The right Wholesale Contracts

10 Replies

Where do I go to obtain a Purchase and Sale contract, and an Assignment contract? And furthermore, how do I know if it has the right verbiage in it with the right clauses and disclaimers? This is important because I do not want to end up in trouble. Please help someone...

I was told by my attorney that to protect yourself ans have a legal contracr you need to use the purchase and sale contract in the state the property is located. You can usually get them online at the states real estate commision website. But, usually not a commercial contract. Or call a realtor ans request they email one to you. Don't forget the addendums for financing, etc.

Don't forget to have cash to close. Writing contracts with no ability or intention to close is called FRAUD. 

Mr Thedford, are you insinuating that wholesaling is illegal? If I make it clear to the seller that I am assigning the contract to an investor and if the contract is assignable, then how is it illegal if it is done in honesty an openness? If done properly wholesaling is legal. I am here to learn how to do things legally and right.

Hey @Wendy Schultz my suggestion would be for you to find an attorney who's wholesale-friendly from a fellow BP member and then reach out to them and get a contract through them professionally. Even if it means that you have to pay a hundred bucks. You always want to make sure that you're safe. Also, I would recommend getting an LLC and signing with your LLC on your contracts so that you have less liability :)

@Wendy Schultz Don't mind @John Thedford , he's just upset because he had to move back in with his mom since his real estate investor bashing business isn't working out.

As for contracts. I recommend using an option instead of a purchase contract. A simple option contract should be legal in every state (double check with a lawyer of course) and because it's an option you aren't obligated to close, so you don't need any escape clauses.

That results in a much cleaner contract.

Originally posted by @Wendy Schultz :

Mr Thedford, are you insinuating that wholesaling is illegal? If I make it clear to the seller that I am assigning the contract to an investor and if the contract is assignable, then how is it illegal if it is done in honesty an openness? If done properly wholesaling is legal. I am here to learn how to do things legally and right.

 My posts refer to FL and no other state.

@Wendy Schultz Have you checked out some local real estate investor meetings? Most can help you with guidance and documents on what they regularly use. Also find cash buyers at these meetings and get a thorough understanding of their criteria, what they look for exactly in the numbers, learn how to arrive at those numbers and if you discover a property that falls within their criteria then you can have confidence that you can structure a deal there.