Washington , DC · Member since 2012 · 16 posts · 1 vote
First off I'd like to introduce myself. My name is Sierra and I'm new to BP. For the past couple of weeks I've soaked up a bunch of information regarding wholesaling from various sources (including BP), but I'm still confused about purchase agreement contracts/assignment contracts. Where exactly are you supposed to get these contracts from? Do you get these contracts from online, title companies, or an attorney?
Go to your local REIA to meet and network with other like minded investors. During the course of your conversations, ask to see a contract with they use. You might be surprised that they'll give you one! Since the person is local, it likely is more accurate to your state laws, etc.
While you're likely in competition with REIA members, they could also be your end buyers. Add them to your buyer's list!
First, you can try to get a contract from a Realtor, if they don't hand them out you could make a really low offer on something and get a copy (lol), but that should be examined and modified for your use. It will show you what kinds of issues are addressed in your area.
You can then make your modifications and make notes as to what you want to do. I'd then suggest you take that and see your attorney to get a final draft.
You can also find your local REI club and get with other investors to help you.
You need to start meeting people in RE anyway, an attorney, title company, a Realtor to name a few and they can all help you determine what is necessary in your area.
IMO, the problem with stuff off the internet and in guru programs is that they may not meet your state requirements. If you get anything like this take it to your attorney for review.
Sierra Murphy Its pretty easy to get one. Just like Bill Gulley stated above, you can get one from a local realtor. If one realtor won't give you one for whatever reason..JUST ASK ANOTHER REALTOR! Someone will give you a copy, just don't stop after the first "no" you hear.
Then, you can just insert your "out clauses" into the end of the contract. It should have a section that allows you to put clauses into it.
If you are making offers to sellers like banks for REO deals or short sale offers, you will need to do so (in most cases) with your state approved contracts which are availabel from any RE agent, title company, or even your attorney.
If you are making offers to private sellers, you can use any contract you wish, but I would advise that you use one your attonrey has approved for your use or use the same state apporved contracts.
By the way, in the event you make offers on REo or short sale properties, you will not be able to "assign" them due to the no assignment clause placed in teh seller addendums so you will need to use any one of a number of creative means to circumvent that stipulation.
Some are: Vest offer in the name of a newly formed entity and sell your entity to your buyer
Vest offer in the name of a trust and sell the beneficial interest in the trust over to your buyer
Use a transactional funder to fund your entire deal, then with a second escrow (double closing) sell to your new buyer
JV with your wholesale buyer and vest the contracts in both your names.
Another great method to get a contract is to ask other wholesalers in your market what they are using. They will know what type of contracts are used in that particular market. They might even give you a copy of theirs.
Go to your local REIA to meet and network with other like minded investors. During the course of your conversations, ask to see a contract with they use. You might be surprised that they'll give you one! Since the person is local, it likely is more accurate to your state laws, etc.
While you're likely in competition with REIA members, they could also be your end buyers. Add them to your buyer's list!
Also you can try checking your local Staples or Office Max they sometime have some to go by as well as rental agreements...
I would not recommend this, these are not state specific contracts and are no better than some guru's contracts that are often useless in most States.
A contract is something that is legal binding, I would recommend you have your legal bases covered to protect you, a Staples version will not do that for you.
@Mark Yuschak Great point! REIA meetings are the best place to find quality buyers and wholesalers. If you meet another wholesaler that ends up giving you a copy of their contract, you probably want to build a great relationship with that person and work closely with them.
@Will Barnard also true. Those are just generic contracts for any state/market. Although you may be able to use it in some cases, most people with not prefer it or not let you use it.
My @ function isn't working for some reason. When I start typing a name, the options don't show for me. Is anyone else having this problem or is it just my computer?
My @ function isn't working for some reason. When I start typing a name, the options don't show for me. Is anyone else having this problem or is it just my computer?
Yes, same problem, I notified Josh yesterday of this issue and he is on it.
Thank you guys for all the helpful information. I plan on attending REI meetings to meet some investors. Hopefully I can connect with someone well enough to take me under their wing. I'll update you guys on my journey.
Keep in mind that networking with other investors at RE meetings requires buidling a relationship with them. You do not want to walk in there and start asking them for help right off the bat. Create converstaions with them and ask them about themselves and tehir investment strategies. Share a few thoughts of your own. make friends, the mentors will follow.
Keep in mind that networking with other investors at RE meetings requires buidling a relationship with them. You do not want to walk in there and start asking them for help right off the bat. Create converstaions with them and ask them about themselves and tehir investment strategies. Share a few thoughts of your own. make friends, the mentors will follow.
Very true Will. Building relationships is KEY when networking with other investors. I couldn't have said it better than "make friends first and the mentors will follow." Looking back on how I started working with my best partners I work with today, they all started with friendly conversations. No soliciting or asking them for anything. Just general real estate talk.