Out of State Investor Legal Documents

[Jerry Poon]

I made a couple contacts through this forum with out of staters who I might buy properties from. They offer turnkey products, which works for me because I don't want to have to deal with contractors to rehab them. I have confidence in that they are who they say they are, but I need to protect myself. 

I will need proof that the property will be mine, proof of the financial documentation, etc. What other legal documents should I ask for to cover my bases? Also, I will also need documents from property managers for all the details on our contracts. What should I ask of them?

[Chad U.]

@Jerry Poon 

First, you should get a Purchase & Sale Agreement once you've agreed to a price.  Best to get an inspection and financing contingency (if you are getting financing).  They will instruct their Title Co (assuming they specify theirs) to issue a Title Commitment and once conditions are waived you'll go to closing, transfer the funds and you'll receive a Deed to the property.  Ensure you are receiving a Warranty Deed.  

As for property management, they should have their standard PM agreement for you to sign.  Don't sign it immediately, take your time and read this thoroughly, and if there are certain clauses that you don't agree with, ask them to revise it.  If it is not stated in the PM agreement, also get in writing that they will provide for monthly financial statements.  Or if they use a PM software such as Appfolio, make sure you get login access so that you can run your own reports.   

Hope this helps!