Handling contracts for my first wholesaler deal

6 Replies

hi everyone.

I'm wondering if it makes sense for me to let a realtor I know here handle the contract portion of myfirst and second deal so i can learn from her.

Im not too worried about cutting into my profit on the first and second deal but rather more worried about messing something up legally, as that is the area I know the least about.

I contacted a lawyer in my area and he said he charged $1500 for contract reviews, which I know is high.

So my question is, do i use a rea or a layer to handle my contracts the first few times?

Thanks for your input !

I used downloaded contractS for my first few wholesales, they were 100% one-side but distressed owners don't seem to care about that.

Honestly it would be in your better interest to consult a Lawyer specializing in real estate then an agent. An agent is just going to use the standard 10 page Division of Real Estate contact, but they will not be able to educate you on anything else.

A lawyer can take your exact needs and draft whatever you need.

@John Horner

Thanks for the advice! I feel as if a lawyer is better as well, would offering a contingency be an insult to them? Or should I just bite the bullet and if I get a house under contract have them draft up the paperwork and hope I don't lose the earnest money and/or the fee for the contract review?

@Rich Wahl

Have you shopped around for a real estate attorney? 1500 is quite expensive for contract review, even if he is drafting it from scratch. In both Alabama and Maryland my attorneys gave me a contract that is custom to the specific state and county, and then when I ask for things to be added charged me from 50-150 depending on what. I have had JVs, Operating agreements, and other documents created and reviewed, nothing cost me that much.

I think the better answer is neither! You could go through a title company. Find one in your local market and ask them for the contracts they will send them to you, also ask them to walk you through them. Fill one out with them and market SAMPLE as a a go to guide. The FARBAR 'as-is" Purchase and Sale Agreement is extremely simple. I could even assist you if you really need it.

You should not be paying $1,500 for a simple contract review. The FARBAR are standard and simple FL contract.

@Manny cirino. That sounds Ike a good plan. Do a lot of sellers tend to come back with revised contracts? Or just accept it as is?

@tyrus s. I thought that was a bit high, I will do some more shopping.

@Rich Wahl

No, no one has to revise anything. The the seller may counter offer if they are not too fond of the figures, but they would not have to revise anything. I thing you may be missing the concept to wholesaling, when I comes to the paper work that is.