What documents are needed on an appointment?

Question

Hi guys, I'm on the verge of deploying my marketing plan. I am admittedly very nervous to go meet with sellers because I feel unprepared in the sense that I've never completed a real estate transaction, yet these people are relying on me to know what I'm doing and get this deal done.

Anyways, one thing that I'd like to clear up is what do you need to bring with you on your appointment, and what are you going to need from the seller?

Obviously, I know it's important to come with a contract in case they want to sign right away. Do you fill out the entire contract there with the seller, or do you bring it already mostly filled out with a few blanks left open for negotiation?

Do you bring in printed listings for recently sold comps?

What other documents might be helpful?

Also, I think it is very important to know what the SELLER is going to need. I would like to prepare a checklist for them with all of the things I will need them to do. Problem is, I don't know what I need them to do! I was thinking verification of their loan balance is important. What else will I need from them?

Thanks guys!

Bill Gulley · Answer

EJ, I really suggest you get it all done the first time. People sleep on it and change their minds, you go back and they refuse at that time. Then it's confrontational if you try to hold them to what they have signed and they see it as the requirements have not been met so they want out. Get it all done the first trip, much better strategy, IMO.

E J · Answer

Thanks for that post Bill. You bring up some great points. I do agree with you and I think that how you are perceived by the sellers is probably a self-fulfilling prophecy. Act confident, and they will think you know what you're doing, and will accept what you say. Act like a newbie, and they will feel like they're the ones teaching you, and definitely not trust you to buy or wholesale their house.

I actually have been using "we" on my website and marketing materials, for the exact reasons you say. This will definitely make other people think that we are a legitimate business, we have combined experience, and that if other people have agreed to work along with me, then the plan must work. This is also an important way to describe my buyers, because what a wholesaler does can be described in two opposite ways. You can describe it like you're an agent and say you will try to sell their property by finding a cash buyer who's interested. Or, you can describe it like a professional investor and say your partners will be providing the funds to close on the deal, which is why they will be at the closing. Which way sounds more promising? Also, if the seller tries to offer any terms you don't like, you can say "it's against OUR policy to do that", like you wish you could do it, but you just aren't allowed. For example, if they demanded a bigger earnest money deposit (although I've read this is rare), I would say I can't do that it's against our company policy, rather than saying I really don't want to put any more money into this deal.

But as far as the appointment goes, I will just make sure I do my homework on the property before I go, show up with a contract and probably some info on recent comps, then get that contract signed. If anything else needs to be done, it can be done the next day so I can go ask my attorney what else if anything he will need from me and then report back to the sellers which anything I need them to do right now.

Bill Gulley · Answer

EJ, I had two brief cases, one for buying one for selling. They had all the docs I needed for either purpose. I also had a small supply of cards and docs in a box in the car, just in case I spilled my coffee.
          
          I don't remeber anyone ever asking me if I owned my home, many asked where I lived and I told them the neighborhood.
          
          I can't think far enough back to remeber what my first seller asked me. People do ask basically how successful your are at what you are doing, maybe in not so many words. To avoid this in the early years, your opening presentation should be made with specific descriptions of what the process is. By saying this is what WE do, we do this and we do that, etc. implies others might be helping or assisting you, and there are others. You might explain who your team members are. Explain that your deals close at American Title and that CIndy takes care of all the closing documents. Having had a convesration with CIndy first might clue her in to your presentation so if they call, she won't say "who?" This is a third party influence for you, people know or should relize that if others who are knowledgable in RE are working with you, that's a credit to you.
          
          If you go through your presentation smoothly and act with confidence, taking command of the situation, you will will see that you are knowledgable, calm, in control, having the aswers and they will then have confidendce in you. They may never ask how many deals you have done. If they do, say this is my first one in this area with the team I work with and they all have years of experience in this business...etc. This is basically what I was saying about your contract question EJ. You will gain alot of confidence as you practice. 
          
          One other tip, something they do in realtor classes, sit down with a friend and role play doing your deal and actually fill out a contract in front of them explaining the contract and the entire deal. Ask them to sign when you hand the pen to them and point where with the other hand. Little things matter. Do that ten times, in parts, so you get it down without messing up. You will gain confidence as you go along, I guarantee it! It may sound corney, but it works.
          
