Newbie help contracts before I start

2 Replies

Hello BP.

I am a new guy to the scene and before I get started I would like to ask a couple of questions.

I wanted to get an offers sent out and if I have one accepted, will a generic purchase contract work ?

I actually have one drafted up by my attorney through the CAR if you guys are familiar with that, California Association of Realtors, it is 10 pages long and seems to be a major task to learn it all and all I really want to do is get some deals done. I will eventually learn it but right now I just want to take action, as I actually have bird dogs under me and sad to say but I can't even send out a contract. I understand the process of investing but was cautious about the contracts, and wanted to hear what the people who have gone before me think.

Do I really need to use this to get started ? I'm really just going to do wholesaling for now.

Can I just get a generic form and use it as long as it has the assignable contingencies and other basic "needed" language ?

Anyone with a "generic" form they are using and is actually working please show me.

I am in California, bay area.

Thank you

you are on the right track Chester. Use one that you like as long as it has necessary info for all parties involved. Just do it. If it is not a good contract the title company will probably just draft a different one for you to use.

@Chester Chu

The only thing worse than not taking action is taking action with very limited knowledge. This is how you open yourself to liability. Use the attorney drafted contract as it presumably offers you some protections at a buyer. If you don't understand the terms, spend a few hundred dollars to have your attorney explain it to.  

What happens when you pull out a contract for a seller to sign and they ask you what they're signing.  If you don't know what any paragraph means, they'll likely lose confidence in you quickly. 

Don't "jump in" with both feet without some basic knowledge (at a minimum) or without a partner to help guide you in the process. That last thing you want is an attorney on your back side because you failed to recognize the ins and outs of a contract.

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