myEmpirePROSigning the contract is probably the #1 of wholesaling real estate basics; why do you think many rookies confuse a contract with a deal?
I get it… It’s the first step towards closing a deal.
Isn’t that what everyone wants?
So I want to share with you the 4 basic elements that make a contract binding.
But please keep in mind that your contract is in reality only as binding as the motivation level of the seller of the property,
BOOK: Smart Real Estate Wholesaling
FREE PDF | PAPER | KINDLE | FREE AUDIO-BOOK
Anyone can pull out of your contract.
And because you are wholesaling real estate as a game of volume, it just won’t be worth your time trying to sue for breach of contract.
(1) Offer
This is the part of the contract that references your intentions with respect to the subject property.
(2) Consideration
The consideration is what you are willing to let go in order to get your desired intentions accomplished.
In this case, that will be a deposit and/or purchase price.
(3) Terms
This starts with the portion of the purchase price that is yet to transfer to the seller.
But it also includes stipulations and conditions to be fulfilled before the transaction can successfully be declared closed.
(4) Acceptance
This the section that is signed and dated by the last party on the agreement.
Once it is signed by the final party as stated in the contract, the contract is said to have been executed.
A contract does not necessarily need a notary to be considered binding.
For you as a real estate wholesaler, the purchase contract is everything because it holds the equitable interest that you will sell and/or assign.
On the flip side, your relationship, rapport with the seller and their motivation level is the “end all be all” of the deal.
Everything else can be amended, fixed or adjusted on or before closing.
So no pressure needed.
Below is a question for us to address with this lesson…
“Quick question.
I am looking for advice…
When or how does my contract become legit?
As soon as we sign or when it’s in the title company’s hand?
Also, do we sign with a notary?”
Enjoy the video.
