Having the proper structure for your fix and flip, new home construction, or any real estate related investment business is one of the main pathways to success. What is included within that necessary structure is having adequate documentation to use to properly run your business. It is imperative that you get everything in writing, and the written documentation is such that it covers all of the “what if’s”, and protects you and your company. The documents that we use are time tested and were designed and created over many years. As we saw the need to not only have a very specific process, we also saw the need to mitigate problems and issues. These documents have been vetted and validated by our legal counsel, and, for the 1st time, are being made available to the general public.
So many of my peers have come to me with issues and problems, or they don’t know where they stand financially on a project, or a sub-contractor has placed a lien on their property because there was no written documentation, or the documentation they did have was not sufficient. These documents are what we use in our business, from finding a property, securing it, estimating it to see if the numbers work, getting bids from subs contractors as well as locating and properly vetting new sub-contractors. We even give you the home warranties that we use on the new homes we sell or rehabs that we sell.
Here is a list of the documents you get so that your business is protected and so you have the proper documentation to run your business from A to Z:
- Mailing piece examples for buying property and finding sub-contractors
- Purchase and sale contract
- Assignment contract
- Line item sheet budget
- ProForma
- Construction contract and new sub-contractor checklist and associated documents
- Checklist for the sub to fill out
- Letter of understanding to sub
- Indefinite Quantity Contract which allows you to have a sub sign a 1-time contract and all other business will be through simple purchase orders
- Copy of Purchase order
- Copy of Lien Release
- W-9, so you can send out 1099’s at years end per requirements
- Build to suit contract; This contract is what you enter into with a homebuyer when you are building them a new home; presale
- Draw Request to your lender
- New Home Warranty for new construction
- New Home Warranty for rehabs
- Homebuyer protection act forms. (confirm requirements in your State)
