Contracts and assignment forms

6 Replies

Contact a real estate attorney to write you up a contract. You wouldnt trust someone one the internet offering to give you heart surgery for free.....in the same vein do not trust someone giving you a free legal contract.

Invest in good on-site mentoring.  The one that I know will come to your market, spend 3 days with you not only teaching you but working with you to set up a wholesaling business in your market so that when he leaves, you are up and running and already will have some deals in the pipeline.

He'll not only have the forms for you to use but more importantly, will teach you how to properly use them.

Originally posted by @Account Closed :

Invest in good on-site mentoring.  The one that I know will come to your market, spend 3 days with you not only teaching you but working with you to set up a wholesaling business in your market so that when he leaves, you are up and running and already will have some deals in the pipeline.

He'll not only have the forms for you to use but more importantly, will teach you how to properly use them.

Who is it that you use?

Can we merge threads on here? Someone just asked a similar question. My copied and pasted response:

"If you want a generic purchase/sales agreement, you can generally find those by doing a quick google search. These are the 2 page contracts touted by many gurus back in the day. Personally, I caution against these and never use them. I find that unless a seller is highly highly motivated, these aren't credible or they get rejected (especially if the seller is working with a real estate agent or attorney). It also goes without saying that this would never hold up when purchasing from a bank.

Instead, I recommend using your state's Realtor approved purchase and sales agreement. This way, you know the contract itself is legit and you just need to worry about filling in the proper terms (i.e. your earnest money deposit, specifying your escrow/closing agent, giving yourself a favorable inspection period, etc.).

I firmly believe in controlling the paperwork and filling these in yourself. As an unlicensed person, you can usually Google and find these contracts. Here in Florida, many unlicensed investors fill them out this way without repercussions. Of the thousands of offers I've made, I've only been questioned by a Realtor on this once - He said it was illegal for me to do this since I am not licensed. This is untrue. If you want to do this "by the book" (legally and without violating copyright law), you can lease the Realtor forms and use them as an unlicensed individual. This is my personal preference and I lease my docs from an online company called Altastar for about $129 a year.

Also I personally don't think an attorney is necessary for drafting a purchase agreement and most probably wont understand what you're trying to do anyway." 

Originally posted by @Mike Hill :

Can we merge threads on here? Someone just asked a similar question. My copied and pasted response:

or drafting a purchase agreement and most probably wont understand what you're trying to do anyway." 

I would respectfully disagree with this post, as if something goes wrong along the process, and it is an inevitability that you will face legal problems one day, these standard form purchase agreements are unlikely to fully protect you. I've spent quite a few hours picking over standard forms online and counting the sheer number of legal theories that would allow for their voidance.

I would say, "always hire an attorney when legal documents are on the line". 

Originally posted by @Matthew Kreitzer :
Originally posted by @Mike Hill:

Can we merge threads on here? Someone just asked a similar question. My copied and pasted response:

or drafting a purchase agreement and most probably wont understand what you're trying to do anyway." 

I would respectfully disagree with this post, as if something goes wrong along the process, and it is an inevitability that you will face legal problems one day, these standard form purchase agreements are unlikely to fully protect you. I've spent quite a few hours picking over standard forms online and counting the sheer number of legal theories that would allow for their voidance.

I would say, "always hire an attorney when legal documents are on the line". 

Just to clarify, I agree completely with Matt when he says use an attorney to review a generic purchase and sales agreement found online. This is why I recommended you don't use these contracts at all :) 

Instead, I was recommending using the Board of Realtors State Approved Purchase and Sales agreement. I understand where Matt is coming from and at the end of the day, one must do what he/she feels comfortable with. 

Personally, I feel comfortable using these state approved contracts as a wholesaler and I don't think you NEED an attorney when doing a simple double close.