6AH/FW Restoration PROPERTY ACQUISITION

Property Acquisition Job Description

Your job is the backbone of the company. You are the start of everything that the owners at FW Restoration LLC and the collective group at “6th Ave” believe in. Your job is to go make peaceful and restorative relationships with home owners in targeted neighborhoods with the purpose of acquiring properties for the owners of FW Restoration, LLC or other investment groups.

The goal when acquiring these properties shall always be to find a win-win-win relationship between the home owner (seller), the Contractor (you) and Company (us), and the end investor (buyer); all while making the neighborhood a little better than you found it. We want to leave a lasting footprint that is beneficial to everyone, including the people in the neighborhood around it.

Expectations

Contractor agrees to perform the following tasks pursuant to this Agreement, and other duties not specifically listed here that reasonably related to performance of these duties:

  • Abide by all Company Policies and Procedures as they now exist or may be amended, including the Company Mission Statement, Core Values, and Rules (titled 6th Ave Homes Handbook)

  • Abide by the Company rules and guidelines as they currently exist or may be amended. (titled 6th Ave Homes Handbook)

  • Abide by the policies listed below in this document for acquiring properties.

  • To treat the owner (seller) of every property you look at with the utmost respect. Restoring dignity to this person and creating a positive relationship is more important to the Company than acquiring the property.

  • To handle conflict with peace, always notifying the Owners of the Company.

  • To manage everyone’s expectations, even if it’s bad news.

  • To be an expert in the ARV and the real estate markets of targeted neighborhoods.

  • To grow and become an expert in construction costs and estimates.

  • To be honest with the investor (buyer) about construction costs and the quality of the investment they are purchasing.

Personnel Policies and Other Agreements

Marketing and Advertising Rules and Requirements:

All marketing for acquiring and advertising to acquire properties is ultimately the responsibility of the Contractor.

The Company will designate funds for flyers, bandit signs, or letters and papering, but the use of such funds will be a separate agreement between the Company and the Contractor.

The Company will designate funds for software and programs for locating owner information, but the use of such funds will be a separate agreement between the Company and the Contractor.

A full time Contractor is expected to perform the following while attempting to acquire properties:

  • Call 200+ owners of homes per week OR knock on a minimum of 75 houses per week.

  • Reach out to 3+ investors of investor owned properties per week
.

  • Reach out to 5 realtors per week that appear to be distress listings (expired or cancelled listings)

  • Attend the Wholesale weekly meeting with the team every Friday at 11:00am

  • Work in the pre-concluded wholesale target areas until instructed otherwise.

  • Keep up and add to the wholesale property database when required

  • Keep up and add to the customer/investor database when required

  • Keep a personal database with leads and follow up calls

  • Follow all policies set forth in the independent contractor agreement

  • Follow all policies set forth in the 6th Ave Homes Handbook

A part time Contractor is expected to perform the following while attempting to acquire properties:

  • Call 100+ owners of homes per week OR knock on a minimum of 40 houses per week.

  • Reach out to 1-2 investors of investor owned properties per week
.

  • Reach out to 5 realtors per week that appear to be distress listings

  • Attend the Wholesale weekly meeting with the team every Friday at 11:00am

  • Keep up and add to the wholesale property database when required

  • Keep up and add to the customer database when required Keep a personal database with leads and follow up calls

  • Follow all policies set forth in the independent contractor agreement

  • Follow all policies set forth in the 6th Ave Homes Handbook

Customer Interactions

  • When interacting with any buyer, seller, investor, home owner, or any other 3rd party customer, the Contractor shall always be and remain professional. The Contractor shall try and maintain the core values and Code of Conduct of the Company

  • For licensed realtors, you must represent and disclose that you are a licensed realtor with your current brokerage.

  • When possible, disclose that you are contracted by the Company to acquire properties.

  • Do not share addresses for available properties, marketing or sales techniques, or property sources, over the phone to any individuals that you have not met or plan on meeting.

  • When knocking on doors, the Contractor shall always obey No Trespassing signs and be knowledgeable and obey all of the state and local laws when walking up to the property.

Acquiring the Property

  • If you are a licensed realtor and before entering into a Contract, you shall disclose you are an agent and disclose the name of your brokerage as well as include the IABS in your contract and email contacts.

  • Before entering into a written Contract, you shall get verbal permission from the owners of the Company. If you cannot get in touch with the owners, you may go under contract but shall make every means possible to notify the owners as quickly as possible.

  • At no time can you enter into a written contract to purchase a property without an option period unless written permission is given from the Owners.

  • The minimum option period shall be a 7 day period unless permission is given from the Owners. The preferred option period is 20-25 days. The preferred option money amount is $25-$50.

  • If you are a licensed real estate agent, you will act on behalf of the Company as your buyer. You shall use the standard TREC forms for purchasing the property and shall write in the buyer as “FW Restoration, LLC and/or assigns” unless the owners request another name to be written in the contract. In the special provisions section, you shall write the following: “Seller and current lien hold acknowledge that price could be below fair market value. Buyer is an investor and reserves the right to resell the property at any time and for any price at its sole discretion”.

