Sign North Carolina Banking Contract Now

Industry sign banking north carolina contract now

what is a pay-to-play contract you gotta pay to play so a pay-to-play contract is um is something that's really uh separated me from some other agents in the area because of the way the market is um you have the sellers that have pieces of land that are very valuable and people will come up to them and put their property under contract and the seller might think their land is worth a million dollars and so they'll say okay uh i'm gonna pay you full price a million dollars and the sellers are really really happy and they're like but i have to get zoning approval as soon as i get zoning approval i will pay you your million dollars and they're like great you get the zoning approval i'll get the million dollars well it's not a performance-based contract it's not a pay-to-play contract and so the buyer doesn't have any incentive to make this go quickly the buyer is going to want to set up other people to buy their product or procure a tenant or make things happen that make it more financially sound to do the deal or they're you know in an escalating market they're waiting for it to go up in value so they can take i've i've had people come into this office their property was under contract two three four even five years time they're like this guy's just taking forever to get approval and it's because the the sellers didn't have a pay-to-play contract so the way we make we construct the contract and i'm i'm no lawyer i'm not an attorney but i've been around enough that we know how to make sure the seller has a good good strong contract is we make it more performance-based we make it pay to play so right now in the industry i can't i can't get your money up front like i can't give you like in the residential world if somebody puts their house under contract they're gonna get like a thousand or two thousand dollars due diligence money i can't even get that in a big contract but what i can get is uh will limit the free look to like 60 to 90 days so the buyer is going to have 60 to 90 days to evaluate the property and see if they want to move forward well on like a million dollar property i'm going to have somewhere in the neighborhood of 25 to 50 000 that is going to move from earnest money to a direct payment to the seller so the seller after 90 days time is going to get 50 grand and then because the buyer should have evaluated whether or not they wish to move forward they might not have gotten approval but they see they've met with engineering they've evaluated the soils they've looked at the topography they've done a wetland study they know that it has the potential now to get approval well then they're gonna need somewhere between another three to six months to get uh the actual approval or it can even take 12 or 14 months that's within the range of reason right now in the coveted world and what's going on with so much development so now uh so now that they've gone through that second set then we then we make sure that the seller gets another set of money so they should know that even though it hasn't been approved the county or the municipality has come back to him and said do these things and then we'll give you your approval so they're at at twenty five to a hundred thousand excuse me fifty thousand to a hundred thousand dollars on a million dollar property now the the the buyers pot committed now they have they probably have twenty forty sixty thousand dollars worth of inspections engineering surveys but they've also given the seller a hundred thousand dollars so a hundred and fifty thousand dollars on a million prop million dollar property it's probably worth now they probably haven't figured out where they can now sell their property for two or even three million dollars but um the the seller isn't strung along because of the way that this product has been structured this this contract has been constructed the other thing that we do is uh we get extra tough on them they're like well sometimes hiccups happen sometimes unexpected things happen and so we build into the contract um like 30-day extensions but those 30-day extensions are super expensive like the 30-day extensions could be like 10 or 25 000 a pop all the money this is not money in escrow this is not money in a trust account this is a check written to my sellers that as long as they don't breach they get to keep that money and uh uh you know after a hundred grand if somebody doesn't buy your military million dollar property just do it again do it again keep on doing it but that's what a pay-to-play contract is