For those experienced and successful wholesalers out there, where can I draw up a purchase contract for the seller and an assignment contract for the end buyer from? Do I go to a title company/Attorney who's familiar with closing wholesale transactions to draw up the right kind of contracts I need so I can have copies?
each state and very often each county will have different purchase and sales agreement. some title companies will provide purchase and sales agreement s but I doubt they will provide any sort of assignment of contract agreements.
you may consider striking up a relationship with a realtor as he or she would have access to those documents. I would also suggest going to your local REIA networking events and seeing if anyone has a copy they be willing to donate.
from personal experience, there are some attorneys who will draw up these contracts for you, of course for price. those are good however in that they have been written by a licensed attorney.
Thanks for the awesome advice Patrick, I will be sure to network with my local REI and see if someone is willing to share. It also makes sense that each county may have their own different purchase and sales agreement.
@Darrell Jones Download limit is 3 a week but here's a link to some-
Thanks David for the link I will absolutely look into that.
Free / online boilerplate works fine for the first few but... If you get serious about it; get one actually drafted and reviewed by an attorney. There are a lot of basic items (tax prorate, home owners fees, possession terms, etc) that can get messy, esp. with a BAD / boiler-plate reassignment contract.
If you take a boilerplate, make sure you understand AND can explain what every clause says before you ask someone to sign it blindly (most won't have questions).
Remember, you get what you pay for.
That is an excellent point @Mitch Coluzzi I didn't understand 100% of the clauses on the contracts when I read them over and I do believe there are just a couple things in there that I would tweek to benefit myself and the seller and end buyer. I always want my deals to be a win win win across the board. Attorneys are definitely the way to go and it's worth the money I'll pay.
@David Ward wanted to make sure you seen that I thanked you for the awesome info, it was a tremendous help. Wasn't able to tag you in the previous reply I mentioned your name in. By the way how are you doing in the wholesaling market here in Houston?
@Darrell Jones No prob man. I'm just now really starting my campaign off; I've been pretty busy with work lately. As soon as I find a good affordable mail marketing company I plan on outsourcing the mail and ramping it up a little. What about you?
You Texans better use the TREC residential sales contract and learn how to use addendums to modify the terms you need. Texas has specific laws concerning residential real estate sale contracts. :)
@David Ward I just Spring, Texas from Connecticut for a better job opportunity and to use that as a tool to invest in Real Estate like I want to. Not sure if you heard of him but Jerry Puckett is a successful wholesaler and an active BP member who specializes in helping people with their marketing direct mail campaigns for wholesaling. He had an excellent Podcast episode (show 21) which I high suggest you listen to if you haven't already. Here's his website http://marketlikeawholesaler.com/
@David Ward wanted to make sure I properly tagged you so you'd get the message..
@Bill Gulley would I get this TREC residential sales contract from a title attorney?
Here in Texas, we can use contracts other than TREC.
We have 2 simple agreements for the Purchase and the Assignment, and they are tailored to this type of transaction. Used many many times here. You do need a title company that is investor friendly and understands the transaction.
I'm happy to share our simple wholesale contracts (as Word docs) if you PM me. Take them to a few title companies and see if they are acceptable for your use; modify them as necessary.
Use a Realtor contract with some Additional Terms .. and make sure it is assignable without seller approval.
For the assignment contract, you can either find one online or write one up and ask an attorney to review it. As long as you both sign a piece of paper stating you are assigning X contract dated XX-XX-XXXX for $X .. then that is the minimum you need assuming everything goes smoothly. All the other stuff you add is just to protect yourself and the seller since you want to make sure the end buyer maintains your same ethic values.
Dev probably has a compliant contract, my comment was based on my Texas RE attorney's comments as to using the TREC forms. The Board of Realtors probably sells them, sometimes you can get or order state forms from the library. I doubt a title company would have blank forms, but they might, if they needed a new contract for some reason.
Starting off, I'd suggest you use standard contracts without al the stuff that may require the "investor friendly" title plant, use addendums (blank attachments to the basic contract) to modify to your needs. :)
@Dev Horn thanks for the advice.
@Phil Z. I appreciate your input and will look into that.
Thanks @Bill Gulley
@Darrell Jones Hey man thanks for the link, I'll be sure to check it out.
@Bill G. Thanks for the advice!
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