Contract Advice?

Question

Hey all of BP,

I am new here and my goal is to start out marketing that I BUY HOUSES CASH, typically I will focus on wholesaling to other investors but I also want to be knowledgeable enough to do Sub-2s, lease options,  etc.

Analysis Paralysis is setting in and I am taking action to give all of my research purpose before I get overwhelmed. I got my first cash buyer to call me today from a craigslist ad! Wohoo! I was nervous but this is cool! My thoughts are becoming a reality. That is neat to see. Anyway I am getting clouded by the thought of contracts and the process to that. What do you guys recommend I do to educate myself with contracts? My plan in my head was to go to a good RE attorney tell him what I want to do, and have him guide/tell me what I need to have and need to know in order to do such a thing. Does he provide me with a contract? Or do I use one I got off of the very trusting internet for free? I could run the one I have downloaded by the attorney for him to look over. Would that save me money?

Second, after I get my hands on a contract is it wise to go to your investor friendly title company and let them see what you have and if they will work with it or is that a waste of time? You see, i am lost when it comes to the paper work of these deals I don't even know where to start to obtain the knowledge to understand them. How have you former beginning investors conquered this obstacle?

Thank you everyone, and @Josh Dorkin for making this possible.

Jerry Puckett · Answer

Start with your state approved contract. You will not have to worry about legalities or title company issues if you're using the "standard" contract.

I conquered this issue initially by taking a class at a local REI club taught by the best local RE attorney. When I was ready to do my first deal, I took the contract to an attorney for approval. I could have saved that $250 though because I was using the standard state contract....what was there to say?

I gotta ask....how is it that folks try to jump into this game without critical pieces of info like where to get a contract, and how to use it? That same question comes up over and over again....

J Scott · Answer

Linked for Jerry:

http://www.google.com/url?sa=t&source=web&cd=1&ved=0CDoQFjAA&url=http%3A%2F%2Frealestate.utah.gov%2Fforms%2FREPC_2008.pdf&ei=WhsbUdWrNOTn2QX45YGIBQ&usg=AFQjCNFwGZTPqSLhQANXAm9UB6tVMI_-Og

Tyler Bond · Answer

Awesome! Thank you Jerry! Yeah, no hard feeling here. I appreciate it, sir.

Jerry Puckett · Answer

Hey Tyler,
No worries and nothing personal. I Googled standard contract for Utah. So here you go: (I'm posting from my phone so forgive me if it doesn't link properly. You can just copy and paste the URL)

http://www.google.com/url?sa=t&source=web&cd=1&ved=0CDoQFjAA&url=http%3A%2F%2Frealestate.utah.gov%2Fforms%2FREPC_2008.pdf&ei=WhsbUdWrNOTn2QX45YGIBQ&usg=AFQjCNFwGZTPqSLhQANXAm9UB6tVMI_-Og

Tyler Bond · Answer

Thank you Jerry. I will find that state approved contract. I'm just starting a semi-local REI club this month. It should have lot of valuable information and opportunities for me.

To chime in on your question, for me, I jumped into this game because I KNOW this is what I want to do. Passive cash streams and entrepreneurship is the life for me, PERIOD. I understand there is a lot more to it than that. Let me be specific, a lot more UGLY aspects to it than is foreseen at this stage.  I am only 19 and I will be the first to admit, I am very uneducated in this whole way of things as of today. However, as uncomfortable and discontent as I am, I grind every single day from sun up till way past sun down to try and obtain the knowledge I most certainly need. I am unorganized right now in what order to obtain information but I am working on my own way to do things. My own process. And it is difficult. Very difficult. I can see how easy it is to get overwhelmed. I think when it comes to contracts, for me, I see the "law" as a very complicated and timid subject. Maybe procrastination has made me wait till now? When I got a cash buyer to call me today, it is making me realize that this is a reality if you make it one. So, instead of just THINKING what I need to do next, I go ahead and do it.

I apologize if I just come off as very very ignorant. Quite honestly, I am. Like I said, I am doing as much as I can to try and get through this learning curve and past all of the embarrassment from criticism to get where I need to be.

"To avoid criticism, do nothing, say nothing, be nothing."  
                                                             - Elbert Hubbard

Thanks again Jerry, 
Tyler

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