Tip: Document Checklist

In yesterday’s post, I discussed the process I go through every time I get a house under contract. Documenting and following a clear process allows me to get accustomed to a routine, and also allows me to delegate the routine to others who may not be as familiar with the business as I am. In other words, by documenting clear processes, my business can be more self-sustaining, and I can focus on other — more important — tasks.

As a follow-up to yesterday’s post, I wanted to mention all the the documents that I collect throughout my property acquisition process, and that I save as part of my business records. These documents serve a range of purposes — from ensuring that I have the necessary information for my accountant to putting myself in a strong legal position should I have issues with my contractors. Surprisingly, some of these documents tend to be difficult to get ahold of once a project is complete, so I make sure to collect them along the way.

Here is the list of documents I always gather and maintain, or that I have others in my company gather and maintain…

DOCUMENT CHECKLIST

At Binding Contract

• Signed Purchase and Sale Agreement
• Purchase and Sale Addendums
• Contract Amendments
• Full MLS Listing
• Comparable Market Analysis (CMA)
• Current Tax Records

During Due Diligence

• Inspection Report(s)
• Rehab Scope of Work
• Rehab Material’s List

At Closing

• HUD-1
• Good Faith Estimate (GFE)
• Warranty Deed
• Insurance Binder

Prior to Starting Rehab

• Independent Contractor Agreement(s)
• Signed W9’s
• Signed Scope of Work
• Signed Materials List
• Insurance & Indemnification Agreements

At Sales Closing

• Signed Purchase and Sale Agreement
• Purchase and Sale Addendums
• Contract Amendments
• HUD-1

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