I found a deal and the seller accepted, now what?

5 Replies

You then provide the purchase agreement contract, correct? I am in Oklahoma and was wondering if anyone can pass along a commonly used contract that covers all the bases when purchasing a property to wholesale.

I have made a few contacts that have buyers ready and trust in my marketing abilities that I can get the deal done, but not quite confident in getting the process started.

How about this:

http://www.ok.gov/OREC/documents/Residential%20Sales%201-2011.pdf

Todd Plambeck | [email protected] | TX Agent # 0681374

Todd,

Thank you for the quick response. I have a few beginner questions for you if you don't mind:

1) Line 1 "Legal Description" - What is typically included here?

2) Who do I write my earnest money check to once the seller has accepted?

4) As far as repairs, a wholesaler isn't going to ask a seller to make repairs but rather factor that into the total when pitching to investors, correct?

5) Line 10A "Buyers Expense" - Which is normally chosen here in a typical wholesale deal...Attorney's Title Opinion or Commitment for issuance of a Title Insurance Policy?

6) How many days do you typically delay closing?

7) Line 12 - What is the best choice for the Residential Service Agreement or does it depend on the property?

Thanks for the patience and guidance.

The standard OK contract is good because it covers a lot of situations, and if a seller has bought or sold a house recently they'll be able to recognize it. I use a different one that's a lot simpler (one page), PM me and I'll email it to you. Make sure, if you're planning to wholesale, that you put "and/or assigns" after your name on the line for the buyer. Oklahoma contracts aren't implicitly assignable like they are in Texas.

Make sure you have access to the property somehow during an inspection period, that'll be when you're able to take potential buyers by and have them look at it.

After you've both signed the contract, take it to a title company with your earnest money deposit. There have been several threads on investor-friendly title companies in Tulsa. Once that's done, start your marketing. If you're not having any luck finding a buyer, put it on the Marketplace here or on Craigslist (both of which are great places to find buyers, even if they don't buy what you're selling now they'll be on your list in the future). 

I'll answer your questions as well, if I may.

1) Line 1 "Legal Description" - What is typically included here?

The legal description is found on the county assessor's webpage. Just go to this website, search for the property by address, and there will be a legal description part of the listing that pops up.

2) Who do I write my earnest money check to once the seller has accepted?

The title company.

4) As far as repairs, a wholesaler isn't going to ask a seller to make repairs but rather factor that into the total when pitching to investors, correct?

Exactly. You buy as-is. 

5) Line 10A "Buyers Expense" - Which is normally chosen here in a typical wholesale deal...Attorney's Title Opinion or Commitment for issuance of a Title Insurance Policy?

This depends. I would mark the title insurance one, that way if your buyer wants title insurance (which they usually will) that work will have already been started.

6) How many days do you typically delay closing?

What do you mean? I usually use a closing date 30 days after the contract date. If, however, you're referring to the number of days to delay closing in case of any issues, 5 (the default if that line is left blank) should be fine.

7) Line 12 - What is the best choice for the Residential Service Agreement or does it depend on the property?

This is a home warranty. You don't need one. 

Thank you Kyle, I appreciate the clear and quick responses.

I have sent you a PM request as well, if you wouldn't mind sending over your 1 page contract that would be great.

Any other resources you might have that help clarify the process and provide insight, I am all ears.