Question about Flipping Paperwork - Posted by Shawn (OR)

import · February 13, 2002, 12:00am

Posted by Shawn (OR) on February 13, 2002 at 13:11:56:

I haven’t done any advertising yet. To line up buyers I just went through the Real Estate Wanted ads in the paper and called the numbers. I said upfront that I’m new to REI, but I planned to buy fixer-uppers. Would you be interested in buying rehabs? Then I asked if they paid cash, any specific parts of town they liked, price range…that sort of thing.

import · February 13, 2002, 12:00am

Posted by Shawn (OR) on February 13, 2002 at 01:00:12:

I’m getting closer and closer to making the plunge into contract flipping. I just purchased some legal forms and had a few questions.

First off, after I’ve found the property, made my offer had it accepted and all that jazz I put down earnest money of say $500 that I will purchase it within 30 days (subject to my partner’s approval. Are we entering into an Option to Purchase contract now or an actual Purchase Agreement? Which of these two contract am I wanting to have and therefore be able to transfer to my investor?

Can I fill out the necessary paperwork or do I need an attorney or title company? Should I be working through an attorney or title company? Is there an advantage to one or the other?

I feel like I’m to the point that I understand the process of hunting for properties and lining up qualified buyers, but I’m not sure how to put the attorney part of the equation in. I’ve heard you need to put a team together and the lawyer is part of that, but I’m not certain how exactly.

Thanks for your help.

Shawn

import · February 13, 2002, 9:32am

Re: Question about Flipping Paperwork - Posted by Faith

Posted by Faith on February 13, 2002 at 10:32:09:

I’m probably newer at this than you. How did you go about lining up your qualified buyers? Did you advertise?

import · February 13, 2002, 9:21am

Re: Question about Flipping Paperwork - Posted by Brent_IL

Posted by Brent_IL on February 13, 2002 at 10:21:50:

If you have given earnest money, and agreed to buy in 30 days, you have a purchase contract.

If the $500 is not earnest money, but is an option payment, and your contract states it is an option to purchase under these terms, then you have an option to purchase.

Many sellers who will refuse an option offer will accept a purchase contract with a contract clause allowing it to be assigned. I like to spell things out a little more, but you can add ?and/or assigns? after the buyer?s name for the shortened version.

Good lawyers can head off a lot of trouble before it happens.