Keeping Closings on Track

As we've accelerated our growth at Giulioni Real Estate, we've learned we need a checklist for just about everything. While the work we do isn't overly complex - it is fraught with plenty of opportunities for error. So in the last 12 months, as we've accelerated our growth, added new team members, and launched business lines - we've become increasingly focused on building repeatable, error-proof systems.

This blog is the first in a series outlining how we manage a particular piece of our business. We hope you find it helpful in building your systems and look forward to hearing how you put it to use!

📝 Checklist: Closing on a New Acquisition

Week One: Validate Your Interest

✅Wire the Earnest Money: Earnest Money is typically due within 2-3 days of signing the purchase agreement. Your agent will connect you to the title company (or if working with a wholesaler, they can direct you accordingly) - though you are welcome to work with any title company you choose. You should expect to wire 1-2% of the purchase price in earnest money - the purchase agreement will dictate the amount.

✅Review the Inspection: As soon as your offer is accepted, either you or your agent should schedule the inspection. The inspection should occur well before the inspection window closes, as there may be findings that warrant further exploration. A typical inspection window is seven days, but you can negotiate this point!

🌟Make sure you have a sewer scope included in the inspection. Sewer scopes are typically $200-250 dollars and are non-negotiable, as they will save you from an unexpected $5,000 (min) to $15,000 repair.

✅Get a Bid: Send the inspection report to your contractor, and ask him/her to walk the property with the inspection in hand to provide you with an SOW and bid. If you know the property is a major project, ask your inspector and contractor to walk the property together.

✅Review SOW & Inspection: Review the SOW from your contractor vs. the inspection report, and ensure the SOW accounts for significant inspection findings.

If the SOW is more than you budgeted (and there were notable findings not visible in photos, such as foundation issues), this is the time to work with your agent on repair requests/closing credits via your inspection response. If you ask for repairs and the seller agrees, ensure that your contractor or inspector validates all work completed before closing.

If the findings far exceed what you expected, and you're not confident in your ability to rehab the property - consider walking away. At this point, you've paid only for an inspection (a sunk cost). Saddling yourself with a lousy asset is likely a 5-digit (minimum) mistake - no point in throwing good money after bad!

✅Sync with Your Lender: Ensure your lender has a signed purchase agreement, is in touch with the title company, and has kicked off the appraisal process. Your agent should be coordinating appraisals; if you don't have an agent - expect to coordinate this on your end via the seller.

🌟If you don't have an agent in place, all coordination (i.e., inspection, contractor, appraisal) is on you. Try to group these vendors to minimize trips for you, your team, and inconvenience to any current residents / the seller.

✅Reach out to Your Insurance Broker: Get an insurance quote before your earnest money goes hard, just in case! We've had a few properties that proved exceedingly difficult to insure. Make sure to get a vacant quote if the rehab will be significant; otherwise, you're likely okay with a traditional quote.

Week Two - Closing Day: Keeping Things Rolling

✅Play Quarterback: Stay in touch consistently with your lender and agent - and ensure you provide all of the documents your lender needs promptly (i.e., hours, NOT days). If you're working with a bank, you're looking for a "clear to close" - and if you're working with a Private Money Lender, you'll need to send a promissory note, and the title company will send your lender the final amount to be wired.

🌟While there isn’t a lot required of you at this stage (assuming you checked the boxes in week one), this is the time when your team is hard at work. Make sure you’re in the loop and that your agent, lender, and title company are all communicating and pushing the work forward!

Closing Day:

✅Wire the Funds: Show up to the title office, sign the papers, wire the cash!

✅Put Insurance in Force: Let your lender know the estimated closing date in advance and confirm when you close. Ours often requires pictures of the house - make sure you have those on hand, just in case!

✅Put Utilities In Your Name (Or PM's name): You want to ensure you keep power/water on at the property!

✅Change the Locks: As soon as you've closed, ask your contractor to change the locks (and we'd recommend a security system change too).

✅Update Your PM Agreement: Ensure your PM agreement is updated to include the property.

🍾Cheers: Toast the moment and enjoy - and be ready to roll up your sleeves on rehab starting...tomorrow! 😉

What did we miss? What's on your closing checklist that we should add?🦻🏻Let us know in the comments below!