Contracts and Offers

I have read a lot in here about wholesaling and will probably get started unless I find out its illegal to assign contracts in my state. How do I find this out? Any suggestions?

This info will go a long way in helping those trying to dicsover the difference between corporate entities. Please READ ON!

Choice of Entity 101
by John Hyre

One of the most common questions that real estate investors ask is: Which entity should I use? The correct answer usually depends on a large number of details…the exact nature and size of the business, the investor’s source and type of income, the number of family members, etc. This article will set out some general rules for picking a structure. Your mileage may vary based on your own personal facts and circumstances.

Here is the latest response I received from an investor who is offering to sell properties he/she aquired via quit claim.

"I have these properties under contract and will be assigning the contract to you. Once you make an offer, you provide me the name/company name in which you want to purchase the properties and I will send you out all the contracts. You can use your own title company or ours (all information will be with the package I send you). I don’t handle any of your money. All monies are handled by the title company.

I asked a couple of RE attorneys who place lots of offers through their realtors every week how to get around having to put down earnest money on every deal that is accepted. (Not talking about FSBO's)
A person who makes lots of offers could go broke trying to find all that earnest money on every deal that is accepted!

They said that they write a promisory note in place of the earnest money when making lots and lots of offers. On closing day the earnest money is paid by your end buyer. They told me to try it...it works many times.

This is the form in Deans new book. I tried to recreate it since I couldn't find it anywhere on the site. It is on page 162 of Profit From Real Estate Right Now.

I created it in the Works program and had Rina to convert it to a JPEG so it could be posted. Thank you Rina!

Escape Clauses And Getting Out Of Contracts
By: Matt G.
Submitted: 12:00PM on Friday 15 August 2008
The author has permitted the reprinting and redistribution of this article.

GETTING OUT OF CONTRACTS

When it comes time to get out of a contract you will want to have set things up correctly ahead of time.

In real estate, as in almost everything in life the advantage goes to the one in control. Putting a property under contract even before all the details are worked out puts you in the drivers seat. And thats where you need to be. When you find an opportunity that looks good, always think about quickly getting it under contract. The contract gives you control and you will always have clause that will allow you to exit the deal if your due diligence (inspections, conveyances, zoning research, etc.) shows that you need to get out.

This is an actual purchase agreement/offer that has been completely filled out. This one was prepared by the realtor with my specs. I dont use the simple one because I have found the dont really work for me unless I am presenting them to an owner directly for owner financing deals. In that case the simple the better.

I hope this helps.

** This is just a general purchase contract you should edit it accordingly to pertain to you and your state laws. Select it below in Word format and edit it.

These are in now way intended to imply that they are any better then the ones Dean have posted under Forms and Docs. They are here to add to your files for future use if you so deem necessary.

Contracts are legally binding agreements and are usually the most critical element in a holding together a real estate deal and protecting you when things go awry.

Weak or improperly drafted contracts can expose tort that can hinder your deal. Any advice or recommendations posted in this section should be reviewed by a qualified party, such as an attorney before you implement it.