Best Wholesaling Contract? - Posted by Charity

Posted by JPiper on January 18, 2001 at 20:35:42:

I would hesitate to use a generic contract of any type in a state that I didn’t know the law. Why not take the contract you want to use…and fax it to an attorney in the state in question? For a small fee he can check it for compliance with state law.


Best Wholesaling Contract? - Posted by Charity

Posted by Charity on January 18, 2001 at 17:18:51:

What is the best contract to use for wholesaling to another investor? I found a property in AZ I want to wholesale, but I am not sure if I should use an Option or a regular P&S and if so, which P&S (I have LeGrand, but wasn’t sure if it was the best one or if there was another I should use.)


One time I have to disagree with Jim… - Posted by SCook85

Posted by SCook85 on January 19, 2001 at 07:10:21:

I believe in keeping things simple. Many beginning investors get so hung up on contracts that they never get a deal done. A contract needs very little in it to be legally binding in any state. There are certain things that if they are not spelled out in your contract that are assumed from state to state, but in most instances it isn’t going to be something that comes back to bite you.

At the convention in Dallas (2 years ago), Scott Britton had everyone in the room participate in an exercise where we wrote up a contract to purchase a home that he was showing on his overhead projector. Handwritten the contract was a half a page long and contained everything necessary to be legal and binding in any state.

As far as I’m concerned, if you have 2 people whose intent is to get the deal done, you can write your contracts up on napkins and do the deal. The contract gets you to the settlement table.

I hope this helps.


Re: Best Wholesaling Contract? - Posted by JPiper

Posted by JPiper on January 18, 2001 at 19:41:04:

And then you have to wonder if you’re in compliance with the Arizona law. Maybe you ought to use the Arizona realtors contract and amend it with an addendum after you’ve read it. Long distance wholesaling huh?


Re: One time I have to disagree with Steve… - Posted by JoeKaiser

Posted by JoeKaiser on January 19, 2001 at 09:14:16:

The problem with contracts written on napkins is that the judge tends to look upon them with distain when you seek to enforce them.

Additionally, there are local problems that come into play. Did you know that in AZ, if you don’t include the beneficiary of a trust on the conveyance deed, they can set aside the sale as if it never happened? Me neither.

I’d use the tried and true agreement and modify it as needed, unless of course I was very familiar with what I was doing.


Re: Best Wholesaling Contract? - Posted by Charity

Posted by Charity on January 18, 2001 at 19:58:59:

I guess that is what I am wondering. How do you know what laws apply? Wouldn’t a simple Option contract suffice? I am getting wholesale deals everywhere, and I am just wondering what is the best way to go about farming them out to other investors for a profit, whether it is wholesaling or just straight referrals…