Can I Sign Arizona Profit Sharing Agreement Template

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real estate purchase and sale agreements they're vitally important in every real estate investors business and that's why I provide my followers with my free ironclad contracts because let's face it this is the most important document of the entire deal and it's also one that you should never have to worry about so today I'm going to show you how to fill this puppy out so you can lock up more deals with confidence [Music] [Music] what's up clever investors Cody Sperber back again in in today's training video we're gonna go over how to fill out an acquisition purchase and sale agreement now this is the document that you're gonna use whenever you are locking up a potential wholesale deal now in full disclosure my attorneys they created this purchase and sale agreement for me here in Arizona I use this every single day in my real estate investing business so when you click the link below and you get your hands on my free contracts I really recommend that you go to a local real estate attorney and just get them checked out before you actually deploy them in your wholesale business now real fast before we dive on in if you're brand new to the channel welcome I'm glad you're here this is a place where good people just like you come to learn how to build real well through creative real estate investing so make sure to specific like button if you get something from this training video and subscribe and turn on post notifications so you're notified whenever future videos are posted so drop me a quick comment down below letting me know that you're new and I'm gonna reply back with a free gift worth over $97 all right let's dive on in so here is our purchase and sale agreement for the buy side and what I want to do right now is I want to go into the computer they're in the computer into the computer onto Camtasia on a screen share and I'm just gonna show you how to fill this thing out I know it's gonna be difficult for us to you know switch gears and stop looking at my luscious beard and start looking at this amazing engaging contract but that's what we're gonna do right now so let's uh let's dive on it all right what you're looking at right now is our acquisition purchase and sale agreement now this is a seven page document that is an investor friendly acquisition purchase and sale agreement like I said earlier my attorneys created this contract I use it all the time in my real estate business I don't have a tremendous amount of time to go in-depth on explaining every single clause or term that's in this contract just know that what makes it investor friendly is the clauses and the terms they lean in your direction meaning they protect you the wholesaler from the highest level there are two sides of a real estate transaction there's the acquisition side and there's the what's called the disposition side so buying and selling and what you want is terms that protect you when you're buying in terms that protect you when you're selling because there's it's totally different you don't use the same contract for both sides of the transaction when you're buying from a motivated seller you want your earnest deposit to be fully refundable when you're selling to a cash buyer you want to lock them into the deal and make their earnest deposit non-refundable so different terms so I'll quickly go through this if you have any questions you know I would obviously take this to a local attorney get it checked out ask them questions and/or leave a comment down below with any questions that you have and I'll try to answer those but make sure you click the link down below and download this contract so you can go through it with me while I'm explaining how to fill this thing out alright so at the top this is where you put your information and the sellers information right so in this contract is entered between sell quick for cash LLC which is my buying entity my wholesaling entity and or assignee that means I can wholesale it with an address of I highly recommend when you put your address in here you do not use your personal address that you go out and you get APO box okay from like a UPS store and put your p.o box in there put your telephone number here and that is all of your information and you're the buyer and it's entered between the buyer and the seller and so you'd put the seller's information right here right so it might be John Smith it might be John and Mary Smith it might be the one two three Main Street Trust where whatever is holding title to this property is what you're gonna put right here with the taxable mailing address of and you're gonna put their taxable mailing address their taxable mailing address is not necessarily the physical address of the property that you're buying right we're gonna put the property address down here the the taxable mailing address is where they get their mail so maybe it's an absentee owner they live in Kansas and the properties here in Arizona all right I'm gonna send I'm gonna put their Kansas address up here opening just means we're gonna open up escrow once this contracts fully executed property is where we're going to put all the information about the property and you're going to need two pieces of information and one of them is the property address which is going to go right here so you're basically agreeing to buy this property address but you're also gonna put what is called the assessor's parcel number and that's gonna go right here the assessor's parcel number is to make sure that there are no miss communications when escrow it is opened and you go to buy this piece of real estate sometimes real estate especially if it's in an area where the property is really really old like 100 or 150 years old they might have issues with in the record-keeping system so you always want to put the address and the parcel number so there is no miscommunication let's move on number three purchase price the purchase price to be paid at close of escrow by the buyer for the property is gonna be and you're gonna put your purchase price here so if you're buying the property for a hundred thousand dollars you're gonna put a hundred thousand dollars right here and the next one is your earnest deposit so the purchase price of a hundred thousand dollars is gonna be paid as follows earnest deposit let say you're gonna put $1,000 down you'll put $1,000 right here and the sum the remaining balance of ninety-nine thousand dollars is gonna get paid at close of escrow all right and the rest of this is just some legal mumbo-jumbo basically saying that the money's gonna be held by a third party escrow agent and they're gonna hold all the funds and disperse them accordingly now real quick side note about earnest deposits people come to me and they say Cody what's the lowest amount of an earnest deposit I could put down and I've done it as low as ten dollars I don't recommend going that low but I've done it as low as ten dollars what makes a contract legally