Which Wholesale Contracting are you using?

Question

Greetings everyone, I am new to wholesaling. I plan to do wholesaling in Texas. Can anyone tell me which contracts I may need between me and the buyer (assignment contract). What contract would I use between me and a seller. I was looking for something that was simple, direct and to the point but yet legal in the state of Texas. What are you using as a wholesaler?

Guy Gimenez · Answer

@Marie Riddick

Just one quick question Marie...and it's meant solely to provoke some thinking on your part. If you don't know what contract form to use, do you think you'll be knowledgeable enough to complete the contract form that you don't yet know about?  Read some of the horror stories here on BP about new investors who attended a weekend seminar and now find they're qualified to draft contracts with little understanding of the consequences of the provisions within that contract.

Do yourself a HUGE favor and find yourself a local, seasoned investor to help you on your first 5 to 7 deals so you can learn from the mistakes of those who went before you. Trust, learning from other's mistakes is always preferable.

Not being critical, just hoping to give you something to consider as you start your journey.

Marie Riddick · Answer

Thanks you Ned and Guy for your suggestions, greatly appreciated .

Marie Riddick · Answer

Thanks Stephen.

Stephen Nicholson · Answer

@Marie Riddick

I haven't done anything in Texas myself, but I read a topic on here a few days ago that said assigning contracts is now illegal in Texas. I havnt researched it as I am in LA, but I would do your research before jumping into anything

Ned Carey · Answer

@Marie Riddick There are contracts in the fileplace, under the tools tab, that you can download.  But as @Guy Gimenez said will you understand them?

You need to understand what the contract says. There is an unlimited possibility of terms that can be in a contract. These are all negotiable.  Whether an earnest money deposit is refundable and under what conditions would be a great example of what can be in a contract. Do the written form you are using have the terms you want to agree to?

Now in addition to understanding the terms of a contract, you need to know the legal requirements for your state.  Generally states will have specific requirements of disclosures that can simply be added as adenda to a contract.

It is a good idea to at least learn the basics of contract law. A site like NOLO Press is likely to help. Google is your friend.

Which Wholesale Contracting are you using?

Most Popular Reply