How To Replace Your Income With 12 Rental Properties (Part 8 of 9)
After coaching so many people through the process of buying cashflow properties and replacing their income…
I’ve arrived at a “framework” that I have my clients follow.
This 9 step process is the most logical and effective way to build your portfolio.
So far, we’ve covered:
Step #1 - Pick Your Market
Step #2 - Build Your Team
Step #3 - Getting Setup
Step #4 - Find The Money
Step #5 - Find The Deals
Step #6 - Analyze Deals & Make Offers
Step #7 - Due Diligence
In today’s post, I’m going to cover Step #8:
Closing & Funding
OK! So you’ve made your final purchasing decision, and you want to buy the house. Congrats!
It’s now time to get the pieces lined up to close. This a really important step so please pay attention.
Here are the keys to the “Closing & Funding” phase of buying a house:
Get Funding Lined Up - The most important part of buying a house is getting the money. As soon as you green light the property to buy, contact your lender (whether bank or private) and get the process started. Ask them about their timeline. Make sure you can close within the time stated on the contract. If not, ask for an extension from the wholesaler.
Decide On Your Closing Day - After talking with your lender, decide with the wholesaler and title company when you will close. Again, create ample time to get the loan processed, and set expectations so everyone knows what’s coming.
Schedule Insurance To Kick In - Contact your insurance agent and choose the best type of insurance with their help. Have your office manager fill out the paperwork and get the insurance set to kick in the day of the closing, so you are covered.
Final Walkthrough - On the day of closing, have your project manager do a final walkthrough of the house. You don’t know what might have happened at the house between now and the last time someone from your team was there, so take one last glance at what you are about to buy to avoid any surprises.
Attend Closing & Sign - Get your office manager POA for you so they can attend the closing and sign the docs for you. Make sure a copy of the HUD is gotten and sent to your accountant. Make sure the seller brings keys/any tenant leases/deposits/etc to closing as well.
Set Up Lender Payments - I usually have my office manager set up payments to my lender right away after the closing, just to make sure we start off on the right foot with them and the first payment isn’t late.
Those are the basics of closing & funding. Nothing too complicated but you want to make sure you do it all!
If you are interested in a more comprehensive training on how to get your first 12 houses, check out our 12 House Masterclass which includes not only includes a module on this, but also:
A comprehensive 50+ video training course on how to get your first 12 houses
Bi-Weekly group coaching calls with me
Access to our private, closed Facebook Group where you can ask me questions to your heart’s delight
Access to my private money lenders
My 2018-2019 Best Markets Report
Coaching Call Recordings
A “Freedom Artist” T-Shirt
And much, much more!
In my next post, I’m going to cover the final step, Step #9, which is…
Renovate, Rinse, & Repeat
This is the step where you renovate the house, get it rent ready, hand off to your property manager, and repeat!
Look for that in my next post.