Hi Everyone,
Just getting my feet wet and have had incredible luck. The first two properties i looked into are wanting to sell out of necessity. Lucky me! I have my cash buyer lined up already interested in both and one on standby. Neither of us are in a huge hurry so it looks like this could happen in the next 2 weeks. Ive opted for for disclosure so everyone knows im making something on these; so it wont be a shock to anyone in the end. Ive done quite a bit of reading but i wont give me experience.
Ive seen many different types of purchase agreements/contracts. All a little different. Am i better off having an agent draw up the contract or a real estate attorney?
State requirements can vary. What state are you in?
Arizona
Both want really help you. You need right to assign in your contact, subject to inspection, subject to partners approval, a clause that let’s them understand you will be making money on this is a good idea. I have about 3 contracts I use in different situations but here’s the truth. You could have the best contact ever written by Donald Trumps people and still get sued. They won’t win but they still have the right to sue you.
I’ve found that using your state board’s purchase contract is the best. All closing attorney’s & title companies are familiar with it, as well as agents if your seller decides to show it to their friend who’s a realtor. It gives you a sense of credibility & legitimacy, and gives them those nice warm fuzzies.
The inspections clause is not necessary, and if you’re wholesaling the deal most savvy sellers will call you out on it any way, or insist that your partner “approve” before they sign. I find it easier to just add a clause that will make the contract assignable and then use a Due Diligence period (without paying a DD deposit). Most board contracts have a DD clause section. Then I usually ad the following to make the contract assignable:
“Buyer to pay all closing costs. Property sold in “AS-IS” condition. Buyer is purchasing property to
rent, lease, assign, or sell for a profit. Agreement is fully assignable. It is further understood that buyer is not intending to occupy the residence. Seller fully understands that buyer, or its representatives, is not earning any fee or commission from seller. The Seller should not expect any representation by the buyer , and all legal and financial questions should be answered by Seller’s Broker or legal Advisor.”
Very helpful thanks
Realestate investment associations have really helped me. Check for them in your area. The association president (near me) is an attorney and has documents available for download on his website.
Rick
I will do that. Thanks