The Real Estate Closing – Policies and Procedures
It was quite the transition in my life to go from mom and wife to business mogul! It was a long and winding road for me to really develop a business mindset, especially one that felt comfortable to me in my own head. You cannot be someone else, but you are leaving your old lifestyle behind.
Be patient with yourself. Pay attention to what gets you excited in your new world. That’s where you are going to be most successful. That’s where to put your energy. Once you know where to focus, you will be better at treating it like a business because you will believe in what you are doing. You have to be on guard with your emotions. This is not an emotional business.
One thing that never occurred to me until I was attending an event at a real estate investment club is that I should have policies and procedures for my business. It seems insanely obvious now, but really, it never even occurred to me. However, much like a business plan, you can’t really establish these in much detail until you get some experience. I’ll give you an example of a procedure I have for purchasing a new property:
- Inform the title company this will be a remote closing. Documents are to be emailed and sent back overnight.
- Get wiring instructions for funds.
- If using a private money lender, contact a local attorney to draw up the promissory note and mortgage.
- Contact the insurance company and get coverage.
- Once email of documents is received, read carefully. Sign documents that do not require notarizing. Go to notary and sign the remaining documents in front of notary as needed.
- Go to Federal Express or UPS to overnight and return documents.
- Track closing progress with the title company.
- Call utility companies.
Now, why is this important? Number one, you don’t want to have to rethink this every time. It’s easy in the rush of the moment to forget something important. Number two, you are building your business so you can sell it. What? You have no intention of selling your business? Well, at a minimum someone needs to be able to step in and run it for a few weeks while you are on a beach in the Caribbean. OK?
Policies, practices, and standards of operation: document what works and revise it over time.
Financial freedom likely sums up what you are willing to do. Is it possible? Is investing in real estate your answer? It can be. You are going to have to work hard, especially in the beginning. You are going to have to be persistent. You are going to have to pick yourself up and push hard when you really don’t want to. You are going to fail a lot on the way to success. Success did not just fall in my lap, and it won’t fall in yours either. You must struggle and strive. It will be worth it.