Contracts and Offers

What are some must have in the contracts for purchasing and wholesaling?

Hello everyone,

I've been a DG family member since 2009 and have never sent a post. Today I've decided to break out of my shell and go for it!

Do any of you ever use non-disclosure/circumvention agreements when dealing with general contractors for repair estimates. My fear is that some of these guys are investors themselves and may try to make an offer on the property I'm interested in behind my back.

I'm especially concerned when getting repair estimates on properties I do NOT have under contract yet.

Any advice would be greatly appreciated. Thanks!

Roni

I just had an offer accepted this past weekend. I personally dont have the ernest money to put up myself. So what is the best way to get around this while I market the property to buyers? I have 13 days left for the inspection period.

I've been told many different things about both. I know dean talks about using FMV and I have investors wanting to know ARV. I have read every thread here and a few other sites but, no one is giving solid answers on how to get a solid ARV. So I'll provide what I used on my first deal as I learned it and everyone can tell me where I went right or wrong..

I just finished a my first deal (believe to be a fail) and still unsure of my ARV and this is why:

Deal House:
year built: 1970
sq/ft 1990
3 bed /2 bath with bonus game room with a bonus room from no permit DIY. So listed 4/2

Hi D.G family Im new to this Im ike an engine reving
the pedal & about to shift to drive Im renting this
place from my lanlord @ $1,250 monthly it's a duplex w/another tennant renting near me, she wants to sell
Should I check if it's assumeble or any morgage,leins
square footage & divided w/realestate calculator.
I have to do more research & commputing,what I want to know is what form should I use & also for the tennants next door!
, This is going to be my very first deal Im so exited can't wait to shift to drive Thanks!

Ps.Pls.P.M If anyone can HELP!!!!

OK, if a Contractor tells me the repairs are going to be $44,000.00 and he later goes over budget in the amount of $15,000.00 and the new repair budget is now $59,000.00 what can I say or do to control an original quote in an estimate from the Contractor?

I have seen public documents recorded with expenses listed. Is this a good way to protect myself and to keep a paper trail of all agreements?

What do you folks do to protect yourself from construction cost over-runs.

How many of you Investor's, even do this?

Do you add in a percentage of perhaps 3% of the Contractor's quote as a cushion for mistakes in estimating?

Vacant two story home and a seller who MAY be ready to sell.

I have not approached her, because I know her house needs a lot of work and I do not know how to come up with a sensible total for repairs, which means I need a Contractor.

If I bring a Contractor over and he thinks it is a good buy, he could make an offer to the seller and undermine my interests if I do not have a right to buy the house. The Contractor will have more knowledge of Repair Costs than I will.

Without knowing how much to fix this house, I will not be able to make a sensible offer. I could be way out there.

How do I protect my interests in this type if situation?

Wer have a wholesale contract and we found buyer, but the buyer wants to do owner financing. We asked the seller if he was willing to do that and he said yes. But now the question is, are we entering territory of being an agent now? Is it possible to do an owner finance as a wholesaler? If so, how?

This is my first deal. I found a sweet deal and have a G.contractor looking at the property on Monday. I know it has some cosmetic work needed, not sure but, I think it's foundation is okay, the seller's disclosure noticed spoke of neutral settling and some soil movement but no water damage that I was able to see as a result. Here is the deal though, I have a cash investor to buy the property if it is 70% ARV - repairs. The problem is in the assignment fee. I know this because she tried to recruit me a while back to do cold calls for her and drive around to find vacancies for small profit and she told me if she knew how much a wholesaler was making in profit she would totally negotiate it down so that she can get as much profit to herself as she could.

I want to start ahead of time I am not allowed to give legal advice. I'm just sharing some common clause/contingency understanding after viewing both the TREC One to four family residential contract (resale)-this is a purchase agreement form for anyone new- and the investor disclosure statement and seller's acknowledgement form (this is a binding agreement if signed by both parties). At least in Texas as our laws allow even verbal contracts, I am unsure of other states.