Signing 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,
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.
This is the part of the contract that references your intentions with respect to the subject property.
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.
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.
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...
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.
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ABOUT YOUR HOST ::::|
Ola "Tux" Abitogun is the Creator of myEmpirePRO and author of Smart Real Estate Wholesaling. He became a FULL TIME entrepreneur in October 2006.
He is a computer engineer and an engineering management graduate from New Jersey Institute of Technology; (NJIT) class of 2004/5. He was born in Dallas Texas and raised in Nigeria by his Nigerian parents. He considers himself a proud Nigerian American.
Today, he is a marketing addict, trainer, marketing and business consultant, real estate investor and all around serial entrepreneur. Most importantly, he is husband and a father. The professional work he is mostly proud of is personally helping 1,000+ entrepreneurs around the world reach greater heights in their careers.
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