Knowing the basics

Bird Dogs, Wholesaling
1

I downloaded a purchase contract online specifically for the state of California. They said that these are legal documents. Can I really use these docs or do I have to use the ones that real estate professionals use?(My broker said that people who don’t use the ones provided
by the DRE are all doing it illegally) Do I need to throw in some
disclosures and if so, what kind and how do I find out? Do I need to consult a lawyer?

Last, when wholesaling, how do I sell the contract to the buyer? Do I just make another purchase contract for me and the buyer?

I appreciate all the help. Thanks. :smile

2

i think the broker is full of crap…although i’m not familiar with the laws in CA and i’ve always heard CA is like a different country so perhaps he’s right but I doubt it.

He’s comfortable with those forms so he’s inclined to tell you that you must use them. Attorneys are the same way. When I first started out I went to several attorneys who tried to tell me buying houses “subject to” was illegal. BS. it’s not illegal. they were just clueless about that aspect of real estate law and instead of admitting it they tried to convince me it was illegal so I would do things “their way”. the way that was comfortable for them. I just got up and left their office until I finally found an attorney who had a clue.

3

It is a contract.

You can write one on a napkin and still be valid.

I would recomend you though to use the standard one. Get one from an agent.

4

Thanks a lot for all your help. I really do appreciate you guys taking the time to help us rookies.

5
Last, when wholesaling, how do I sell the contract to the buyer? Do I just make another purchase contract for me and the buyer?

How is this typically done? Without doing a double closing, would you create another contract to assing the first contract to the buyer?

When does the wholesaler actually get paid? Before, during or after the closing?