Are You Using These Contract Clauses When Wholesaling Real Estate?
Posted by Patrick_Riddle
Filed under Private Money Articles
The quickest way to make money investing in real estate is wholesaling.
Basically, you find a great deal, get the property under contract, and assign the contract to a buyer.
That’s it!
… and often times you can walk away with $3k, $5K or even more (in the video below I show you a check for $6,700 from one of my more recent wholesale deals).
And you can do this…
– Without cash
– Without good credit
– Without ever owning the property
– With virtually no risk
Pretty cool, ehhh?
Well, having the right clauses built into your contract can make or break a deal.
So, I decided to shoot a quick video and outline some clauses that you want to make sure you have in your contract when wholesaling real estate.
If you’re new to real estate investing and don’t have any contracts, I have a great resource for ya… more on that in a min.
Check out the video below now…
As I mentioned at the end of the video, we came across a great resource that you may want to check out…
It’s the best darn software I’ve seen for auto-filling your contracts… and for right now, you can grab it for free. Plus you get 9 contracts with it – a purchase and sale agreement to use when buying and one for selling, an option agreement to use when buying and one for selling, an assignment contract, and more.
>>> Grab Your Contracts & Auto-Fill Software HERE While It’s Available for FREE<<<
My favorite thing about it…
I can even upload MY contracts into it and auto-fill ’em, and either email or print ’em out. A great time saver!
Anyway, thought you’d enjoy these wholesaling clauses and free tools.
Happy Investing!
– Patrick
P.S. – Got something on your mind? A question. A thought. A tip. Leave it in the comment area before you go.
Thanks Patrick this is very cool.
And a big shout out to Tiffany on her first Deal.
Were happy for you!
Hello! I am in Columbus Ohio……….. I have a few deals that I’m working on now as we speak and one I made an offer @ $3500.00 and his Property being vandalize…….. he wants $ 12,000 for it and in my opinion will not get that much due to a complete rehabbed ect……………………… What do I do next!!!!!
Second is….. I have a divorce Lady, and she have a Mobile Home with a Deed/ Title Paid in full @ 24,900 with Lot at $300.00 a month. Taxes @ under $ 300.00 or $ 500.00 a year…… And she is asking $ 14,000
But do not want to take under $ 10.000….. Is this Property wasting my time…… But could be a quick close and I do not want to buy at $10,000……. What is my next step!
Thanks Again!
Hi Patrick! Just wanted to say that you guys have the greatest practical tips of anyone I know!! Most of the programs out there skip over this kinda stuff and its the stuff that can really make you money or lose you money! I just lost $1600 from not knowing how to direct my title agents on remaining funds on the HUD1 form. It was a short sale and there was $1600 to return to seller….that should have gone in my pocket for admin fees. I didn’t get anything out of the deal other than the house. Lesson learned!
Thanks Again for not forgetting about this stuff!
Couldn’t get the link to the Contract Crusher to work. Even when I tried to leave the site, and the popup came up, that link didn’t work either. Am I too late???
Bryan… you’re welcome buddy. I’m sure Tiff appreciate the shout out too 🙂
Curtis… on the first deal, if you’ve run the numbers and they don’t work, put the seller in your follow up log. As my mentor said, “The fortunes in the follow up!” On the second deal, it may also simply be a good follow up BUT…
Another way to offer a higher sales price to a seller, is to offer payments over time. If they want all cash at closing, then the offer will have to be low. BUT, what if you could offer them full price, if you got the terms you wanted… for instance, purchase price of $14K with $1K down and $300/mo until paid in full. If the seller accepted that offer, you just structured a ZERO percent loan… huge! Maybe that would make it a good deal for you, maybe not. This is another way though to think about the box on deal structuring.
Charity… wow, what a compliment, “you guys have the greatest practical tips of anyone I know!!” Thanks for sharing that with us!
Sorry to hear that you lost money on that deal… that’s never fun. But, it’s happened to me too. The important thing is the lesson learned. That’s what you got from that deal 🙂
Terri… you should still be able to get contract crusher. Here’s the link:
http://www.privatemoneyblueprint.com/free-contract-creator
If you have further issues, let me know.
~ Patrick
Thank you,Thanx A million Patrick Riddle great go and keep me up to date with any and ALL YOUR GOODIES AVAI’TO HELP ME AND OUR COMMUNITY THROUGH THE NET CHEERS AND GOD BLESS MAN
Hey Patrick,
Thank you for the valuable information. I use 3 contingencies in my contract, but never thought about asking for permission to market the property. My concern is lately that my buyers are saying that I have to many “loop holes” in my contract, which has cause me to lose the deal, is there a way to get around this?
Thank you in advance!
Patrick… you’re welcome man. If I can help ya out with any questions, toss ’em in the comment area.
Rohmell… if you’re getting some blow back from your buyers because there are too many “loop holes”, maybe they aren’t the right prospect for the deal. I do my best to only work with highly motivated prospects in all parts of my biz… motivated sellers, motivated buyers, motivated private lenders. So, I would recommend building your buyer’s list more.
Happy Investing guys and gals!
~ Patrick
I like the fact that you are making it clear to be up front and aboveboard with the wholesaling. Too many unscrupulous wannabe investors (or clueless noobies) out there who put an overpriced deal under contract and have no intention to ever close it unless they find a buyer and just leave the seller high and dry after the option period is up. There is nothing wrong with contracting a property strictly for wholesale IF the seller is aware of the situation and agrees to let the wholesaler proceed as you show here. For new investors out there use these clauses it is the difference between being legit and being a scam artist.
Great tips…You are appreciated. Would you use this contract in a probate deal?
Tim… I agree with you. Best to be very upfront with the seller and let them know exactly what you’re doing. Thanks for the comment.
Robert… great to hear from you. Yes, you could use the contracts and clauses I’ve suggested in a probate deal.
– Patrick