Am i fine if the seller gives me a contract?

[Luis Barba-Ayala]

Hello Everyone,

There's land that I am interested in getting under contract but the seller wants to draft their own contract. He did not specify the kind of contract it is but I'm assuming it is a for-sale-by-owner contract. Would I still be able to have them sign the assignment contract? I am confused as to why they are drafting their own contract if I am not going to be the end buyer of the property. Should I put the cash buyer as the buyer on the contract or am I fine with signing the contract myself? I just do not want a problem with selling the property to happen and for it to turn into a legal matter against me. Please let me know your thoughts about this matter. Thanks in advance!

P.S. I am new to wholesaling as well as BP. I have been inspired by the information that has been shared through BP to start my journey in the wholesaling world. I learned about BP when I was doing research on wholesaling to teach myself what was needed to succeed. I currently am in the process of getting a few properties in the Houston area under contract.

[Charles Carillo]

@Luis Barba-Ayala

You will most likely want to use your own contract (that is assignable). I would also be honest with them about your intentions.

[Mohammed Rahman]

Ditto to what @Charles Carillo mentioned as it avoids any surprises down the line. You shouldn't have to hide anything since the seller will still get the same price that you both agreed on. It could also be the norm for the seller to send out the contract in the market you're in. 

[Eliott Elias]

Depends what state you're in. In Texas all contracts are assignable unless stated other wise. Worst case you double close 

[Chris Seveney]

@Luis Barba-Ayala

Do they know you are wholesaling the deal?

[Joshua Messinger]

Hey @Luis Barba-Ayala! 

In these types of situations I'd have your attorney review the paperwork to make sure everything that is happening is the norm in the market you're in... Love @Charles Carillo & @Mohammed Rahman responses to this one! 

[Matthew Morrow]

Use your own contract for sure. Explain that although he may want to use his own- you’re the one who has the exposure and needs protection when finding the end buyer. 

A for sale by owner would run into the same scenario and be expected to use a RE contract with a represented buyer so it would be the same with you. 

Good luck! 

[Jonathan R McLaughlin]

@Luis Barba-Ayala looks like you are in a negotiation, proceed accordingly.

[Lydia R.]

Quote from @Luis Barba-Ayala:

Hello Everyone,

There's land that I am interested in getting under contract but the seller wants to draft their own contract. He did not specify the kind of contract it is but I'm assuming it is a for-sale-by-owner contract. Would I still be able to have them sign the assignment contract? I am confused as to why they are drafting their own contract if I am not going to be the end buyer of the property. Should I put the cash buyer as the buyer on the contract or am I fine with signing the contract myself? I just do not want a problem with selling the property to happen and for it to turn into a legal matter against me. Please let me know your thoughts about this matter. Thanks in advance!

P.S. I am new to wholesaling as well as BP. I have been inspired by the information that has been shared through BP to start my journey in the wholesaling world. I learned about BP when I was doing research on wholesaling to teach myself what was needed to succeed. I currently am in the process of getting a few properties in the Houston area under contract.

 You definitely want to write up your own contract. There is something more to this story because no seller offers to write up the agreement unless they are a real estate professional in some capacity. Also, you might want to brush up on the process so you dont make a costly mistake. Seller does not sign the assignment agreement. The seller only signs the purchase agreement. Your end buyer signs the assignment agreement. 

The entire blueprint of wholesaling is for you to put yourself in the contract as the buyer and that assign that equitable interest to an end buyer. If you just put the end buyers name on the contract you dont get paid a wholesale fee. You basically just found the end buyer a deal for free. There is no such thing as risk free real estate investing. There is always a risk. In wholesaling the risk is minimal compared to other strategies but there is still a risk. If you arent willing to take that risk, then you need to reconsider real estate investing and consider something else. If you write and execute your contracts properly and conduct yourself with integrity  you will be protected from facing any legal issues

[Lileth Nelson]

Hi there, are you working with a Realtor?  They will help with your contracts.

Best wishes.