Need advice on potential first deal

[Alex Oak]

I'm currently running the numbers on a property in my area that I believe has great investment potential. It is a FSBO that is owned by an elderly couple who are very motivated to sell. I plan on doing a final walkthrough next week after I verify the numbers this weekend, but want to make sure I'm prepared before presenting an offer. I have a plan for due diligence if the offer is accepted and I get it under contract.

First, do I need to bring a written contract with me when sitting down with the seller to make an offer? I am assuming I will need to include the 30-45 day due diligence clause that is contingent upon inspections checking out, etc. Do I need to be represented by an agent at any point?

Second, I plan on creating an entity that will keep my personal name off the property records altogether. I am assuming I can write an earnest money check with personal funds and then get the entity established during the due diligence period before closing and keep my name off the records?

I know that's a lot to answer and I appreciate your advice in advance!

[Anthony Davis]

Originally posted by @Alex Oak:

I'm currently running the numbers on a property in my area that I believe has great investment potential. It is a FSBO that is owned by an elderly couple who are very motivated to sell. I plan on doing a final walkthrough next week after I verify the numbers this weekend, but want to make sure I'm prepared before presenting an offer. I have a plan for due diligence if the offer is accepted and I get it under contract.

First, do I need to bring a written contract with me when sitting down with the seller to make an offer? I am assuming I will need to include the 30-45 day due diligence clause that is contingent upon inspections checking out, etc. Do I need to be represented by an agent at any point?

Second, I plan on creating an entity that will keep my personal name off the property records altogether. I am assuming I can write an earnest money check with personal funds and then get the entity established during the due diligence period before closing and keep my name off the records?

I know that's a lot to answer and I appreciate your advice in advance!

 Hey Alex,

Great job taking ACTION! The Order Of Business is up to you to decide. Investors tweak investing strategies based on what is working for them. Some locate a property; run the numbers; then call the owner(s). Some locate a property and call the owner(s) with a few key questions to decide if the owners are MOTIVATED enough before wasting time on the due diligence, and finding out later, that the owner(s) are not "willing to play ball." Some investors have team members who locate potential deals, then make offers on all of them to land a few accepted offers. (Sales is a "numbers" game.)

It took me more days than I expected, to complete my business formation process. With that said, if you have not started your business formation process, you may need to use your name instead of the name of your business on this deal. You do not need a Realtor.

You will need a standard purchase agreement. You will need a real estate attorney who does real estate transactions full time. If there is not an attorney who only does real estate transactions, make sure your chosen attorney is very familiar with what you are planning to accomplish. The longer the period, the better for you. However, many investors choose 14-30 days, depending on the type of closing involved. A business can shield your name, but it depends on your choice or type of business. You should become aware of which will work best for you. I chose to utilize the professionals at Legal Zoom. Let the "forum" know if you are wholesaling or purchasing for your self.

May Your Efforts Be Rewarded! This has been an information nugget.

Anthony