enforceable is it has to be in writing both parties have to sign both parties have to be of what they call sound mind meaning you can't be drunk or on drugs or anything like that when you enter into a legal agreement and there has to be what's called consideration past consideration is something of monetary value and that's normally in the form of an earnest deposit so the way people could poke holes into a wholesalers operation is if you create the habit or the practice of only doing like $1 or $10 earnest deposits because you just want to put out a lot of money or maybe you don't have a lot of money or just being you know cheap well they're gonna look at it they say well you never really had intention to buy the property and that's where you can potentially get in trouble is intention so I've put down $10 I put as much as $50,000 my standard practice is if the property is worth 250 grand or less I put 500 bucks and if it's worth 250 grand or more I put $1,000 or up to $5,000 it can get expensive when you have ten or fifteen or twenty escrows opened because this is a numbers game the way I look at wholesaling real estate is I go out and I lock up ten or fifteen deals I might close on five of them all right it's just a numbers game that means the other ten I need to back out of the deal and I want to get my earnest deposit back or I try to renegotiate and get a lower price so I can actually move the deal so put put what you're comfortable with but make sure that it shows the right intention escrow agent this is where you're gonna your closing is going to occur you as the buyer get to pick where your closing occur so you want to pick an investor friendly closing agent so I use Magnus title agency a lady named Moe Perry and her phone number goes here the address of the closing agent goes here close of escrow pay attention because this language is very important the closing date shall occur on or before whatever date you want this property to close because the way I look at it is it's in your best interest when you're controlling a bunch of real estate to give yourself enough time to go and find a cash buyer so you want to extend that time out as far as possible maybe up to 30 days however when you find a cash buyer and you lock them into the deal you want them to be able to close as soon as possible so you want to be able to close on or before the closing date all right it also is good as a selling tool when you're explaining to the seller hey listen I'm gonna close on ur before 30 days but we're gonna try to move as fast as humanly possible because it's gonna take some time for the title to get cleared and for my title and escrow agent to do their job but as soon as they do a lot of times we can close before the closing date so that gives them the peace of mind to sign the contract and move forward with it alright you'll notice in the bottom right hand corner it has an initial box I always have people initial every single page so there is no miscommunication they know exactly what contract they're signing property turnover it's just basically saying they're gonna give us keys by 12:00 a.m. on the day of close of escrow let's say the seller has an issue with something in your contract being a good real estate investor is being what my mentor used to call a transactional engineer and that means you can modify the terms of a contract on the fly and you're really you rarely understand your paperwork so you can make those modifications and get everybody to sign the contract feeling like they got a win-win so let's say they have an issue with this clause maybe it's this one this one a lot I'll give you another example just because people have an issue with this a lot property condition at close of escrow seller shall deliver the property in neat and clean condition well they it might be a hoarder that lives there and they're like I don't want to clean any of this up or maybe you said hey one of the reasons that you want to do a deal with me is that you don't have to clean anything up I'll just take it in it's as is condition well then you get to this thing and it's saying they got a you know neat and clean broom sweep it and they're like whoa whoa whoa that's not what you said hey no problem let's just cross that out you would cross out all of number thirteen and literally both of you would just initial by it you're done with that you move on you've overcome that objection you move on so it's okay to change these terms as needed in order to get the deal done all right so property turnover seller deliveries this is you know some more legal stuff about insurance in claims history if you want to do that I never really do that but it's in here just in case you want it if the property is occupied or being rented out by a tenant you're gonna want rent rolls you're gonna want leases you're gonna want you know information about the tenant and their background eight is all about inspection period now this is your escape clause in a contract so it's really important to get this right now I have it written into this contract that buyer's obligation that's my obligation to close the transaction or subject to the satisfaction of the following conditions honor before pay attention 24 hours before close of escrow so basically I have all the way up until the day before close of escrow to make my decision on whether or not I'm satisfied with this deal and I want to move forward so I can cancel the contract up to 24 hours before close of escrow and get my earnest deposit back walk away and I'm out of the deal all right this is your escape clause buyer is satisfied with you know look let all the reasons why I can back out that I have to be satisfied with the status of title to the property as disclosed by are satisfied with buyers investigations and inspections of the property you know basically it says the my business partners gonna be cool with it I mean I have every reason to back out and cancel the contract and entitled to get a return of all deposits and earnest money's all right so this is your escape clause this is important you're it this is your investor disclosure it's basically saying that you know we are acknowledging that we're a real estate investor that you might be selling for less than market value that I might be flipping the property renting the property making a profit on the property right so it's just clarification remedies if anybody fails to you know comply with any provisions of the contract that it's going to be enforced in the state of Arizona and that any attorneys fees that are incurred to enforce it are covered by the other party and this is all legal mumbo-jumbo this first one is something that you might modify in here it's saying the property is not being used as a rental because the way this purchase and sale agreement is set up is it's a vacant purchase and sale agreement let's say the property was being occupied by a tenant you would just change this and get rid of the word not the property is being used as a rental property and you agree to turn over