Package One - Including Part 1, 2 & 3!
PACKAGE ONE - GET IT STARTED!
PART 1: PURCHASING A HOUSE
A) PRE-OFFER WORKSHEET - This is a must!To be filled out BEFORE the 1st offer.Leads you step by step to the true value of the property, gives a good estimate of the cost of the renovations, and most importantly your Cash on Cash percent return.
- PROPERTY WORKSHEET A310
- PROPERTY WORKSHEET B
B) NEW PROPERTY CHECK LIST - Invaluable checklist which lists everything step by step that needs to be done before settlement so that you don?t miss anything!
- NEW PROPERTY CHECKLIST
C) "SUBJECT TO" PURCHASES - Where the owner of the property wants out and you agree to take over paying the mortgage in return for you receiving the deed. All the necessary forms to proceed in a -Subject To- purchase.
- STANDARD REAL ESTATE PURCHASE AND SALES AGREEMENT
- LIMITED POWER OF ATTORNEY
- REAL ESTATE PURCHASE ADDENDUM AND DISCLOSURE
- COMPLIANCE AGREEMENT
- AUTHORIZATION TO RELEASE LOAN INFORMATION
PART 2: CONTRACTOR AGREEMENTS AND DOCS
A) CONTRACTOR APPLICATION- I wish I had this when I started out - it would have saved me a lot of money and heartache. Essentially an application, one page, but has all his pertinent information, plus background, plus referrals with phone numbers.
B) CONTRACTOR AGREEMENT - Seven parts. Use all seven. Get ready for battle.
- INDEPENDENT CONTRACTOR SERVICES AGREEMENT - Actual agreement, 3 pages, comprehensive.
- EXHIBIT A-SCOPE OF WORK - Absolutely critical to have a detailed description of ALL the work that is needed BEFORE the work starts. The devil is in the details. This form guides you through each part of the house. Written by yourself and then with the contractor. If there is not a complete 100% understanding of EVERYTHING that needs to be done, you will run into problems.
- EXHIBIT C-PAYMENT SCHEDULE - Pay as work is accomplished. Do not alter this schedule because they cry need.
- EXHIBIT D-CHANGE ORDER FORM - If there are changes, put it in writing, signed by both parties.
- EXHIBIT E-PUNCH LIST - Most-used part of the agreement. Go in Fridays with the Punch List with carbon and second page. Leave original with the contractor.
- EXHIBIT F-RESPONSIBILITY FOR DAMAGE - Just to make sure any damage they cause is their responsibility.
C) CONTRACT TRACKING - Mailed out to contractor's home after each draw. Outlines where they are in contract concerning money and time left to complete the work.
D) CONTRACTOR AGREEMENT FOR USE OF GIFT CARDS - We use Home Depot gift cards to fund some contractor's purchase of material. Be very careful.
PART 3: SPECIFICATIONS OF MATERIALS AND METHODS
A 30-page Rehab Bible! A "How To" book on rehabbing and maintaining a rental house. Includes 45 items of "ELIMINATORS"-things not to have in a rental house. For anyone who wants to rehab a rental house, this section is invaluable. Worth $2500 alone!
A) TEST OF SPECIFICATIONS OF MATERIALS AND METHODS - The contractor doing a rehab takes this test before receiving his first draw check. Just to make sure he has read it!
B) NOTICE OF UPCOMING INSPECTION - Mailed to alert tenant of municipal or other inspections
C) TENANT TURNOVER REHAB CHECKLIST - Helps the landlord identify all areas to be addressed by the contractor before next tenant moves in.
D) INSPECTION CHECKLIST - Used by handymen and contractors to identify all areas of concern while at the property. To be used before an upcoming inspection
E) MAINTENANCE REQUEST (MR) FORM - Mailed by tenants outlining things in need of repair. Landlord uses internally and forwards to handyman or contractor
. The Real Estate Professor, Baby!