I’m just gearing up to have all the necessary contracts to wholesale, and wanted to know is there any Texas specific verbage I should be aware of? Also, if any of you have a short list you use, I’d appreciate it. Different courses say you need different things.
Howdy Senior C
Here is the link for forms
Most of the time you will use the 1 to 4 family resale form, You can get them at title companies etc. To assign your contract all you need is a one paragraph agreement between you and your buyer stating the amount you will get paid and the earnest money to be put up and your buyers agreement to close on your contract. Title companies sometimes have some forms available for this too. Find a closing offer that is familar with flips and wholesale deals. A lot of them do this stuff everyday and for years.
The short list is to find a good deal and find a buyer for it that is qualified to do the deal. Start the title search as soon as you get the thing under contract. Some Realtors may have even done this for you already, a service some title company offers some Realty companies. Having a good mortgage broker is important too, one that works investor deals and even gard money lenders. Your buyer may already have this but it could be helpful to have one just in case.
Knowing the resell value and the rehab costs would be helpful and here again the buyer will want to form their own opinion and costs breakdowns but it helps to be able to say what the costs will be and what you can sell it for and what your profit range could be.
Hope this helps some
Thanks Ted,
I appreciate the feedback.
Also, are there any sites that have sales statistic info for our local market? How many homes sold, for what average price, etc? Or is that MLS data only?
Thanks again.
Are these the forms you guys use when dealing with owners directly? Or do you have your own contracts for that? I know when dealing with listed property or REOs, you usually have to go with the standard contracts.
Howdy SeniorC:
I just use the standard form. I met a guy once from NY that hired an attornet to draw up a 37 pagr contract with 5 year warranties on all major componants of the building. He could not understand why his offers were not getting accepted at full price. These were REO’s in the mid to early 90’s. No way will sellers even bother to read his contract. Keep it simple. Most REO’s also have additional addendiums that they want the buyer to sign and agree to.
The sales data is available at MLS of course for Realtors eyes only. I remember getting some from info from a Texas research center but I forget the exact name.