First off I would like to thank everyone here on REIClub for all their insight so far. I’ve been fortunate to have found this forum! I have secured two private investors that are willing to invest in deals that I found and execute. I am interested in doing fixes and flips and I feel that the best way would be to start out small of course. I’m looking to do a single family home 60k max with 15k max repairs and flip it for a minimum 25k profit. I’ve come across a few potential deals but they have all been to good to be true. Deals isn’t what this post is about though, I just wanted to give you an idea of size. These investors want a very detailed plan once I find the deal with a solid exit strategy and figures on how there investment will be returned. I am very familiar with the overall fix and flip concept but I need to make sure I am clear on everything so I can move forward when I find a great deal.
My understanding of the process is this, once I find a deal, run comps, visit the property with a contractor and do my due diligence. A purchase contract is signed between myself and the seller, at this point I give them my downpayment. In this case since this deal will most likely come from a wholesaler it’ll be a cash sale and 10% will be due. Then the purchase contract is sent to the title company along with a copy of the check and we wait for a closing date to be chosen(it’ll be within 10 days, the investors I am working with would be paying cash and there would be no financing involved) Then I show up to the closing with a real estate lawyer and the reminder of the principle plus closing costs in a check. In return I receive the deed to the house along with all sets up keys.
Now I own the house, I immediately bring in the contractor that I brought with me to look at the house. They do the work that is needed and I check in on the project every coupe of days. Once the work is done, I get the home cleaned by a professional cleaning service and I put it up for sale. I would be selling in on my own, using online services to get it on MLS. I figured I could so this easily since I would putting this home up for less then FMV. When I accept an offer from a buyer I bring a real estate lawyer to closing and they take care of my side of things. At closing I had over the title, keys and I receive a check for the agreed on price.
Questions I have:
How much do R.E Lawyer cost for closing services?
Do you get a home inspection on every property you flip and how much are they?
Can you get a contractors bid on a home before you’ve purchased it? If so for a small job like 10 or 15k would you just find a smaller handy man or contractor to do it then going with a general contractor that will be more expensive?
What is the best home owners insurance for flips?
What about title insurance, is that part of the closing costs or an extra cost?
How much are title search services?
What is a good exit strategy? Making sure there is at least a 30% cushion when you buying?
Is there anything I am missing or have forgotten?
Thank you all in advance for your help! In excited about doling my first deal and I just want do it the right way.