Wholesaling Contract

27 Replies

Are there examples of wholesaling contracts on BP? Or better yet, are there wholesaling contracts that can be used when putting a house under contract on the BP website?

Look in Fileplace under the Resources tab

@Ross Hoffmann   Sharon Vornholt's contract is there. It is short and sweet. I tweaked it a bit to meet my needs; language, formatting, and such. Let me know if you want me to send it to you.

Brandon,
May I please get a copy of that contract
Thank you

@Brandon Sturgill  if it's also possible for me to see your version of the contract I would greatly appreciate it. Could I PM you about some wholesaling questions??

Brandon, 

I would sincerely appreciate a copy of the contract also.

Purchase contracts generally need to/should be state specific.  It's cheaper to make sure they're compliant up front, than find out they're not later on.

Brandon,

Could you please send me a copy of your version of the contract.

Thank you

Karl

Folks, pay attention please:

RE contracts may be specific to state law, you can't be pulling hocus-pocus contracts off the internet and expect them to be valid all over the country!

As to short and sweet, there is an issue and it's again, a lack of knowledge and some degree of laziness, if you are assigning a purchase contract that contract not only needs to be valid but cover all the bases of a conventional sale contract customarily used in your area. You can make addendums to modify existing covenants, such as buyer default provisions in a standard RE contract. You also need to understand why such things such as insurances loss proceeds are contained in a contract (usually a rather long wordy paragraph) but it can be a very important matter, it wouldn't be there if it were not.

Study the standard contracts used in your area, it doesn't take much time to paraphrase the content of the covenants or agreements when you understand them, that's to the laziness side.

If you use an option, the option should practically mirror a purchase contract with the default provisions removed, as it will be your option to exercise the sale agreement. That way there are no other agreements to be made in the future or to fight over who pays what at settlement, and, just as with loss proceeds, if there is a loss, it may be in your (or the buyer's) best interest to accept insurance proceeds and take the property.

Folks need to get away from guru contracts, learn real estate and basic contract law, it's not hard.

Happy Turkey Day!  :)   

This post has been removed.

Are there any for los angeles area?

look under the resources tab.

http://www.biggerpockets.com/files/category/contracts

Since you are in California, look up First Tuesday. Their contracts are simpler than CAR and have the added advantage of being written by a few lawyers. I've used them for years and they are simple and easy to use.

@Brandon Foken thanks very helpful.

anyone know a contract specfic to michigan that is verified valid under michigan law

Originally posted by @Wayne Brooks :

Purchase contracts generally need to/should be state specific.  It's cheaper to make sure they're compliant up front, than find out they're not later on.

 Agreed!   Use a state contract for best results.   When you wholesale you are selling contracts not houses.   State contract is more sale-able and worth more!  

Originally posted by @Andrew W. :

anyone know a contract specfic to michigan that is verified valid under michigan law

 I am no attorney...  but I would venture to say a Michigan state contract would be a great place to start.  Ask you agent for a blank copy for you to review.  

Find a local REIA and get one from someone locally. the ones on the internet are not universal.

thanks for the reply ronnie and stehen i will look into  that

Originally posted by @Wayne Brooks :

Purchase contracts generally need to/should be state specific.  It's cheaper to make sure they're compliant up front, than find out they're not later on.

 Hi Wayne, I am starting in Real Estate, and I am also from Florida, do you have a contract that you usually use for wholesale deals?

Originally posted by @Bill Gulley :

Folks, pay attention please:

RE contracts may be specific to state law, you can't be pulling hocus-pocus contracts off the internet and expect them to be valid all over the country!

As to short and sweet, there is an issue and it's again, a lack of knowledge and some degree of laziness, if you are assigning a purchase contract that contract not only needs to be valid but cover all the bases of a conventional sale contract customarily used in your area. You can make addendums to modify existing covenants, such as buyer default provisions in a standard RE contract. You also need to understand why such things such as insurances loss proceeds are contained in a contract (usually a rather long wordy paragraph) but it can be a very important matter, it wouldn't be there if it were not.

Study the standard contracts used in your area, it doesn't take much time to paraphrase the content of the covenants or agreements when you understand them, that's to the laziness side.

If you use an option, the option should practically mirror a purchase contract with the default provisions removed, as it will be your option to exercise the sale agreement. That way there are no other agreements to be made in the future or to fight over who pays what at settlement, and, just as with loss proceeds, if there is a loss, it may be in your (or the buyer's) best interest to accept insurance proceeds and take the property.

Folks need to get away from guru contracts, learn real estate and basic contract law, it's not hard.

Happy Turkey Day!  :)   

 Hi Bill, thank you for the advise!

Is there some specific way to learn real estate contract law that you would suggest to a beginner investor?

Originally posted by @Gustavo Mendes :

 Hi Bill, thank you for the advise!

Is there some specific way to learn real estate contract law that you would suggest to a beginner investor?

You don't need to learn Florida Contract Law to get started, other than that your contract needs to be on paper, executed, and have consideration to be enforceable. '

In Florida you can use the Florida Bar As Is contract and know that it has passed review by many lawyers for use in Florida. Any additional terms that you may have as an investor can be written into the Additional Clauses section. Personally, I prefer the old 4 page contract the most up to date one quite long. Google "Far bar contract" or "Florida Bar AS IS contract"

I uploaded one that is in Word format so you can edit this and add or take out any information you would like. This is what I use on a daily basis, and it has been modified by my real estate attorney a few times. Let me know what you think @Ross Hoffmann . Hey this may need to get in front of your attorney who works in your state and by downloading this you understand that you are assuming all risk when using this @Jeff Thompson and @Karl Smith & Account Closed. I hope this helps you guys! See below:

1 Page Assignment Contract - Indiana (really not state specific but you need to check before you use this!)

I'd disagree with Kent about knowing FL law. It can only help you in your business,  how would not knowing what's required in your state help you? The long answer would be to the question, how could it hurt you.

Some confusion seems to be here as well, as to "what law" real estate or contract law....

There are only a few requirements to a valid and enforceable contract, but while contract law can be very sticky, in most RE transactions you will only be concerned with the basics of a contract. RE law is`not really the contracts used, that pertains more to title, liens, encumbrances, property rights, legal descriptions, not the contract, but aspects of the contract will have RE legal matters contained in them, such as "convey by a General Warranty Deed".   

You can get any Business` Law text book for high school classes or freshman college students, about the same, titles like "Introduction To Business Law" or "Business Law 101".

If you're going to be in business, you need to know what and how things are done in business, first problem  with newbies is assuming they know what is legal, fair, predatory, unethical, valid or enforceable, most often they don't know. This is not just to the RE business, but to any business. 

It's not difficult, it isn't something where you need to memorize 40 or 120 pages, more like 10 pages in the entire book. But, you will have read it, things will click when you recognize some situation, then you will know where to look things up. Won't take long either, but pay attention to the contract law section. :)  

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here