googling it). 

3. He did have his Attorney review it before we both signed it, but that wasn't necessary. 

4. My bank uses a law firm for Title Search and for Closing. 

5. I handed seller a check for earnest money, which he gave to his attorney to hold in escrow until closing. 

6. My PA had all the normal things in there, such as due diligence period, inspection, no new leases for current tenants, all appliances etc to be included in sale. 

7. The closing was at my banks attorney's office. Super easy stuff.