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Wrapping up your deal before the sale

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Buying a property from the homeowners before the sale is a standard seller-to-buyer transaction. If you’ve ever bought a house (and you should be a homeowner if you’re investing in real estate), you know the drill:

1 Present your offer to the homeowners in the form of a purchase agreement.You may need to work through a series of counteroffers to agree on a price and terms.

2 Have the property professionally inspected.

3 Order title insurance to protect yourself if the title has any hidden claims against it.

4 Sign the papers at closing.

5 Take possession of the property on the agreed-upon date.

Because you purchased the property directly from the homeowners, they have no right of redemption, so you don’t have to wait around for several months. You can move into the property immediately, renovate and sell it, or turn it into a rental unit. See Part 5 for details on profiting from a property after you take possession of it.

Foreclosure Investing For Dummies

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