WOW! What a whirlwind past couple weeks. Here's the big news: Today, I received the final closing package from the Title Company with all signed documents. They're saying I should get the Owner's Title Insurance Policy and Deed via email in a couple weeks. I'm officially a rental property owner! Here's a quick recap of how things went down:
December 8 - I sign the Purchase Agreement and am introduced to Danny for Insurance. He shoots me over a number of questions/items he needs:
-The purchase price of the Property?
-Is the property 1,2,3 or 4 family dwelling?
-Is the property Vacant or Occupied?
-Cost of the rehab (If Any)?
-A copy of pages 1 & 2 of the settlement statement (HUD-1) *You will not get this until you close*
-Complete name the policy is to be issued?
-Complete mailing address of the policy holder?
-D.O.B. and SS# of policy holder or person controlling the LLC.
-Contact Phone # of policy Holder.
-The date policy should be effective.
-The amount of coverage you desire on the property, If you have made a determination on that.
Then, I'm introduced to Daniel for Title work to start the closing process. He requests a few things as well:
-The address of where you would like the property tax bills sent.
-Your Telephone Number for the Indiana Sales Disclosure.
-The date you will be ready to close on the property.
December 12 - I finalize Insurance on the property with Danny. As it'll take a few months to renovate, I get a $50,000, 3-month vacant policy with rehab endorsement for $256.25.
December 14 - I receive closing documents, wire instructions, and title work.
December 15 - Receive the Scope of Work (renovation details), which I'll touch on in Part II.
December 16 - I send over closing documents and wire money. I officially jumped in. No going back now...
-As a "first-timer" there's a ton you will not know about what it takes to close on a property. Look over every single document you receive and ask questions if you're unsure about anything. Reach out to connections that understand the real estate business. Reach out to friends that have purchased houses in the past. Reach out to your old friend's father who is a realtor. Reach out to anyone that can offer assistance and ask questions on the BiggerPockets forums.
Now that I have a property, let the renovations BEGIN!