  • If you are an unlicensed realtor, you are not allowed to get paid for a real estate transaction by the Company. You will only get paid by either assigning the contract for the fee specified in the contract OR you will assign the contract to another buyer AND compensate the Company 30%. You shall use the standard TREC forms and write “YOUR NAME and/or assigns” in as the buyer. You will write in the special provisions section, “Seller and current lien hold and acknowledge that price could be below fair market value. Buyer is an investor and reserves the right to resell the property at any time and for any price at its sole discretion.”

  • Every signed and executed contract by a licensed realtor will be signed by the owners of FW Restoration, LLC. last and a copy shall always be sent to the title company and the owners of the Company. For a non-licensed Contractor, the buyer shall always be their personal name.

  • The Contractor is responsible for collecting the option money and earnest money from the owners of the Company or the other buyer/investor and getting the checks and the signed contract delivered to the seller and title company. You will only be able to get the earnest money once a copy of the signed contract (and IABS if applicable) is sent to the owners and the transaction coordinator (currently Victoria).

Although not required, our preferred formula used by this Company to establish offer prices for acquiring properties is listed in the example below:

o Fully rehabbed ARV is $150k

o ARV x 0.8 = Sales Price $120k

o Then subtract Repairs needed = $20k

o Then subtract your fee = $10k

o Gets you to your offer price = $90

  • The goal of the Contractor is to create the opportunity to make minimum of $6,000 NET profit off of each property whether that is for an assignment or for a double close where the buyer pays for all closing costs.

  • Before leaving a property with a signed contract, the Contractor shall make every effort to take high quality pictures of the property.

  • If the Contractor is a licensed real estate agent and the seller is asking too much for the property to wholesale or assign or double-close, the Contractor should look for the opportunity to sell the property. If the Contractor gets a listing agreement, you shall defer to your normal commission split with your brokerage that holds your license.

Showings

  • The Contractor must always be present to provide potential buyers access to the properties and shall stay there until every buyer has left and will lock up the property, unless you have received written consent from the owner of the property and the owners of this Company to do otherwise. Nothing shall be removed from or damaged in the properties.

  • If the Contractor is a licensed realtor, the Contractor is also bound to abide by the state laws and rules for licensed real estate agents regarding showings.

  • If access is on a lock box, do not share information with other buyers. The information will only be allowed to give to other Contractors or employees of the Company.

  • Showing times for the property will be sent to all Contractors and employees of the Company at the same time.

  • The acquisition Contractor may limit the number of showings if needed and will have the authority to establish the date and time and length of all showings

Selling the Property

  • The owners of FW Restoration, LLC. will always will have the first opportunity of purchasing the property before it is marketed to any other buyers.

  • If the Company purchases the home, the Company assumes all of the responsibilities of the contract and pay the Contractor an assignment fee based on the compensation set in this agreement.

  • If the Company does not want to buy the property, the Contractor is then free to market to the network of buyers from the Company’s database and network of investors. The Contractor will market the home for sale as an assignment or double close.


  • Every assignment that the Contractor signs will be signed and expire within the option period, no later than 1 day before the option is done. Ex: day 9 of a 10 day option.

  • Every double close contract and/or assignment will have the buyer/investor put a minimum of $5,000 down; non-refundable; or more if the earnest money is more than $5,000. There are no exceptions to this rule.

  • When assigning a contract or double closing any property with/to any investor (not FW Restoration, LLC.), you shall include the following documents:

    • The original TREC 1-4 signed contract from the original seller

    • The secondary contract (if a double close)

    • The assignment form (if an assignment)

    • Addendum 1 – To Purchase and Sell Agreement

    • IABS Form

    • Notice of Non-Representation To All Potential Sellers and Buyers of Real Estate

    • Receipt of Funds

    • Modified Seller’s Disclosure

  • It is the responsibility of the Contractor to coordinate getting the signed assignment or double close contract and additional earnest money to the title company.

  • If the Company does not want to buy the property, the contract is not assigned, or is not set up for a double close, the agent/guide will responsible for cancelling the contract and sending a cancellation addendum. If the Contractor forgets to cancel, the responsibility of the option/earnest payment falls upon the Contractor and will have to reimburse the Company for the loss or pay for it him/herself.

Closing

The most important task for this section is Managing Expectations. The Contractor is responsible for the following:

  • 3 days Before Closing: Verify that everyone is clear and good to close from all parties involved. Communicate any changes that could affect closing with the seller if necessary and buyer.

  • Day Before Closing: Call the buyer to verify Title Company has scheduled the closing. Call the title company and make sure they are clear to close.

  • Day of Closing: Communicate to buyer when possession has taken or is going to take place. Deliver keys or any other necessary documents.

    ALL Contractor fees or commissions that are involved within a transaction of this Company, whether internal or external, must be represented and disclosed on the closing statements and be in compliance with the latest TREC rules regarding real estate in Texas. There shall be no payments outside of lawful real estate transactions.