Hello all! I'm new to the site and wholesaling! I have a couple questions about filling out P&S contract.

Anyone familiar with FreedomSoft contract templates? In the purchase and sale contract it reads:

Sale Price:                                             $_______________

Subject to: ___________________           $_______________

Equity:                                                    $_______________

Payable: ______________________

What goes in the "Subject to" blank and dollar amount? Also, what goes in the "Payable" blank??

Subject to is the end buyer, I have no clue what the dollar amount is for

@Micah Ainsworth

"Subject to" is the amount of the underlying note that the seller is leaving in place.

That's a funky clause and I personally wouldn't use it.  The subject to amount is the amount of the loan you are taking over.  The payable line is maybe to indicate a date when loan is due?  

The equity line is something I wouldn't use in a purchase agreement. The equity is the difference between the debt and the FMV. Your purchase price may be a screaming deal or you may be overpaying. So unless there is an appraisal and an agreed upon value, putting the equity amount in a purchase agreement seems like a bad idea to me.

@Guy Gimenez   thanks!

Kristine Marie Poe Makes sense now! 

How does everyone deal with EMD? Do you pay, have your end buyer pay? And what wordage do you add on P&S if your end buyer pays EMD when wholesaling? Also, how much time do you normally give to close?

When assigning or double closing I pretty much always open the escrow and deposit the EMD. I'm the purchaser, it's my contract and my funds that go into escrow. If I assign or sell to another buyer, the EMD is added to my sales price. I don't think my way is typical. I'm a control freak on my deals when it comes to escrow and closing. I've usually made promises to the seller about vacancy and tenants and time frames so it's important to me to remain in control. There are lots of different ways to do it.

@Micah Ainsworth

Generic online forms are seldom an investor's best friend. If you plan to assign a contract, it's better to have a solid form that includes mandatory and desired disclosures, etc. that give the assignee reasonable options and protections.  

Thanks for all the info! 

Originally posted by @Guy Gimenez :

@Micah Ainsworth

Generic online forms are seldom an investor's best friend. If you plan to assign a contract, it's better to have a solid form that includes mandatory and desired disclosures, etc. that give the assignee reasonable options and protections.  

I agree. Micah, have you looked at your state's "standard" form? The NC forms have all that stuff thought out, and in my state the forms are available from your attorney. Many states allow you to use the "standard" form (some have license fees) and I think FL is freely available. Not sure about your state, but it's worth looking into.

@Chris Martin  I do have access to my state's standard form, and I'm thinking I'll just use that! Thank you!