Buying an Investment Property through Awning
The first question we always get is, how does Awning make money? The answer is simple — we represent you, the buyer, in the real estate transaction and therefore earn the buy-side commission paid by the seller. This means that as the buyer, you will not pay additional fees by working with us over a traditional real estate agent.
The second most common question is, what should I expect about the process of buying real estate with Awning, and how long does it typically take?
Here it is, in less than 10 steps:
1. Meet your Awning Advisor (30 mins)
Awning Advisors are top performing real estate agents, trained to help investors find and buy rental properties that meet their investment goals. After a 30 minute call with your advisor, you’ll have a better idea of what type of investments are right for your goals and you can start reviewing properties in your feed. Your advisor is there with you through every step of your home investment journey.
2. Receive matched properties in your feed (daily)
As soon as your account is set-up, you can start looking through properties on your feed. New vetted deals are added to your feed hourly. You can give us feedback about the properties you see and we can adjust your feed based on that feedback.
3. Get pre-approved for a loan (5 minutes — 24 hours)
Your Awning Team will introduce you to the right lender based on your financial situation. Once pre-approved, we will be able to start putting in offers on your behalf. Our partner, Better.com, can get you pre-approved within 5 minutes. Through our other non-traditional lending partners, we can also help those with unique financial situations get approved within 24 hours.
4. Make offers (3 minutes)
When you’re ready to commit to a property, you can start an offer draft right from the property’s page. You can adjust your offer terms within our platform. If you have any questions for your advisor, you can contact them through the Messages tab or through the message feature on the property page.
5. Get an offer accepted (1 day — 1 week)
Given the nature of this market, most of our customers are having to put in multiple offers before getting one accepted, often above listing price. Don’t worry about the competition — we’ll recommend you an offer price that is in line with market value based on recent sales. You can review the offers you’ve written in your offer tab. Once you get an accepted offer, we will contact you with a timeline and details on next steps to close within 30 days.
6. Go into escrow (30 days)
Over the course of 30 days, we will coordinate the following on your behalf:
a. Home Inspection: Your prospective home will be inspected. If the inspection reveals that more work needs to be done than originally anticipated, we have the right to request a price reduction during this phase.
b. Earnest Money: Earnest money is a good-faith deposit you make on a home, which is usually 1 to 3% of the purchase price. The money is deposited after the seller has accepted your offer and is usually kept in an escrow account. When the sale closes, you can keep the cash or apply the money toward the purchase.
c. Option Fee: The option fee is money paid by you to the seller for the option to back out of the deal if you no longer wished to go through with it. Option fees range from $100 to $500.
d. Insurance Quotes: Through our partner insurance providers, we’ll be able to get you the right coverage for your rental property.
7. Meet your Property Manager (30 mins)
If everything looks good with the property after inspection, we will introduce you to two of our property management partners while you are in escrow. These local experts will help you get your property tenant ready, find tenants and manage the day-to-day operations of your property.
8. Close (1 hour)
Congratulations! While closing timelines can vary depending on a lot of factors, 30 days is how long it usually takes from your offer being accepted to the home being yours. This is the day your property manager will receive the keys to your home and start making any cosmetic renovations (if needed) to get your property ready for tenants.
9. Sit back, relax and start earning!
The average time it takes for a property to get filled by tenants can vary, but typically, you can expect to receive your first rent check within two months of closing on your property.
Schedule a call with an Awning advisor to get started.