The New Deal Checklist: From Lead to Locked-Up Contract

You've got a fresh lead. Now what? Without a repeatable system, it's easy to miss a critical step — and that mistake can cost you the deal. This checklist walks you through every stage, from first contact to a signed contract, so you never skip a step.

Key takeaways

• Qualify leads fast using a simple scoring system to avoid wasting time on bad leads.
• Analyze after-repair value (ARV) and repair costs accurately to set a profitable max allowable offer (MAO).
• Verify ownership, liens, and title issues before making an offer.
• Lock up the deal with a solid contract and clear assignment terms.
• Build a repeatable process that works for every lead, every time.

Phase 1: Initial Lead Qualification

How do you quickly qualify a new lead?

You need to separate serious sellers from tire-kickers in the first few minutes. Use a simple scoring system based on motivation, timeline, and price expectations.

• Ask the seller why they're selling. Look for motivated reasons: divorce, job relocation, inheritance, financial distress.
• Ask about their desired timeline. A seller who needs to close in 30 days is more motivated than one willing to wait six months.
• Ask about their price expectation. If they're asking for full retail, they may not be motivated enough.
• Score the lead: 1-10 based on motivation, timeline, and price flexibility.
• If score is below 5, decide whether to nurture or move on.

Tip: Use a CRM to track lead scores and notes. This helps you prioritize follow-ups.

What red flags should you look for?

Not every lead is worth your time. Watch for these warning signs:

• Seller is unwilling to share basic property details.
• Seller has unrealistic price expectations (e.g., asking for ARV minus 5%).
• Property is listed with an agent — you may need to wait or negotiate a double close.
• Seller is emotional or refuses to negotiate.

Warning: If a seller won't give you access to see the property, walk away. You can't make a solid offer without seeing the inside.

Phase 2: Property Analysis

How do you estimate the after-repair value (ARV)?

ARV is the price the property could sell for after repairs. Use comparable sales (comps) to estimate it.

• Find at least 3-5 comparable properties sold in the last 6 months within a 1-mile radius.
• Adjust for differences: square footage, bedrooms, bathrooms, lot size, condition.
• Use online tools like Zillow, Redfin, or local MLS access to gather comps.
• Calculate the average adjusted sale price — that's your ARV.

Tip: Focus on sold comps, not active listings. Active listings are asking prices, not market reality.

How do you estimate repair costs?

Walk through the property and note every repair needed. Use a standard repair cost sheet to estimate.

• Create a checklist of major systems: roof, HVAC, electrical, plumbing, foundation.
• Note cosmetic items: flooring, paint, cabinets, countertops, windows.
• Get a rough estimate per item: e.g., new roof $5k–$10k, new HVAC $3k–$6k.
• Add a 15-20% contingency for unexpected issues.
• Total the repair estimate.

Warning: If you can't access the property, don't guess. Use a "worst-case" estimate based on photos and public records, but factor in a large buffer.

How do you calculate your max allowable offer (MAO)?

Your MAO is the most you can pay and still make a profit. Use the 70% rule as a starting point.

• MAO = (ARV × 70%) – Repair Costs – Assignment Fee (your profit).
• Adjust the 70% based on your market: hot markets may allow 75%, slow markets may need 65%.
• Example: ARV $200,000, repairs $30,000, assignment fee $10,000 → MAO = ($200k × 0.70) – $30k – $10k = $100,000.
• Always leave room for negotiation.

Phase 3: Verification and Due Diligence

How do you verify ownership and liens?

You need to confirm the seller actually owns the property and there are no hidden debts attached to it.

• Pull the county property records to verify owner name and parcel number.
• Check for any liens, judgments, or tax delinquencies.
• Order a preliminary title report (many title companies offer this for free).
• Confirm the seller has the authority to sell (no co-owners or heirs missing).

Tip: A title company can often run a quick ownership and lien search for free. Build a relationship with one early.

How do you verify property condition and boundaries?

Don't rely solely on the seller's description. Do your own checks.

• Visit the property in person (if possible) or have a trusted inspector do a walkthrough.
• Check for visible structural issues, water damage, mold, pests.
• Compare the property lines with county records to ensure no encroachments.
• If the property is vacant, check for utility shut-offs and vandalism.

Phase 4: Making the Offer

How do you present your offer to the seller?

Your offer should be clear, professional, and show the seller why your price is fair.

• Use a standard purchase agreement (your state's approved form).
• Fill in the purchase price, earnest money deposit, closing date, and any contingencies.
• Include an assignment clause: "Buyer has the right to assign this contract."
• Present the offer in person or over the phone, explaining your rationale (ARV, repairs, your profit margin).
• Give the seller a deadline to respond (24-48 hours).

Tip: Always include an assignment clause. Without it, you can't legally assign the contract to your end buyer.

What if the seller counters?

Negotiation is part of the game. Be prepared to adjust.

• Re-evaluate your MAO. Can you increase your offer and still make a profit?
• Consider offering a higher earnest money deposit to show commitment.
• Offer a shorter closing timeline if the seller needs cash fast.
• If the seller's counter is too high, politely explain your numbers and walk away if needed.

Phase 5: Locking Up the Contract

How do you finalize the signed contract?

Once you and the seller agree, get it in writing and secure the deal.

• Have both parties sign the purchase agreement.
• Collect the earnest money deposit (usually $500–$2,000) and deposit it with a title company or escrow.
• Provide the seller with a copy of the signed contract.
• Send the contract to your title company or attorney for review.

Warning: Never skip the earnest money deposit. It shows the seller you're serious and gives you legal standing if they try to back out.

How do you assign the contract?

Assignment is how you transfer your rights to an end buyer for a fee.

• Find a cash buyer or investor through your network, online platforms, or local REIA meetings.
• Use an assignment agreement that states you're assigning your rights under the original contract.
• Disclose the assignment fee (your profit) in the assignment agreement.
• Have the end buyer sign the assignment agreement and pay the fee at closing.

What should you do after the contract is locked?

Your work isn't done. Follow up to ensure a smooth closing.

• Confirm the title company has all necessary documents.
• Coordinate with the seller and end buyer on inspection and closing dates.
• Keep communication open with all parties.
• Prepare for the closing: bring ID, contract, and any required disclosures.

Recommended tools / next steps

Use a CRM like Podio or REIPro to track leads and automate follow-ups. For comps and ARV, tools like PropStream or DealMachine can speed up your analysis. Next, practice this checklist on a few leads — even if they don't close, the repetition builds your system. Then, find a mentor or join a local wholesaling group to refine your process.