General property information, warranties, your master key and all

maintenance and inspection information.

BLUE: LEGAL DOCUMENTS

Copy of the offer to purchase, all due diligence documents, survey or title
insurance certificates, appraisal and all closing documents. This file should
go into the bottom file drawer as it won’t be accessed very often.

GREEN: ONGOING MONTHLY RECEIPTS

All receipts related to any expenses on the property. The green folder will
get most of the attention and will be opened most often. At the end of each
month, gather all of the receipts in a folder and put them in a #10 envelope
marked with the month and year. On the outside of the envelope list the
company name, the amount paid for each receipt and the classification
(office expenses, marketing, maintenance, etc.).

REPLICABLE RECORD

These envelopes now serve as a replicable record of expenses if your

computer crashes! No matter how many properties you own, and how good
you get at finding and buying new properties, always follow your system
for filing documents related to each property. A booming market can trick
veteran and rookie investors into thinking they don’t have to follow their
systems. This is a mistake! Market shifts are inevitable and you never want
to be looking for documents when you should be taking care of business.

SOPHISTICATED INVESTOR TIP