Tip: Document Checklist

December 16, 2008 · 2 comments

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…


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


2 responses to “Tip: Document Checklist”

  1. Rowen says:

    Just wondering what is a W9 I found a link to the IRS but what is the form for?

  2. J Scott says:

    Rowen –

    A W9 is a form provided by the IRS that each of your contractors need to fill out one time. The form captures their contact information (name, address) and their tax id number (either social security number or company tax id).

    This information is used at the end of the year to send out 1099 forms to your contractors. 1099 forms indicate to the contractors (and to the IRS) how much money you paid the contractors, so that everyone knows how much money should be coming from the contractors to the IRS in taxes.

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