I absolutely love this.
I'm going to be telling you today how to write a real estate wholesale contract, okay?
This is super important.
The contract is so important.
So, let's go through it.
I'm going to be sharing you in this video why when you're filling out the real estate
wholesale contract, why it's not just filling in blanks.
I'm going to tell you exactly how to look at it.
Why you don't want to just fill in the blanks and think that's the end of it.
I'm going to tell you the importance things that you want to include in the contract.
Okay?
That you do not want to miss.
Finally, if you stay to the end, I'm going to tell you how to get the best wholesale
contract for free.
The first thing that you want to do when we're talking about writing a real estate wholesale
contract, you want to take a moment and review the contract.
Okay?
So, before anyone is in front of you, before any person, you're talking to anybody anything
like that, you want to pull out a blank contract and literally read through it.
Okay?
So, there's 2 contracts that you're going to have when we're talking about wholesaling.
And what we're actually talking about most of the time is a purchase contract, okay?
That's actually what we're talking about most of the time.
We're not talking about a wholesale contract.
There's no such thing as a wholesale contract.
So let me first give you that.
Hopefully you guys fix that up.
We're talking about a purchase contract or a sales contract or a purchase agreement.
It has so many different names.
But the contract that we're talking about is you telling the seller that you're going
to buy the property.
Let's go back a step.
When we wholesale property, we agree to the seller that we're going to purchase the property.
And when we have that agreement, that's our equitable interest in the property.
We now have told the seller they've given us the contract so now we have equitable interest
in that property to purchase that property for X amount of dollars.
And legally, we can assign that contract which is our equitable rights.
We're not assigning the house.
We are assigning our rights to purchase that house.
And there's usually 2 ways that you can do it.
Usually you can just have the seller replace you by doing an assignment.
Or we may do something where we call it a double close where we literally buy the property
and then just sell it to someone else.
But let's just talk about the beginning part.
Because what we're really talking about where most people stumble is just filling out the
purchase agreement.
That's where we want to start.
So, I want you to pull out.
And I'm actually going to help you with this.
Pull out a purchase contract and look at it.
Review every single line of it.
And understand what it means.
There's a lot of different numbers.
You know, kind of starts of with the seller's name or the buyer's name.
The property address, how much you're going to pay for it.
That's like the beginning part.
And then it really gets a little bit more complicated as you go down.
Because it's adding different things in there.
So, you want to read through that so you understand what those other things mean.
So, the next thing that you want to do after you understand the purchase contract.
you need to look at and review the same way what we call Assignment Of Purchase And Sale
Agreement.
This is a separate piece of paper.
This is a separate agreement.
Not between you and the seller.
Because remember you and the seller, you guys have a purchase agreement.
That was the first document.
"Alright.
I'm going to buy your property."
You look that up.
The second part is the contract between you and the person that you assign that contract
to.
And so, that document is called an Assignment Of Purchase And Seller Agreement.
And when I tell you, that's the document that you want to know about.
So, now that you've reviewed both the purchase and sale agreement and the assignment of the
purchase contract.
And reviewed both of those documents and you feel you understand them.
The next thing I want to tell you is that you have some very important things that you
do not want to miss.
Okay?
So, let's go back to the purchase and sale agreement.
So, you're talking to the seller some really important things so that you can do this.
You want to make sure that you either put the property in your business' name, okay?
You say, I'm buying this property.
Because you can buy a property as a business.
That's why I want you to be a business.
But if you don't have a business, then you put your own name.
But if you do have a business, it will be your business that's purchasing the property,
okay?
So, you as the buyer, it's either your name your businesses' name, alright?
So, that's really important.
And if you have a business, I much rather you put businesses buying the property.
And then you want to put and/or a sign.
Now, I'm gong to give you some tips.
I'm going to actually give you a little bonus here.
But if it's not already written in on your contracts, you want to make sure you have
that and or a sign.
That way, that gives you the right and it kind of puts the seller on notice that that
is something that you can do.
The next thing that you want to make sure is on the purchase contract is an Option Period
where you can terminate.
So, when you're buying a property from the seller, you need time to (1) do you due diligence.
You need to make sure this is a great property for you.
You want to make sure other people are interested in it.
There's no way to really market and start selling a property until you have the contract
with the seller.
So, you have to get the contract first.
And then you start to do your marketing and tell people about this property that you have.
But in that period, you need time.
So, we call this an option period where we have the option to terminate the contract.
Now, in most contracts is already kind of written in there.
You just put how many days that you need.
You need 10 days, you need 15 days, you need 30 days.
How many days do I have to make sure I do my due diligence and make sure I do want to
purchase this property.
This is very standard language in a real estate contract, okay?
But you want to make sure that you have that in there.
The next thing that you want to make sure in that option period is that you can terminate
without losing any money.
Okay?
So, if you do an option, you may have to pay an option fee.
You may have to pay $10 or $100 for the option to terminate that contract.
Or you could use what we call the termination of contract due to inspections.
So, there's caveat in the purchase agreement where you have time to inspect the property,
okay?
And if you find things in the property where you do not want to buy it, you can cancel
the contract with a certain amount of days.
Make sure you have this.
You need time to send a contract to of the house.
You need to send roof or maybe a landscape or foundation person.
Whatever, painter.
You want to be able to be able to inspect the property.
And you need time to do that.
So, please, please, pleas make sure that you put that in your contract and give yourself
at least 10 days to do so.
Finally, last but not least, you want to talk about signatures, okay?
So, at the bottom of the contract, the signature part is so important.
You must have the contract signed by a legal owner of the property.
You cannot have some representatives sign on that behalf of the seller.
Unless they legally can.
You have to make sure you're dealing with the right person.
If you have the contract and it's the husband and he doesn't really own the property the
wise does, that's not going to be a valid contract.
So, you want to make sure the signatures that you have are from the correct person that
owns the property.
And that they truly have the right to sell you the property.
And you want to also sign it yourself.
Okay?
Even if you put the contract under your business' name, you'll still sign it as a representative
of the business.
The next question I always get.
And I'm just going to throw this in as a bonus.
Does the contract need to be notarized?
Does any of these needs to be notarized?
And the answer is "No, it does not."
I have advised some people to go ahead and get it notarized from the seller if you feel
like maybe the seller is being shady or you don't have the right person.
Or maybe this might be a cousin or uncle or a family member of like....Because often times..
I'm just going to give you the truth.
I've been doing this for a while.
What I am telling you that you're targeting and you're talking to people that have property
problems, sometimes that person is sick.
Sometimes that person is in jail.
Or sometimes that person is not available.
That's why they have this problem.
That's why you make so much money.
But you got to make sure you're dealing with the right person.
And that the right persons sign the contracts.
Because if it is not a person that is legally able to do this, you got a piece of paper.
That's all you got.
So, just want to throw that in the air and tell you a piece of information that you want
to be careful of.
Okay, that wraps up this video.
Hopefully you understand how to fill out a real estate wholesale contract.
You understand that we're mostly talking about filling out the purchase contract.
And as a bonus like I promised you, I'm going to give you a link to a free downloads, okay?
The document that you need.
And it's from my attorneys . You can do it in all 50 states, alright?
There's a link below for free where you can get a copy of these documents so you have
them and they're able to use in all of the states.
Both the purchase contracts and the assignment of the purchase of contract.
That is my gift to you if you click the link below.
Please go ahead at this time, like my channel.
Subscribe and I'll see you next time.