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Add Money Transfer Agreement Template eSign

what's up everybody scott perry with ninety solution and today we're talking about what a purchase agreement is why it's important for a real estate deal and how to fill one out but before we get started make sure you smash that like button if that's something you're into and subscribe down below for more real estate related content [Music] within the spectrum of wholesaling a purchase agreement is most likely the first thing you thought about before starting your own business in fact if you don't already have one go ahead and head over to our website at the indiesolution.com contracts and download it i mean it's free why wouldn't you this will not only give you one to use for your next property but will allow you to follow along as we walk you through filling one of these out later oh and in case you weren't already aware a wholesale purchase agreement is the sold document that gives you the right to purchase the property you want a wholesale it's typically a one-page document that has the clause and or assigned which essentially just gives you the wholesaler the ability to sign that purchase contract to an end buyer without having to buy it with your own money now we highly recommend you having a one-page purchase agreement before you start marketing your properties so that one your in-buyer doesn't cut you out when they see it and two it keeps everything easy and straightforward for your title company of choice at closing as a wholesale company we have seen a lot of different purchase agreements and all of them make it harder for all parties involved just use a one-page purchase contract ours is free let me show you how to use it okay now that we're on adobe sign you can see how we have the one-page contract i'll scroll through it real quick here and then let's jump in on filling out this contract so starting at the top it's very self-explanatory i'm not going to type it in right now but we'll walk through it this agreement is made this day you're going to put the date so first of january 2021 between seller that's going to be the person that has the right to sell it so make sure that you do check and make sure that the person that you're talking with that says they want to sell you this house actually has the right to sell the house so go ahead and put their name there the buyer is going to be you or your company so for us it's the indie solution is the buyer and then there's a couple things that we'll highlight as we go through and one of these is the thing that makes this a wholesale contract is right here the and or assigned so even if you have a different version of this make sure you have the and or assigned some people do it as a separate paragraph where it's actually an assignment clause where it says we're allowed to sign this contract yada yada we just put it right here we feel like it's more clean and or assigned that gives us the right to then assign this contract to the buyer then you've got the as is people want to see that obviously you're buying it as is your wholesaler street address self-explanatory you're gonna put the street address legal description is not super uh important as long as you have the street address but you can put it in there if you feel like it we leave it there in case uh sometimes you'll do if you wholesale land you'll need the legal description because there's no street address so we have done that once before county self-explanatory of the county it's in personal property included we put n a for those of you that may not be familiar with this is sometimes if you go into a situation where there's something of value in the property maybe there's an antique car that's left there um and you know you're saying hey i want to buy this but i would like to keep the car as part of the deal you could put the car make and model and then the vin number and that would include that in this contract so that way they don't go there and drive the car out the day before closing and then your price you know you're overpaying for the property so you can do people i've heard people do that with boats before stuff like that so we leave it in a here we've never done it we almost did it this weekend actually believe it or not i did our first one where a car was involved all right so here's the math section so at the top here you've got cash to sell or closing that essentially is just your offer so let's say for today our example is we're going to offer 50 000 for this property right we take care of the title fees and transfer fees all that kind of stuff you know typical wholesale deal so we're going to put 50 000 in the top now let's pretend they owe 10 000 on the property on an existing loan so you're going to write 50 000 as your offer then in existing loan in liens you're going to put 10 000 new loan to seller that's just there for the creative financing option we really put n a there most of the time we actually have a different contract we use for creative signing but this gives us the option in case for some reason we want to do it on this contract so what you're going to do is you're going to do cash seller closing which is your offer minus existing loans and liens and that's going to give the balance due seller here so in our example it'd be 50 000 the offer minus 10 000 that they currently have as a mortgage so once title takes that escrow money pays off the loan the cash to the seller at closing they'll actually get a forty thousand dollar check so you'd go ahead and write forty thousand dollars in this block so this is really the one that the seller's worried about hey how much money am i actually walking away with that i can put my bank account that's this number right here then we've got the legal sections this has been vetted through our state through some people that we know so as well as lawyers and stuff so you know again make sure that you check everything i know illinois has very specific rules and stuff like that so you want to check with your local state laws and all that stuff as far as wholesaling is concerned and make sure that this is all legal so i'm not going to jump into the legal section here but i will highlight some things so for closing date and transfer of title typically you're going to do 30 days out so if it's first of january you're going to say okay we'll close by february 1st now just make sure that you give yourself enough time to find a buyer get their escrow money and then get closing set up with the end buyer if you think that may take 45 days you can do a 45-day close it's really up to you and the seller the one that we just did this weekend the seller actually needed 60 days to move out so we did a 60-day close so that's just where you're going to have a conversation with your seller as well as knowing your situation with your buyers list that's where you're going to put in that date now a big big tip that we've learned that we now do as a practice right here closing will be held out what we used to do is we would we use the same title company we have two of them that we use exclusively and really one of them that we use exclusively we would actually write their names in this block now what we ran into was one time we wrote the name of the block we got the contract signed by the seller deal was locked up took it to title and title said hey we're we're pretty overloaded right now it's probably going to be three weeks or so just to get the title search done so we actually had to go back to the seller and write in a new title company so what we do now is we actually put tbd in this blank to be determined and that has really helped us out since then because we've had other issues where maybe title gets backed up with a lot of title searches that they're doing and you have to use another company if you put tbd there it gives you the flexibility to where you don't have to get the contract resigned so it just comes off more professional and i explain that to the sellers say hey we normally use these people but if they're busy we may have to use somebody else so just again open communication with the seller is really what makes the deal work very smoothly now where all the questions come from is the inspection clause right here because you just said above you're buying it as is but now you're telling them that there's an inspection the highlight on this is i'll read it real quick this contract is contingent upon the buyer's inspection and that's where the questions come in because they ask hey i thought you're buying it as is and then it says and approval of the property prior to transfer of the title so what i tell them is well we work with other investors and you can tell them about the whole selling thing if you want normally i don't just say wholesaling because nobody knows what that is so i say hey we work with other investors and if they think that i valued this wrong like hey i thought it was a ten thousand dollar rehab when realistically they think it's a thirty thousand dollar rehab that's what we're talking about we're talking more about approval of my partners in the deal and that's how i explained it to them so yes we are buying it as is just reassure them you don't have to clean anything out we're not gonna come back and say hey we saw mold in the corners so we're not going to buy it that doesn't apply again more legal stuff check with your local state laws and all that kind of stuff and then down here you're going to sign it we use adobe sign because then they can just digitally sign it we can just email it to them makes it real smooth and crisp so again we send it to them have the seller sign it first another pro tip before you have the buyer sign it we have we actually signed it first originally and we had a seller take that to another wholesaler and say hey they already signed this can you beat their price so make sure you have the seller sign it first and then you sign it did you learn anything from this video that you didn't already know let us know in the comments below and make sure to like subscribe and share this video with anyone you think might benefit from watching it i'm scott perry and i'll see you in the next video