Real Estate Investment Timetable

The below tables are an overview of the major steps involved and how long each step may take when purchasing real estate in your PENSCO account. The tables should be used as a guide rather than as detailed instructions for the process. Refer to the Real Estate Investment Kit for detailed instructions and information about required documents.

Tasks and timetable when purchasing with cash

If you have an account with us and are ready to make a cash-only purchase, PENSCO requires 1-3 business days to close once we receive the required documents.

Task How long it may take Who is responsible
Account open 1-2 business days after PENSCO receives the completed application Accountholder and PENSCO Trust Company
Account funding Varies depending on how you're funding. See Funding Methods and Timelines for details Accountholder. If transferring from an existing account held elsewhere, current firm where account is held.
Send all required conforming documents to PENSCO in order to fund the closing / purchase 1 business day*

(dependent on delivery method)

 Accountholder or real estate agent
Closing / purchase: sign off on purchase 1 - 2 business days Accountholder

Ongoing maintenance:

  • Income & expense management
  • Recording annual asset valuation

Note: All expenses must be paid from cash funds in the account and never done directly by the accountholder per IRS and Dept. of Labor rules.

 Ongoing

PENSCO Trust Company pays expenses on behalf of the accountholder from the funds in the account.
OR
If using a property manager, property manager pays, collects and settles expenses.

Accountholder must maintain cash balance minimums in the account to pay for asset-related fees and property-related expenses (such as, HOA dues, property tax, etc.).

Tasks and timetable when purchasing with a loan

Task How long it may take Who is responsible
Account open 1-2 business days after PENSCO receives the completed application Accountholder and PENSCO Trust Company
Account funding Varies depending on how you're funding. See Funding Methods and Timelines for details Accountholder. If transferring from an existing account held elsewhere, current firm where account is held.
Locate property and make an offer Days to weeks Accountholder works with a real estate agent

Non-recourse loan processing if financing the purchase

Note: Review UBIT & UDFI information if you're using a loan and consult with a professional regarding your particular situation.

4 - 6 weeks

Based on lender's timeframe. Please check with lender.

 Non-recourse lender
Accept purchase contract 1 + days Seller
Once accepted, notify PENSCO that the contract has moved into contingency-removal phase 1 day Accountholder or real estate agent
Contingency removal 3 - 4 weeks Real estate agent and accountholder work to remove purchase contract contingencies.

Funding the remaining balance by sending to PENSCO required documents

Note: See the Real Estate Investment Kit / Checklist for details.

 1 - 2 days Accountholder or real estate agent
Fund the transaction 1 - 2 business days depending on when PENSCO receives the wire funds PENSCO Trust Company on behalf of the accountholder
Closing 1 - 2 business days Escrow company

Ongoing maintenance:

  • Income & expense management
  • Recording annual asset valuation

Note: All expenses must be paid from cash funds in the account and never done directly by the accountholder per IRS and Dept. of Labor rules.

 Ongoing

PENSCO Trust Company pays expenses on behalf of the accountholder from the funds in the account.
OR
If using a property manager, property manager pays, collects and settles expenses.

Accountholder must maintain cash balance minimums in the account to pay for asset-related fees and property-related expenses (such as, HOA dues, property tax, etc.).

Next steps

If you're ready to make a real estate purchase, download and print our Real Estate Investment Kit which includes detailed instructions and an easy-to-follow checklist.

If you don't yet have an account, open an account with us today.