BiggerPockets

J O,

there are several option contracts floating around from experienced investors like JP Morgan,Flipman,Vena etc..go to any of there sites or you can go to [REMOVED] an possibly get them from here as well...You want to check to make sure you have contingencies written incase something happens and you can't make the deal work...Regard to title company you should look for flexibility and one the investor friendly. A title company that work on best behalf of buyer and seller.

This is the way I would do it:

1. Find buyers and find out what they want.
2. Set up your marketing to find properties your buyers are actually looking for.
3. Contact seller leads.
4. Negotiate a price with the seller keeping in mind what your buyer would be willing to pay plus your fee.
5. Fill out a standard purchase agreement with the seller.
a. The buyer is you and/or assigns.
6. Get the purchase agreement recorded to create a cloud on title.
7. Contact your buyer.
8. Set up the transaction with your title company.
a. Your title company should be able to do either assignments of contract or double closings.
9. Close the deal. Collect your fee.

If you're worried about your buyer circumventing you, recording the contract is your best option. But, if he does, obviously you'll never use that buyer again because he is dishonest.

a contingency is an escape clause that in the event something should happen and you can't close or find an end buyer it allows you to get out of the contract. ex. inspection, clear title, mortgage etc. so it will depend partially on the conversation you have with your seller that may determine the type of contingencies if any that you use. If you are 100% sure you have a buyer for the property contingencies may not be necessary. I recommend knowing you have a buyer ready to go before getting a property unde r contract (purchase/sale contract pro-buyer with assignment written in) or first doing option contract for a specified time frame, then after finding a buyer going back to excute a purchase/sale contract (with assignment statement) with original seller then follow up with the assignment contract to assignment your interest to the buyer you found.

Oh my! Let's not record the sale contract, let's record a Notice of Sale Pending or Notice of Pending Sale, or Notice of Lien, or many different descriptions for a letter simply stating that the property is under contract. That is all you need to give notice that a pending sale/closing is on the way. Recording the sale contract gives the whole world notice as to what you are buying the property for, and the terms under which you are buying. Do you want to do that? I wouldn't.

a contract contingency is not really an out startegy, it's an aspect of the transaction that requires a certain thing to happen or be acceptable in order for there to be a binding contract. You need to proceed in good faith to ensure that contingncies happen. A statement for the contract being subject to an acceptable HVAC inspection, means you have a certain period of time, a reasonable period, to complete an inspection and approve of the condition. If you fail to have it inspected and a week after your inspection period you want out, you can't just say, well, the HVAC isn't any good....you have to make a reasonable effort to see to it that any requirement for a contingency is accomplished and carried out. If that's all you said, it could be that the HVAC needs only to be operable and if it works, you bought ! Be very detailed about your contingencies and requirements.