How to simply "tie up" a property....PLEASE HELP.

Question

Do you NEED a purchase and sale agreement or can it be done with a simple "intent to purchase" letter or a written offer???? A purchase and sale agreement contains all types of clauses and issues that my seller and I have not determined. I need help to know whether or not we need to determine everything right now or if I can simply tie up the property now and work out all the details afterwards.....PLEASE HELP.

Bill McKee · Answer

Using a 'letter of intent" can get the transaction started, but seriously.. there are many issues to address in most transactions.  Title issues, financing issues, tenant issues, inspections, possession dates, pro rate dates, personal property, how is condition of property at time of possession.. broom clean? .. anyway, lots of issues that a final agreement should address.  I've brokered for more than 30 years and still run into closing and 'personality" issues I wish I didn't have to deal with!

To put it simply, the world is complicated- you can try to simplify.  And that works "most" of the time. One's particular reaction to stress is a big factor in this.. and how well you deal with uncertainty.  The better you draft your agreement, the less uncertainty you're bound to deal with.  Won't eliminate it, but it can reduce it.

After a lot of years doing this stuff, my preferred approach is to make the initial contact simple- rather open ended- with the full intention of using that as a means of learning a bit more about the motivation and flexibility of the other party.  Can I work with this person? Do I want to work with this person? .. If yes, make a personal connection and invest some time to know him/her better.  Be respectful- and make good decisions that won't come back to haunt you.

I see a lot of investors who forget what "romance" is all about.  They push to "get married" 10 minutes after meeting someone!  How special. I suggest a more personal and respectful approach to this business. Be direct and honest- think mutual cooperation rather than confrontation.

Hey, the world isn't going to end - take your time and enjoy the process.  Learn something.  Make long term friends- think long term with the contacts you make.  Makes life a lot more fun, too.

Bill in Oregon

Jason Cummins · Answer

without me being an attorney, and you realizing I am just giving an opinion...

You need to get it under contract ASAP to make sure you got it!

Cheers!  :beer:

Andrew Massaro · Answer

You need a contract to secure the property.  Ask a fellow wholesaler in your market and he can usually provide one.  If you contact me, I'll send you the one I use.  It works in any state, except NY, I believe.

Contract should be no more than 2 pages, and easy to understand.  You shouldn't have to see an attorney to secure a property under contract to buy.  It basically needs your name, the seller's name, the address of the property, closing date, verbage about you taking it in its current condition, an inspection period and a place for both to sign.

Eric Foster · Answer

Well… yes you should see an attorney. And if you have a bunch of “unresolved” items… you really don’t have it “tied” up anyways…

The seller could say “no” or not agree with something and the deal is off.

In reality… there is not that much you need to agree on…

- The Price is the main one

What details have you not agreed on?

John Michailidis. · Answer

As an attorney myself, I would advise you to talk to someone very familiar with GEORGIA real estate law.

How to simply &quot;tie up&quot; a property....PLEASE HELP.

How to simply "tie up" a property....PLEASE HELP.