Forums » Wholesaling Forum » Filling out the PSAgreement

Filling out the PSAgreement 7 posts by 5 users

Courtney S.

Real Estate Investor
Sunrise, Florida

23 posts

Posted: 09/28/2008 at 07:35AM

Ok so this may sound odd, but thats why I'm here to find out everything.

My question is this on a Purchase and Sale Agreement where it talks about "New Loan" exactly what would I write there?

****The agreement is contingent upon buyer's ability to obtain a new loan in the amount of $___________.
Buyer is not required to accept any loan with interest rate exceeding _________% amortized over
___________ years or pay any closing costs or points exceeding $___________. Buyer shall provide
seller with written proof of a loan commitment on or before __________, 20 ___.*****

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Glen A.

Real Estate Coach
Oviedo, Florida

Author

36 posts

Posted: 09/28/2008 at 01:00PM

Courtney,
First off is this for you or your buyer? The amount you're getting financed goes in the first line.

You would put the going Interest rate. I usually just put "6.75"over " 30" years.

Loan commitment within 30 days if I'm the buyer and 14 days if I'm the seller.

I hope this helped.

Courtney S.

Real Estate Investor
Sunrise, Florida

23 posts

Posted: 09/28/2008 at 04:50PM

Thanks. This would be for when I am dealing with a seller.

But what about the line that says "closing costs or points exceeding" ? What would I place there?

And is 6.75% a common percentage to put?

Scott H.

Real Estate Investor
Tucson, Arizona

24 posts

Posted: 09/29/2008 at 11:04PM

These are not meant to be written in stone, however, you should make an attempt to be somewhat accurate. You are likely not paying any points and your closing costs can be calculated by contacting a title company. If your offering to pay the sellers closing costs, then you must inform the escrow officer to estimate the closing costs for both sides.

Robin V.

Real Estate Investor
Reading, PA

219 posts

Posted: 09/30/2008 at 03:48PM

Having a morgtage broker on your team can be very valuable. Keep in contact with them to see what is typically out there for investors.

Robin

Courtney S.

Real Estate Investor
Sunrise, Florida

23 posts

Posted: 09/30/2008 at 03:58PM

Ok thanks everyone! But what would be a good percentage to put?

Jason C.

Real Estate Investor
Katy, Texas

501 posts

Posted: 09/30/2008 at 05:30PM

If this is for a purchase agreement for a wholesale deal you do not even need to have this in your contract.