Here is the final post for this topic:
Now it’s time to meet with the owner and present the purchase contract
Your purpose at this meeting is to get all your documents signed. The owner might have questions, but the owner should not have any objections to your proposal if you have been honest and thorough during your earlier meetings. You will have discussed a variety of situations with the owner and provided possible solutions. Be honest and sincere and remind them of all the benefits of selling to you.
If they suddenly seem “cold” to your proposal, remind them if their home goes to the auction they will get nothing and their credit will be ruined. Let them know the deal must be mutually beneficial to both parties and that you are assuming many risks. If they are still hesitant, tell them that no one will offer them any better situation, and the most “seasoned speculators” will rarely offer more than 70% of a reasonable market value. Describe what a reasonable market value is in today’s market. A calm and strong voice will help to convince them you are right. Get their signatures and give them an idea of how the transaction will progress.
Take the signed purchase contract to the Title Company and open escrow
An escrow/title company, who acts as a third party, can manage the transfer of money and property ownership. This should be a fairly smooth process if all the financing and terms are solid.
Any good purchase contract will make closing the deal contingent on a full title search conducted by a title company. The purchase agreement should also allow for a professional inspection of the property before closing the deal. The standard AAR (Arizona Association of Realtors) contract does both of these things. You can cancel or renegotiate the deal if there are “undiscovered” title issues or serious physical problems with the house. Follow-up with the Title Company and owner to resolve any issues that arise and you will soon own the property.
One more thing
The owner may not vacate the property according to their agreement. But you are thinking …“they have to leave.” Well, you are right … but you may have to EVICT THEM if they do not leave on their own. This process could cost you another $300 - $400 and could take another 2-weeks. That is a whole different process and topic that we will not cover here, except to say it involves a legal notice, a process server, an eviction attorney, and the county constable.
CONGRATULATIONS
You now are an “inexperienced expert.” You know the fundamentals and can talk about the process with anyone and sound reasonably intelligent on the subject. If you haven't done so, read my 6-part PUBLIC AUCTION series.There is high quality information and INSIDER TIPS that will give you the edge with PUBLIC AUCTIONS.
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