This is a brief overview of the buying process, each transaction is different but the following details will give you a reasonable idea of what you can expect.
Pre-Offer Cash
You will need PoF (proof of funds) and an EMD (earnest money deposit).
We need the name(s) you want on the deed and your current mailing address and telephone number.
Pre-Offer Finance
If you intend to finance we require a pre-qualification letter from your lender and an EMD (earnest money deposit).
If you intend to use your own bank make sure they lend to short term rental investment properties.
Also read Foreign National Financing.
We also need the name(s) you want on the deed and your current mailing address and telephone number.
Proof of Funds
PoF: Proof of funds is required by the seller in order to submit an offer.
A certified letter from your bank, investment account or other verifiable depository or a current balance statement will do.
The letter would state you actual balance of funds that is available is preferable. It should also be dated within the last 30 days.
Alternatively, a balance statement from your bank indicating that you have enough money to cover the offer will also work. (blank out the account number).
A seller will not accept an offer without proof of funds or a per-qualification letter from a bank. You need to get us this first.
It also gives us the ability to make a quick offer on a property should something come on that is suitable and may move quickly. We’ve seen properties sell the day they are put on the market so being ready and able is in your best interest.
Great deals come and go a lot quicker than bad ones!
Read more on Proof of Funds
Ernest Money Deposit
EMD: In many cases 5% or 10k may be sufficient.
The EMD money gets wired to the title company handling the transaction where it is held as a credit to the buyer if the purchase completes.
Make sure you have your funds in an account that can wire to a US bank.
There may also be transfer fees to wire, make sure the total needed for the deposit amount is wired exclusive of fees.
Money exchange.
If you are an international investor we suggest you set up a FX account ASAP. It will save you money and can help avoid delays and international transfer issues. Banks do not have good exchange rates but a FX account will save you several points on the exchange rates which can account for thousands of dollars.
This is something we need to set up in advance so when you are ready to buy we’ll get our FX associate to get in touch with you regarding saving you money on foreign exchange rates. Read This for more on foreign exchange.
Property overview
If you find a property or properties you want to make offers on we can make a date to visit or we can go visit it and shoot a “walk-through” video for you to look at if you do not intend to visit. We’ll also make notes of condition and appliances so you can get a full clear picture of the property.
The offer
If you like what we see we will draft up an offer on a FAR-BAR “as-is” contract, which is a standard contract approved by the Florida Bar for residential real estate transactions and email that to you. or we can send electronically. You will sign and date and initial all pages and return.
There are also some standard state and Broker docs for you to read and approve.
We will then submit the offer to the agent for the property and they will present it to the seller who will accept, reject or counter.
We will let you know the outcome of our offer and we move on from there given the reply.
The counter
In many cases the seller will counter the original offer. You have the option to accept, withdraw or counter back.
Executed contract.
One we are returned an executed contract we are “under contract” and the process of making sure the paperwork is in order, the property has a clear title and all discovery is performed. It’s also the period when we will inspect the property.
The executed contract is sent to the title company and we begin the title work.
Also read Under Contract.
Inspection Period
If the contract is executed then we will have an inspection period, usually 14 days to have the property looked over by a certified home inspector. We will set up the inspection and have the full report sent to you within a few days of the contract being executed. The fees vary but a ball park is about $400.
Our contract will include the option for you to remove yourself from the deal for any reason during those 14 days.
The closing.
The closing process is called “mail-away” unless you specifically want to be here for it. It’s a simple process that requires you to be able to receive the paperwork either by email or fax before or on the day of the closing. You will need to have a notary if you are financing, if you are paying cash it’s unlikely you will.
Make sure you prepare a notary well in advance.
Once completed you can send it back the paperwork to the title company.
You will be given instructions to wire the remaining funds to complete the purchase and you will be the proud owner of a vacation home in Orlando!
We will try to accomplish this before the scheduled closing date.
After you buy.
We have a substantial list of excellent individuals and businesses who will help you from furniture packages to property insurance and anything else you might need as you move forward.
As a vacation home specialist and not just a Realtor we take pride in being able to offer you the best professional knowledge in both the real estate and the business aspects of your investment so the process of purchasing and setting up your property to generate income is both smooth and easy.
Please contact us if you have any additional questions.