The Process of Working With Aurora Real Estate Investment Services
1) Provide us with a commitment package
The purpose of the commitment package is three fold: 1) It shows that you are serious about working with us and 2) It shows that you are qualified to do a deal with us. 3) It gives us the documentation we need to submit an offer for you when we find the property that fits your needs.
*Once we receive the commitment package, we can set you up for a personal tour and we search for deals that meet your needs.
You get to see the deals, review them and make a decision on them 24 to 48 before they are sent out to our general e-mail group.
The commitment package consists of:
– PROOF OF FUNDS to complete a deal (A statement containing the funds that you will be using). This statement must come from the entity that is going to purchase the property
– $1,000 CHECK (Once again, from the entity that is purchasing the property)- You do not make this check out to anybody and this check does not get cashed or put into the bank. This check will be used as your hand money (deposit) when we find the property that you want to purchase. The reason that it does not get made out to anybody is that it will get made out to the real estate company or owner of the property when we find the one you want to purchase.
– Copy of drivers license (all buyers and/or owners of the company purchasing the property)
– LLC OR ENTITY PAPERWORK showing you are certified to purchase for the entity and are designated to make these decisions- MUST INCLUDE THE OPERATING AGREEMENT(only if entity is being used to purchase the property)
***Remember the check, proof of funds and paperwork must all be in line with each other
– BRIEF DESCRIPTION of the type of investment property that you would like us to locate for you
Mail the commitment package to:
Aurora Real Estate Investment Services
701 Harriet Street
McKees Rocks, PA 15136
2) Once we have the commitment package we start the process of locating your investment property
– WORK WITH BROKER(S) TO LOCATE POTENTIAL INVESTMENT PROPERTY – We use our resources to locate undervalued investment property opportunities. On average, we must look at 30 to 50 deals before we find one that meets our guidelines.
– QUALIFY AND ANALYZE EACH POTENTIAL INVESTMENT PROPERTY – During this process we look at the following factors: LOCATION / NEIGHBORHOOD, CONFIGURATION AND STRUCTURE OF BUILDING, PROXIMITY TO BUSLINES, BUSINESS AREAS, SCHOOLS, ETC.., RENOVATIONS NECESSARY TO BRING PROPETY UP TO CITY CODES AND OUR STANDARDS, THE COST OF RENOVATIONS, RENTAL INCOME AND RENTAL EXPENSES.
3) Once we have analyzed and qualified the investment property we will then send all of the information to you in an e-mail for your review
The e-mail includes the breakdown of all of the information mentioned in step 2 along with any other information we can provide to assist in the decision making process.
WE WILL SUGGEST THE STARTING OFFER PRICE AND ALSO THE MAXIMUM THAT WE SUGGEST BE PAID FOR THE PROPERTY.
4) You make a decision to either purchase the property or not
If you decide to move forward with the purchase of the investment property, we will then put together a purchase contract to offer to the seller. The seller will usually respond within 24 to 48 hours. If they accept the offer we will wait for the contract to be executed by them. If the seller gives us a counter offer, we will then consider their offer and either accept it or send back another counter offer. We follow this procedure until a final price and closing date are agreed upon.
5-A) Once the final price and closing date are agreed upon and we have an executed contract in hand, we then forward the executed contract to the title company
– The title company researches and clears title, gathers all tax information and completes all duties necessary to complete the purchase.
– We inform the title company of the process by which we intend to complete the purchase (power of attorney, e-mail package to you or in person closing).
5-B) During the process mentioned in 5-A, a final renovation contract is drawn up for the buyers review
The buyer and Bencho Aurora Contracting Services, LLC will be in complete agreement on the terms and conditions prior to the purchase of the investment property.
6) Final closing date
– Buyer receives, reviews and signs all legal documents to purchase the investment property.
– Buyer signs renovation contract
– Buyer authorizes and executes payment for: The purchase of the property, the finders fee for Bencho Aurora Contracting Services, LLC and the agreed deposit on the renovation contract.
* Upon receipt of funds by the title company: – The buyer takes ownership of the property – Bencho Aurora Contracting Services, LLC provides a starting date and estimated ending date for the renovations. A starting date for the renovations can only be provided if the initial deposit for the renovations is included in the funds at closing. If the deposit is not included at this time, a starting date will be provided when the initial deposit for renovations is received by Bencho Aurora Contracting Services, LLC.
7) Renovation begins on starting date
– Weekly notes and pictures are provided by Bencho Aurora Contracting Services, LLC to the owner.
– Additional draws are required according to the renovation contract terms.
*Final payment is due upon owners final walk through or hired inspector walk through (if desired by owner).
8) Two weeks before completion of the renovation, the owner finalizes contract with the properly management company
Bencho Aurora Contracting Services, LLC will notify the property management company when the property is ready for showing and rental.
9) Property Management Company
– Advertises property for rental
– Screens and qualifies potential tenants
– Places tenant(s) in the property (collects deposits, rents and signs lease(s))
– Performs monthly duties (collects rent, takes phone calls, sends owner a monthly statement along with the associated check)
– Ask for a copy of the management agreement to see all duties performed by the management company.
AS YOU CAN SEE IN STEPS 1 THROUGH 9, WE HAVE BUILT A SYSTEM THAT IS BUILT TO SERVE THE INVESTOR, SELLER, TENANT AND ALL PARTIES INVOLVED. A WIN/WIN SET OF CIRCUMSTANCES AND BUSINESS TRANSACTION HAS OCCURED AND WE CHANGE NEIGHBORHOODS ONE HOUSE, ONE DUPLEX, ONE MULTI UNIT AT A TIME. GOOD HOMES, GOOD PEOPLE.