Lawyers and Wholesale contracts

13 Replies

Did anyone go directly to a lawyer to get their wholesale contracts? What is the ball park figure to get your contracts drawn up?

@Rhonda Parker

I am a newbie wholesaler but can tell you that you can find many wholesaling contracts just by googling. I call it a "purchase and sale agreement." Here is a great video that helped me learn. Check out a few other videos while you're on youtube

https://www.youtube.com/watch?v=nfVamo743_0

Thank you so much I New as well many people tell me not to use docs found online as they may not outline everything you need to keep you covered legally and state specific 

@Rhonda Parker Good thinking, Rhonda. Some contracts you will find online contain provisions which are basically an admission that you intend to commit a crime under local law. 

If you don’t know anyone that can forward you state specific contracts they are using for their deals, then it would be worth paying a few hundred bucks for a lawyer to draw them up. It’s best to CYA! :-)

thank you everyone for your input and insight 

@Rhonda Parker , Good post 

To be on the safe side, If you find a contract on google I would still run it by a attorney and have them review it. Better safe than sorry!!! To have them just simply review a document should not be to expensive and can raise your level of confidence when you're ready to do the deal. 

Originally posted by @Jack Douglas :

@Rhonda Parker , Good post 

To be on the safe side, If you find a contract on google I would still run it by a attorney and have them review it. Better safe than sorry!!! To have them just simply review a document should not be to expensive and can raise your level of confidence when you're ready to do the deal. 

I would actually go further... take what you think is a decent template to the attorney; describe exactly how you plan to invest in real estate and where; and ask the attorney to edit/prepare both a purchase agreement as well as an assignment agreement. The same PSA can be used for different transaction types if you create a check-the-box type of agreement.

@Tom Griner

Great information, I need to transform a few of my documents to easily accessible check-the-box type of agreements so it makes the process more uniform throughout and scalable. 

all great ideas and input thank you all so much for responding! 

Great discussion everyone. You always want to have the contract reviewed by an attorney because when you need legal services because you will while wholesaling, you can have that attorney represent you and "THEIR" contract. If they are a good attorney they will stand by their work and represent you. I've learned from experience you will have sellers try and back out of the contract because another wholesaler offers more. Also the other wholesaler will try and poke holes in your contract show them how they can back out of their agreement with you. If you have an attorney they can make a courtesy call or even a certified letter explaining the legal damages they may face by breaching the contract. Again this is from experience

@Marcus Maloney do you recommend custom contracts from RE attorney over using the state approved purchase contracts used by real estate agents?

@Steve Card I would recommend using the state contract it may be a little lengthier than one specifically created for you. However, the state contract has been vetted by multiple attorneys and its already done for you. If you're a licensee you have to use the state contract, but save yourself a few thousand dollars and use the state one.

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