Wholesaling Real Estate CONTRACTS – Top 8 [MUST HAVE] Things You Need in Wholesaling Contracts 2019


Are you interested in wholesaling real estate but you don’t have the right contract you don’t have the right purchase agreement You don’t know where to start today right now. I am going to deep dive the eight vital essential most important Aspects of every single wholesaling real estate contract then every wholesaling real estate contract must have let’s get started Hey guys My name is Tom Krol America’s number one home selling real estate coach and we are going to deep dive right now the 8 most important aspects of every single wholesaling real estate contract I’ve also prioritize them the most important to the least important this way. I’m not gonna waste your time now Let me say this before we get started I am NOT a real estate attorney consult a real estate attorney about real estate contracts Make sure your attorney reviews your contract provides you with your contract. They are the experts. That’s who you should listen to anything They say is more important than what I say. So let’s get started number one. Most important every single Wholesaling real estate contract must be assignable That is the key to the wholesaling Is that if you are going to put a house under contract and you are going to assign it to a cash buyer? You must have an assignable contract now if you’re using a far more contract or other contracts Some of them are automatically not assignable. So be cautious here every contract must be assignable number two You must have an out on your contract what that means is is that you have An inspection period or some way to cancel the contract So if you put a home under contract and you’re at the wrong price You’re too high. You made a mistake You have to have a way to get out of the contract that can be an inspection period but make sure it’s in the contract And as a side note, make sure if you do Cancel the contract. Sometimes you have to send a cancellation a Notice, so if you do have to do that in writing make sure you’re aware of it Number three guys. This is so critical your contract must be as is you are purchasing the property as The reason that that is important is because sellers who sell our home at a discount They are looking for a fast cash transaction. They’re not looking to fix their house up So always make sure that the seller knows this is a this is a selling point in the contract that it’s as is number four The buyer pays all the closing costs. That’s you and the seller pays Everything all of the liens against the title. So for instance one of the majors another selling points that you have as wholesalers You’re gonna tell the sellers that you are paying all of the closing costs are not aren’t going to be any real estate Commission’s or fees that that you are gonna pay the closing costs at the title company That is a great selling point But the seller has to understand that the seller is responsible for all of the liens against the property That could be a mortgage that could be a hospital lien. That was put against the home a tax deficiency Anything like that is going to be paid at closing by the seller so make sure that that’s in the contract and make sure that the seller is aware of that number five is important also that is a deposit whenever you put a home under contract to make it legally binding there has to be a Deposit the key here is keep this deposit as low as possible. Number one and number two I like to drop off our deposits at the title company rather than giving it directly to the seller Make sure your consult you’re a real estate attorney about how to do this and what the lowest dollar amount should be but you do Not need to impress a seller with a high deposit. It should be as low as it possibly can be number six on the Wholesaling purchase agreement is so important and that is a place for all the sellers to be able to sign now This sounds like something that’s silly but everybody forgets it right when they’re when you’re buying a house There are usually multiple people on the title Make sure that you have a spot for every single person if it’s a husband and wife they both have to sign the agreement Number seven, you must have access to the property. This is critical. So make sure that it’s in the contract This is especially important if you have a landlord who is selling the property a tenant who’s living in it? Make sure that you have access to the property and that you’re gonna have permission to enter the property After they sign this agreement, of course, that is critical Okay, guys number eight is gonna blow your mind. And this is something that you must run by a real estate attorney Some wholesalers will use a real estate agent to list the contract for sale on MLS now This is super advanced and I do not recommend this for newbies and make sure again that you run it by our real estate attorney But in the contract if you’re going to do that, you must disclose it in the contract it should say in your purchase agreement that you have permission from the seller to advertise the property and To put the property on MLS now, you would never sell a property without a real estate license But in some states find out if a real estate attorney is allowed to place your the property of under contract on MLS Be careful on this one. Make sure you check it out with the real estate attorney guys Okay, guys, I want to know comment below What do you think is the best way to present this contract to the seller? Is it when you first get there and talk about it right away? Or is it after you build a rapport and you’re ready to close the deal that you bring the contract out? Let me hear below Thanks for watching that video about the 8 most Important parts of every wholesaling real estate contract if you are excited about hole selling real estate and you don’t know where to get started Click Subscribe and I will see you on the next video. We will continue to provide the instruction No education step-by-step how to do this. So click Subscribe today. See you guys on the next video. Bye

22 Replies to “Wholesaling Real Estate CONTRACTS – Top 8 [MUST HAVE] Things You Need in Wholesaling Contracts 2019

  1. Best way to present the contract is to not refer to it as a contract. Has a negative connotation. I'd say use purchase agreement. And always leave one whether they accept the offer or not. This way they have something to look at and think over. Once they sign it then place the EMD.

  2. Thanks Tom for these tips, I think I would give the person a chance to look it (contract) over, then think about it, you don't want to be accused of taking advantage of a distressed seller.

  3. Hey Tom I’m New and this is a question I’ve had also. How do I get the contract to the seller if I don’t meet with them because they’re an out of state absentee owner or example I’m in Orlando and so is their property but they live in Miami. And also how does it work with the title company how will the cash buyer close in this situation what if the cash buyer is in New York? I’m not referring to virtual wholesaling but it seems like that’s what it is. I would guess this is common? I’ve gone driving for dollars and when I look up the properties I find the owners not here in Florida. What do I do I want to start calling these people lol but the contract process isn’t clear and I haven’t heard anyone explain this on YouTube.

  4. hey Tom Im silvana from texas I have tried to buy a list by list source as you taught in Morris Invest But is very expensive and so small

  5. after you do a walkthrough while building rapport. but there's one thing i'm still trying to figure out. after i get the contract signed , do i then take it to the closing attorney to pull title or do i wait to get a buyer so their earnest money can pay to pull the title. because if not i would have to pay for that, right?

  6. Can’t you pay their liens and give them a little cash in hand if the deal numbers are correct? Motivated sellers such as pre foreclosures I’m referring to

  7. Hi, question ok so I finally found a title company that has their own contract and I see on #18 that it says This agreement may not be assigned by Buyer without the consent of Seller. This agreement may be assigned by Seller and shall be binding on the heirs and assigns of the parties hereto. Is this good on this agreement concerning the assigned recommendation??

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