Best way to create a contract?

Question

Hey everyone, I’m Alex. I’m focused on wholesaling, vacant land, and renovating older properties in the DFW area.

I want to make sure I handle contracts correctly from the start. Is it feasible to put together my own purchase and assignment agreements using reliable Texas-specific templates, or would you recommend having a real estate attorney draft or review them?

I’d appreciate any template resources or attorney recommendations.I’d also love to connect with local investors, wholesalers, buyers, and sellers, hear about your experiences, and pick your brains. Feel free to dm me I'm always trying to meet new wholesalers in the area!

Divin Kanyama · Answer

@Alex Erickson Texas-specific templates can be useful as a starting point, but purchase and assignment agreements create real legal and financial obligations. Having a Texas real estate attorney review the documents—and explain when each form is appropriate—is a worthwhile upfront investment, especially when wholesaling, dealing with vacant land, or renovating older properties.
The agreement should clearly address assignment rights, earnest money, inspection and termination periods, title issues, access, disclosures, closing costs, and what happens if the transaction does not close. Vacant land and older properties may also require additional diligence around zoning, utilities, surveys, environmental conditions, permits, and liens.
Connecting with experienced DFW investors is a great way to learn local practices, but legal documents should be tailored to the transaction rather than copied from another deal. Building relationships early with a knowledgeable attorney, title company, lender, contractor, and investor-friendly CPA can prevent expensive problems as the business grows.

Ashish Acharya · Answer

Alex, I’d be careful about relying on a generic template for purchase and assignment agreements, especially when you’re dealing with Texas-specific requirements.

A template can be useful for understanding how these agreements are structured, but I’d have a Texas real-estate attorney draft or review the forms you actually plan to use. It’s much cheaper to get the contract structure right before your first deal than to find out later that an assignment, disclosure, contingency, or other provision created a problem.

Since you’re doing wholesaling, vacant land, and renovations, you may also end up using different agreements depending on the transaction. I’d build a relationship with an attorney who understands investor transactions rather than trying to make one generic contract work for everything.

On the business side, I’d also get your entity, bookkeeping, and tax process set up before the deal volume starts. Wholesaling income is different from long-term rental income, and keeping the activities and expenses organized from day one makes things much easier as you expand.

Feel free to DM me, I’d be happy to share a few resources on the tax and business side of building a real-estate investing operation.

Best way to create a contract?

2 Replies