all rent roles and any other information about the tenant as needed or maybe and the tenant agrees to vacate the property before close of escrow so you can add whatever is necessary to make it make sense to this particular deal the rest of this is just you can read through it but it's just a bunch of disclosures and things about you know what we're gonna do once close of escrow occurs and how to get to close of escrow and that they're not receiving any other offers on the property and that they're gonna stay in compliance with the property and not you know screw anything up they're basically claiming that the property's value is or any loans this is loans and encumbrances so section F is all about payoff and is basically saying loans and in Ritz's secured against the property is estimated to be some amount so maybe the seller says yeah I think I owe about 120 K on the on the house and you would just put 120 thousand it doesn't have to be deadly accurate it just gives us a ballpark so that way when the title or escrow agent is going to close out the deal if there's four hundred thousand dollars of liens and encumbrances but they put in the contract only 120 now they have to start questioning why is there so many more liens or encumbrances what is going on or if they say hey I own the property free and clear and we put zero in here and there's a hundred thousand dollars of liens on the property they can question it all right other agreements means that they're not going to enter into any other contracts property condition that's the one I talked about neat and clean it's not really important marketing is really important because it's basically giving us permission to pre market the property for sale or rent all right this is how we're able to wholesale the deal without getting in it any legal trouble right because it's fully disclosed indemnity and release of claims this is just legal mumbo-jumbo agency this is really important if you're a licensed real estate agent you're going to want to fill this section out and it basically says seller acknowledges that seller has not been represented by the buyer and put your name right here so I put Cody Sperber and or by any representative a buyer with respect to the purchase sale agreement so you're gonna want to put this here whether you're licensed or not because you want to clarify that I'm not acting as an agent in the transaction I'm not pretending to be in a real estate agent and if I am a real estate agent I'm not your real estate agent I'm acting as a principal in the transaction for my own benefit right and that's what this next section down here says all right for your own benefit seller is aware that Cody Sperber put your name in there is a licensed real estate agent in the state of Arizona or is not a licensed real estate agent in the state of Arizona let's make that change and then this lacs last section basically saying that we're not giving you a loan all right we're you're acknowledging that the buyer is not giving the seller a loan for any reason all right we're not acting as a lender in the transaction so you're gonna put your name and you're gonna have the seller initial right here existing financing this just says that we're gonna clear off all monetary liens on the property and we're gonna receive clear title when we go to buy it assignment and release this is more wholesaling language seller agrees and the knowledge that buyer may assign its rights under this agreement wholly or partially to a third party all right our assignment Clause legal mumbo-jumbo this is kind of important upon close of escrow buyer agrees to pay all normal non reoccurring closing costs so this basically saying that I am as a buyer responsible for paying all closing cost this is a hook that we use or a benefit that we use as wholesalers when we show up to a motivated sellers house and we say look selling to me is super easy you sell the property me you don't have to make repairs I'll buy it as is I'll even pay your closing costs for you so it'll be a net number to you whatever we agree on - paying off any liens or debts on the property whatever amount over those liens or debts are you get that as a net number - you because I'm covering all the costs but here's the thing you don't want to cover all cost you want to cover all normal non reoccurring closing costs because I had a transaction one time that you know there was some language they owed money to somebody and they put it in the closing cost section and it was like an extra like six or seven thousand dollars worth of closing cost which was basically my entire profit as a wholesale deal pissed me off because I ended up moving forward with the deal and I made no money on the deal so I changed it to normal non reoccurring closing cost never had that issue again section 22 miscellaneous is all legal language you can read through it as needed the only thing I would change is where the governing law jurisdiction is right now it's in the state of Arizona you would put your state right here your county would go right here wherever wherever your wholesaling properties are just going to change this governing law jurist fiction section and acceptance this is what we call a shotgun clause and or a you know think about like playing basketball you have like a shot clock Clause yeah that's probably better way to say it shot clock and it basically says the contract char remain in full force in effect until you know eleven o'clock or five o'clock Pacific Standard Time on a certain date so sometimes we leave a contract with the seller but we don't want the contract to stay valid forever so this is our shot clock clause to put pressure on the seller to make a buying decision section Q is any other terms or conditions so you might put something in here like seller is leaving the shed in the back of the house or seller agrees shellers seller agrees to you know leave all furniture in the property for one dollar whatever those other terms and conditions are the seller signs here in here if there's more than one seller you sign down here and boom you now have officially completed the real estate purchase and sale agreement on the acquisition side all right guys you now know exactly how to fill out a purchase and sale agreement for your real estate investing business now I hope you enjoyed what we covered in this training video if you did smash that like button subscribe hit the bell you know the drill will do all the things to make sure that you're you know engaged so that way we keep doing fun stuff like this and I can help you take your business to that next level and don't forget to grab my free real estate contracts by clicking the link down below it's also gonna come with some free training videos that's gonna show you how to get out there and actually make money wholesaling real estate all right that's all I have for you in this one thank you for hanging out with me I'm Cody Sperber the clever investor signing off for now until next time take care comb your hair Sperber out [Music]