Real Estate Investing Online | Virtual Closing
Updated: May 21, 2020
For a while now, the real estate industry has evolved to accommodate virtual services for those who do not reside in the place they want to invest in. As a matter of fact, realtors use tools from online encrypted document signing platforms to 3D mapping for virtual showings. The options are endless!
Some of the benefits of looking for properties online are, usually, faster market updates, paperless processing, and more options to look at than in person. This can play out great for an investor who resides in another state or even a different country. Nevertheless, investors need to look for the right realtors who have a process for real estate investing online.
If you have been looking for ways to do your real estate investing online, you have come to the right place! At the ROI Group, we have created all the processes that can help you take care of your virtual closing. We have been advocates of this change for a while now, and we are ready to provide you a positive experience online.
Steps to Real Estate Investing Online
The first step for every investment is UNDERSTANDING THE FUNDING METHOD. Are you going to buy the property cash, with a loan, or performing a 1031 exchange? Then, we can start strategizing for you. In the case of a loan, we will introduce you to 3 - 4 lenders who work with investors. We suggest you take the time to get different quotes on the mortgage. You can lock in your interest rate a few months out.
We will set you up with a CUSTOMIZED SEARCH, so you receive updates of properties that enter the market as often as you want. Plus, we send all our investors our top property picks to invest in Central Florida. You can sign up easily on this website.
We will schedule VIRTUAL SHOWINGS for each property, where we will take photos, videos, and 3D virtual tours (if available). This way you can see exactly what you could invest in through our eyes.
After you pick the property or properties you want to invest in, you will receive an email containing THE CONTRACT for electronic signature - please make sure we have the email addresses of anyone who will be signing the contract. NOTE: if this is a 1031 exchange, you need to provide the entity or name of the person who will act as the intermediary.
We will then introduce you to the TITLE COMPANY that will give you wiring instructions for the escrow deposit. That deposit is held for you in their secured escrow account until closing. This is your money, and no one touches it until you close. Also, the amount will be subject to each property's terms and conditions.
When the property is under contract, we will have a period of time for THE INSPECTION. Usually, this period is 15 days for inspection. However, it all depends on the negotiated terms of the contract. We recommend that you perform a professional property inspection, where they will check on every corner of the property for you. We work closely with the best inspectors in Central Florida. Usually, the service fee is according to the property size. Then, your agents will do a final walkthrough as the contract timeline is finishing. This way we ensure any repairs have been performed and the property is ready to go.
You will be introduced to the PROPERTY MANAGER, who will work on the rental and management of these properties. We have negotiated an 8% fee with a partner based in Orlando, FL. Plus, we have contacts for property managers in other areas of Central Florida.
We recommend you get HOME INSURANCE to protect your investment. We can introduce you to as many insurance companies for quotes. Rates are competitive and the average for most houses is about $600 a year.
We will post pictures of the PROGRESS of your home as it is being built/acquired. If being built, the permitting process is what takes the longest time as there are multiple permits. However, once that is complete and the house is being built it will take about 6-8 weeks to build total from start to finish; about 6 months total. On the other side, there are move-in ready homes in the market than can be closed on asap. In that case, we will send you final photos, when the property is ready to go on the market for rent.
The closing will take place wherever you are – it is called a MOBILE CLOSING. The mortgage company or the title company will arrange a mobile closer to come to you or the person who represents you in the US.
We will prepare your property with professional PHOTOS & VIDEO to be listed on all online renting platforms.
AFTER CLOSING, the house is formally put on the rental market. The mission is to have a renter interested before closing. This is the best-case scenario and what we aim for.
Are you ready to make moves anywhere in the world and start real estate investing online? Schedule your complimentary investment consultation today.