myEmpirePROSo what is wholesale real estate contract and why should you even care?
That’s simply a real estate purchase contract executed with the intention of assigning the equitable rights in it to another investor.
Therefore the equitable rights is a trade-able entity that real estate investors have built profitable businesses on for ages.
Due to social media, the business is getting more popular and attracting abuse and regulations.
Therefore it is quite important to keep things simple to marketing, value and service to people.
So if you do, you don’t have to worry about regulations.
Did you know Smart Real Estate Wholesaling Can Be Shipped to You
Below is a question for us to address with this lesson…
“I did some D4D and found another property.
And I did some research and learned that the owners (husband and wife) are deceased.
I was able to find the wife’s obituary (she passed after the husband) and was able to learn of her surviving children.
Now I have yellow letters locked and loaded ready to send to them.
But I had a concern in that I couldn’t find anything in the probate records.
No information came up about the original owners let alone information on the property and its value.
I was curious to know if this would be an issue should I get a response
Since there is no record of an heir or personal representative for the property.”
Enjoy the video.
3 Rookie MISTAKES to Avoid
(1) 100 in 1 vs 1 in 100
Rookies spend 100 minutes with 1 lead or piece of data…
As opposed to the goal spending 1 minutes generating 100 leads or pieces of data.
(2) Marketing vs Law
Rookies spend their time trying to learn all the laws and legalities of real estate and wholesaling
As opposed to becoming a master marketer in a digital age to find deals,
Building a massive list of buyer and monetizing the process.
(3) Anxiety vs Curiosity
Rookies confuse anxiety with curiosity.
So curiosity is not trying to figure out how to talk to leads until you know how to generate leads.
That’s anxiety and it kills productivity.
What is wholesale real estate contract?
These are 2 or 3 different legal agreement documents between a seller, a buyer and/or assignor
And an end buyer of a wholesale real estate transaction.
DISCLAIMER: I am not an attorney.
Therefore be sure to verify the viability of this information with investor friendly attorneys in your state of transactions.
Executing a wholesale real estate transaction usually involves 3 different parties.
There is a seller, a buyer who becomes a seller or assignor and an end buyer.
The Contracts Needed for Wholesale Real Estate
Primarily…
There is a purchase and sales agreement between the original seller and the wholesaler; earlier referred to as the assignor.
Also there is another contract representing an agreement that has to be established between the wholesaler and the end buyer.
It can be one of 4 different types of contract.
- An assignment agreement
- Another purchase and sales agreement or
- JV agreement or
- LLC Transfer agreement
So it just depends on how the deal is structured in which the goal is to protect and make all parties comfortable and happy.
How to fill out a wholesale real estate contract
We cover some more details on how to fill it out on this blog post not too long ago.
So all the contracts involved in a wholesale transaction needs to reference the parties, the subject property
And all consideration (how much goes to who in exchange for what.)
There may be other things needed depending on the state in which the transaction is happening in.
But all documents can always be fixed if needed up to the closing table with contract addenda.
Therefore there is no reason to worry about wrong completion of contracts as long as you have a motivate seller.
Assignability in a real estate contract
So you make a contract assignable by adding the “and/or assigns” clause to the buyers name.
That is to say, you can assign the contract to another willing
And able buyer who wants to take over the equitable interest of the contract from the original buyer.
But it is worth noting that some transactions may have restrictions and won’t allow this.
For example, short sales transactions have restrictions that prevent assignments and even double closings in a lot of states.
So my advice is to let your investor friendly title companies and attorneys figure these things out.
As a result of paying them handsomely and:
- With a good deal,
- Willing and able buyer and most importantly,
- A motivated seller…
They will figure it out.
You can download the contracts with out books below.
