One of the most common questions by some of our investors are on the payments that are needed to reserve or book a property.
To book and reserve a property and take the property off market are two payments, one payment of $3,900. This is our arrangement fee. And a $2,000 deposit which is sent to the title company in the relevant state. ( This is called an Ernest Money Deposit )
Even though these are not large payments clients see these as a commitments which they are.
One of the questions that come up quite a lot is if the property inspection does not meet the clients expectations or there is something majorly wrong with the property then what happens with my downpayment and the fee paid to Global Investments.
So let me cover this.
Once a client pays the fee and the Ernest money to the Title company we sign a purchase contract. This purchase contract is subject to a full independent inspection. This is where we would check the main fundamental items in the property. Roof, foundation, electric, plumbing and also we check for any structural movement. If for whatever reason we don’t like something in the inspection we can simply cancel the sale and any funds paid are fully transferable to an alternative property of your choice. ( This its very rare as our suppliers give us excellent properties. ) Saying that normally like with any tenanted house the inspection can bring up minor maintenance items. Once we are happy that the house is in good standing and all the main items are fine we would ask the seller to take care of any maintenance items that are brought up by the inspection before we close.
So even though you are making a financial commitment you are not committing to buy that specific house until we are 100% happy with the inspection. What you are committing to is buying a house in the US.
We cover every aspect in the process and if there is something we do not like about the inspection then we would actually advise you to cancel the contract and we can start sourcing a more suitable property and like I said there is no cost to the client for this.
These investments are long term 5-10 year projects so if it takes a few extra weeks to find the right house for you then this gives our clients the peace of mind that we have their best interests at heart.
Mike Moodie – CEO Global Investments Inc
