So now that your Real Estate Deal has closed...WHAT’S NEXT?

I am sure that you already know the scenario. The momentum builds up, your paperwork is all in place after rushing for last minute signatures, etc., you overnight your package in and without you even having to be there, you are the proud owner of a new addition to your real estate portfolio. Now that the smoke clears and everyone goes home from the closing table, you may be left with the burning question…. "Now What?"

After all the adrenaline and getting to the closing table which takes a lot of patience, attentiveness, organization, etc., you may feel a bit of a let down. Not to worry! Amongst all the excitement of now being the proud parent of a new born project (at least new for your portfolio), you should not forget that there are still items and tasks that need your attention.

Immediately After the close.

After you leave the closing table (if you were even there at all), one important thing that you should make sure that you have is a copy. A copy of what, you may ask? A copy of everything that crossed the table during closing, especially anything that you put your signature on. While this may be a common sense item, it is amazing when I talk with clients and members of our group who say that they did not get a copy. If you did not get it right after closing, then make sure that you request a copy from the group that coordinated the closing, whether it is the attorney, title company, etc. This is something that could save a lot of headaches in the future.

A PARTICULARLY important part that you will need is called the HUD, and is the long legal form that shows all of the closing costs and other money transfers. The reason this is so important is that you will need to provide a copy to your accountant at tax time, or if you do you own taxes, you will need the facts and figures.

Hopefully this next step should have already been started during the initial reservation or letter of interest stage. Again, this is a common sense item but still very important. Make sure that you have a separate file or folder that you keep for this new project. Keep it identified so that you can easily go back and find the project that you are looking for. However you do it is up to you and I am sure that everyone has different ways to organize their files (by State or location of project, address, date of acquisition, type, etc.).

You may even want to have a file for the project and subfolders for individual items such as initial deposit (copy of completed reservation form, check, unit selection criteria, etc.), loan application, closing papers, and folder for post-closing events (such as loan payoff, insurance, taxes, etc.)

The good thing is that you have time; time to get things straightened out and prepared.

Don't Forget the Essentials Whether or not you are running your real estate projects through a company (i.e. you have set up an LLC or other company for the transaction(s)) or you are doing this individually, these next items are essential in having a successful real estate project/experience.

Accounting – While the extent to which the following applies will vary according the number of projects you have or the complexity of your business, etc., doing it now will save a lot of headaches, especially during tax time and when you go to sell your project.