New to Investing

I have just started investing, and I have found a potential motivated seller an aquaintence that is moving out of state and needs to get rid of a house due to divorce. I will soon be meeting with them and I am kinda at a lost as to how to sturcture a contract to take control of the property. What contact do I need in order to take control of the property and set up the lease option agreement. I have read so much and now its time to act and I feel lost. I pretty much know what to say and and can negotiate a favorable price of the home but no one has really explained the contract aspect. I have been looking for ideas and know I need to have something iron clad but also give myself an out if I can’t get a tenant buyer soon. Can someone please help me? How do I find a copy of some basic contracts so that I can move to the next step.

I dont have it, but i heard carleton sheets package for only real estate forms is good.


I have forms I just don’t know which to use, of if i have the correct ones, or the right clauses, in the ones I have, or how to use, and not feel stupid, when with the seller. I need somthing basic, like what forms should I bring to meet with my motivated seller. Help is needed fast and in the future if you cannot help directly please do not refer me to carleton sheets!!!

I was not reffering you to his course, just his paperwork, id start with something like a home study course like chuck smiths, thats a very good one, that will tell you what to do with them.


I have forms of all sorts I just don’t know which ones to use for what and just need a guideline. It such a simple question. ie, when you meet with the potential buyer take the (blank) form, use this (blank) form to do (blank) then this form to do (blank) and so on…

Hey Nap218,

Ok…now pay attention and possibly write this stuff down too,ok? I know your expecting something hard but it’s not…(Well… a little maybe)so dont pull anymore hair out of your head ;D

There is a lot of details to this stuff and maybe it would be good to purchase a course that will give you all the steps. I know that if you go to the left column where it says site navigation and click on free investing books…Tim Randle has been kind enough to offer a free 1.30 hr mp3 from Wendy Patton who is a specialist in this topic (i feel) and she also offers a course that gives you the whole enchilada!

Tim Randle…always thinkin of us huh…What a Guy!

We can answer questions and give advice here but to spell out each and every step…well id probably write a course by the time im done and it would be the longest post in REI history!! :o Check it out …in the mp3 she really tells you info. that you can use right now and that can help you for free.

On the surface…if you have forms, 9 times out of 10 they are usually not “custom fit” to your individual specs unless you got them in your state pertaining to the transaction your looking to perform. Always CYA and ALWAYS check with your state laws on the forms that you will be using; and that goes for all of them.(a lawyer can do this for $50 -$90 depending of course on the amount of forms and drafting required)

With that said, you will need a standard lease form with an option clause included (Lease w/Option) to show that the lessee will want to purchase the property within a given amount of time that you set in the contract.

Next you will need to structure a contract with the seller that shows that you will be taking the property under contract disclosed conditions like the usual when purchasing a property…but keep in mind some important details like:

#1 You need to know the sellers mortgage company so that you can make payments directly to them and not to the seller…Extremely important!!!
(He could blow the money and cause the home to go into foreclosure…and that could get sticky!)

#2 Do a Title search on the home for liens and other weeds in the title

#3 Add clause that states in contract that rent will not start untill you find a renter. I know that you have one but…what if he backs out and no money was exchanged?..your covered. This is a “subject to” clause.

#4 Did i tell you there were a lot of little details? Just checking.

#5 Dont forget to get everything notarized and filed along with this most important form…and Wendy tells you about it but its called a “Memorandum of Option” and this makes the transaction seasoned so it doesnt look like your doing a quick flip transaction and this will allow your financing specialist to clear the leasee on closing the option.

I went to and downloaded my state specific current legal forms in a package that contains all the forms i wll need…and because they are downloadable,you can add anything you want to them via microsoft word format and have them ready in a flash and dont have to wait for a lawyer to draft them.

Time is Money!.. and with that i wish you the best and hope you do well with the transaction.


Thanks You,
I have read many books, on all sorts of investing. I have also downloaded forms for most situations, and clauses for my protection. All I need to do now is have an attoney view the forms I need. It just gets thick, when there is so much info and I really just needed someone to walk me through the first step, b/c that is the hardest one to take. I only want to be prepared forms wise on Wednesday, as I feel like I have an understanding of the negotiation process.

Thanks again, and if you have anything else to add feel free to contact me via PM.

What exactly is the assignment of contract , and Quit Claim Deed used for?