Hi, I am in CA and looking to Wholesale and Assign Properties. I have the C.A.R. contract which, I have been told, is great. But I am confused about filling out the FINANCE TERMS in a way applicable to my end users since I assume they will be using mainly Private and Hard Money.
The contract seems geared towards the conventional purchase of a home. I want to submit contracts that will facilitate my buyers/assignees.
Below is an example of what confuses me. Section 1, A through D, pertains to the OFFER. I can handle that. Section 2, A through L, pertains to FINANCE TERMS. I’m going to copy out a little of 2C and 2D to ask if I should get stuck here or go down to 2L which is the ALL CASH OFFER.
2.c FIRST LOAN IN THE AMOUNT OF…$______________
(1) New First Deed of Trust in favor of lender, encumbering the Property, securing a note payable at maximum interest of ________% fixed rate, or _______% initial adjustable rate with a maximum interest rate of __________%, balance due in _____________years, amortized over____________years. Buyer shall pay loan fees/points not to exceed _______. (These terms apply whether the designated loan is conventional, FHA or VA.)
(2)__FHA ___VA (The following loans only apply to the FHA or VA loan that is checked.) (etc)
2.d ADDITIONAL FINANCING TERMS__Seller Financing (C.A.R. Form SFA); __ secondary financing (C.A.R. Form PAA, paragraph 4A); assumed financing (C.A.R. Form PAA, paragraph 4B)…$___________
Then, down at 2L is the ALL CASH OFFER. (If checked): No loan is needed to purchase the Property. Buyer shall, within 7 (or, _______) Days After Acceptance, provide Seller written verification of sufficient funds to close this transaction.
In a nutshell, would it be too simplistic to check that ALL CASH OFFER box? Can anyone shed some light on this question? This contract is 8 pages excluding any addendum or such. It is a lot of paperwork since many offers need to be submitted in order for one to be accepted. But that’s ok as long as I ultimately get it! :help
Any tips on what to watch out for or make sure of would be appreciated. Thanks.