          Another point. No matter what startegy I use or what type of loan I was doing, I always used the SMAE basic verbage, deal after deal. I also made comments and answered questions, but when I go over dislousres and the crust of the deal, the 100th guy hears exactly the same thing the 10th guy heard and the 1,000th guy. If anything at all pops up and they say I said, I can immediately go over exactly what I said on the spot! When a judge hears me saying what I said, he is fully aware of what is going on, he believes that what I am saying is what I said because he can tell it in the manner of my speech.  Be consistent!
          
          It takes practice! Good luck, Bill

Ryan Wilkinson · Answer

If you aren't an agent then legally you wont have to worry about the other disclosures.  Yes you can cross that section off and mark as-is sale.

I would ask the seller if they have a sellers disclosure alerting you to any problems with the house that they are aware of.  You are the buyer so you are the one that needs to know about the house.  If you ask, they must provide it, if you don't you are assuming the risk.

I think honesty is the best policy.  Being new to the game is NOTHING to be ashamed of plus it will lower the expectation of the seller.  Remember this is a buyers market.  You might be the sellers last chance to make something happen.  They need you more than you need them so they shouldn't be quick to toss you aside just because you aren't a millionaire real estate mogul.  I really believe if you are confident with yourself and respectful of the buyer, you will be able to win them to your side and then whatever you do will be fine because then you are directing the action.

The other thing you may consider if you really think experience is key is bring someone who is experienced with you.  You may have to give up some of the deal but you will have your experience.  How valuable is experience to you?

E J · Answer

I'm trying to convince the homeowner to trust me to wholesale their house to a cash investor, despite not owning a home myself or ever doing a real estate transaction before

Curt Davis · Answer

I am confused, are you selling the home for them as a RE agent or are you trying to assign the home to another buyer?

E J · Answer

Thanks for the reply. 
          
          As far as those disclosures- we have the same requirements in Illinois about the property condition and lead based paint, But if no agent is used, and I'm trying to buy the property as-is, it would be okay to just cross that part out of the contract and initial?

Also, if the homeowner asks how many houses I've bought, do I just be honest and say how I'm new? Will that hurt the chances of them doing business with me? I have not met with a homeowner yet but I plan to within the next week

Ryan Wilkinson · Answer

Good luck on the first one!  But, "luck's got nothing to do with it!"  Reality is, the seller likely doesn't know what to expect either so don't worry about what's "proper" just make it "your" meeting.  Treat them respectfully and be pleasant.

Keep it simple, bring the contract with you.  I would fill out the contract for time sake but I don't think it really matters.  You can build rapport by filling it out with the seller so they feel engaged in the process.  
Generally upon signing a PA, a licensed agent is required to also give a set of disclosure statements; sellers disclosure, lead-based paint, and a licensing disclosure.  If you aren't an agent though, don't worry about it. Two "Principals" in a deal can make any deal they want.  For a valid contract you just need an offer (signed by buyer) , acceptance (signed by seller) & consideration (earnest money...whatever amount you agree on).  
If you have any additional information about the home, yourself or company, it is always good to have.

Is this a first meeting?  Have you already negotiated a deal?  If you are there to get a PA then just get the contract signed.  Anything else you need you can get at a later time (in case you forget something)

Things the seller will need from you:
They may ask for an earnest money deposit - certified funds or cash commonly $1,000
Perhaps they will ask for a proof of funds letter verifying you actually have the money to buy their property; bank statement, 401k statement etc. wherever the money is coming from to fund the deal.
Anything else they would want or will need to produce you wont need on your first meeting and likely you wont need any of these things right off the bat.  Each deal is different and will require different things to be verified so once you see what the deal is tell them you will get back to them in a day or two with the information you need from them.

The most important thing is for you to be confident with yourself.  The other guy doesn't know your experience level so have a game plan of how you want the meeting to go and stick to it.  If something comes up that you don't know how to handle, tell them you will get back to them on it.  Don't give answers for the sake of giving answers.  No shame in not knowing everything.

Welcome to the business!!  I wish you success!!

What documents are needed on an appointment?

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