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Contract Approval Form 2014-2019

due to several requests on today's video I'm gonna do a tutorial on exactly how to fill out a real estate purchase and sale agreement and specifically what you need to include to make sure the contract favors you the investor now this is a video you don't want to miss because I'm also going to show you how to fill it out digitally in minutes so that you and the seller can sign it electronically making it completely paperless not to mention easy and convenient I'm also gonna share with you how to get my contracts for free all of that and more coming up I just you know are the nation's leading expert on flipping houses and if you're new here to make more money in less time flipping houses so you can live your dream life subscribe to my channel click the bell I kind of get notified when new videos are released okay here it comes I am NOT a lawyer nor am I giving legal advice you are a big boy or big girl you are responsible for your actions so all we see competent professional legal advice before buying and selling real estate as a house flipper after you've gotten a lead and you've crunched the numbers it's time to present a written offer to the seller now this is called a lot of different things but the most common is a purchase and sale agreement now it's a legally binding contract that commits the seller to sell you the property and prevents the seller from selling the property to anyone else so it's kind of a big deal and whether you're gonna fix and flip the deal or a whole sell it the purchase and sale agreement is the same and in the beginning when you're new it can seem overwhelming or intimidating at least it did for me however once you understand the mechanics of the contract it's actually pretty easy which you'll see in a minute now before we dive in there are a few things you need to know right off the bat that are important to understand first real estate is governed and regulated state by state that means the contract law varies from state to state and that means the contracts themselves are going to vary from state to state now licensed real estate agents are required to use their state approved contracts and so if you are ever making an on market offer where there are real estate agents involved you don't need to worry about providing the purchase and sale contract they will do that they will even assist in filling it out but you still need to understand what you're filling out and what you need to include which cover on this video so keep watching now if you're not licensed and if you are dealing directly with an off-market private seller and there are no agents involved then you don't have to use the state approved contract necessarily you can if you'd like in fact this google state approved real estate purchase and sale agreement in your state and you can probably find a free pdf version but you could also come up with your own contract between you and the seller which I'll show you how to get my purchase and sale contract for free so stick around the reality is you can write a contract on a napkin between you and the seller and that be considered a binding agreement so let me make sure I'm clear here if the deal is on market the agent will provide a state approved contract if it's off market it doesn't have to be state approved contract and you'll need to provide your own since a seller isn't going to have one now as a real estate investor you always want the contract to lean in your favor that means when you're the buyer you want a buyer friendly contract with clauses that favor you and if the rolls reverse and you're the seller you want a seller friendly contract in this case since we're talking about getting contracts from motivated sellers that you can flip for profit you want a buyer friendly contract so let's jump in and take a closer look at the paperwork as well as what buyer friendly clauses you should include and some other cool tips now for the demo I'm going to use my purchase and sale agreement that is just one of the dozens of tools included with my flipster deal management system and if you've never heard of flipster i'll tell you more about it in a minute but what you do is first once you get logged in is you're going to go to the offer generator Pro which is the contract builder tool click add new then choose a property from your drop-down menu now before we start going through and filling this out digitally notice there's this little eye for information now if you hover over it it will give you a prompt as to what goes in that field ok so the first thing that you usually see is information about the parties involved meaning the buyer and seller now a little trick here where it says seller are normally just put owner of record that makes it really easy to fill out same thing for the seller's address I'll put address of record now buyers where you'll put your name or entity and you could add after your name and/or assigns which means you'll buy it or anyone else that you assign the contract to this is a wholesaler thing but it's unnecessary since the contract is already assignable you don't need to add and our signs so why raise any red flags with the seller next typically on the contract is the property address sometimes it will ask for the legal description I normally don't worry about that but you could google it or you could get a title or real estate agent to provide that now some contracts have a clause for personal property this would include anything you want included in the sale that is not fixed to the house for example appliances now my rule of thumb is if there is anything there of value I ask for it I once asked for a car that was in the garage it looked like it had been sitting there for a long time so I added that to my contract under personal property and the seller agreed to it okay next is price this is where you put down your offer price and usually the amount of earnest money now on my contract I actually have two options for earnest money because sometimes I'll offer a really low earnest money to put down upfront and then a bigger earnest money later after the inspection the reason why I do that is because immediately after getting an executed contract I'll find a cash buyer and I'll get a big earnest money from him or her which I'll use to pay my additional earnest money next is how you're paying for it usually it's just cash even if you're using private money or hard money but if you're getting financing include the minimum requirements now keep in mind this is a contingency that protects you if you don't get the financing as described here and you can back out of the contract number seven here is basically your as is Clause this looks differently on some contracts but basically you want to let the seller know that you're buying the house and it's current as is condition and not requesting they make any repairs number eight a here gives you a window of time to do an inspection this doesn't necessarily mean that you have to hire a professional inspector it just means that you have a window of time to perform any due diligence and make sure the deal works now if you discover something or realize the repairs are more than you anticipated you can back out of the contract during the inspection time without any repercussions so rather than putting a date instead I write ten days from accepted offer that makes it easier to fill out the contract and it means you don't start on the clock until all parties have signed now a B basically says if there are any issue that you request the seller to take care of he or she has a deadline to respond now this usually isn't applicable because you're buying the property as is and you're not going to be asking the seller to fix anything number nine is lead-based paint claws now those are standard make sure you learn what the rules are with homes built pre-1978 number ten this is the closing date again rather than putting a date I always put down 30 days from accepted offer or how many other days you need to close numbers 11 12 and 13 all have to do with the title and making sure you get a free and clear title with a warranty deed now all you have to do is put the state where your deal is located in these three blanks 14 15 and 16 are all legal things that is pretty standard number 17 is if there are any agents involved which like I explained in the beginning usually isn't the case otherwise you'd be using their forms so just put n/a number 20 is if you wanted to include any addendums to the offer now 21 is where we want to include some things that are in our favor so if there's not a specific clause for these items than wherever there is a blank spot write them in first this specifying who you want to use for the title closing or attorney depending on what state you're in we want to make sure that the closing happens with a investor friendly closer especially if you're wholesaling so put closing to take place at then fill in the blank with your title company number two is making sure you get access to the property if it's vacant put buyer permitted access to property via a contractor lockbox this will allow you to show the property the cash buyers if you're wholesaling and if you're fixing and flipping this will allow you to get bids and plan your rehab if it's occupied by the homeowner put seller to give access with 24 hours notice to show property to others number three is if you're going to wholesale your contract add a clause to have the right to advertise put down buyer permitted to advertise the property and the fourth clause is closing fees if you commit it to the seller that you would pay all the closing fees then add buyer to pay all closing fees except any outstanding property taxes or liens now let's go to 23 this is important because it says that an electronic version is acceptable and binding this is important because we send this document via email for digital signatures so there's no printing or and it makes it super easy for the seller to sign I'll show you in a second number 27 is important because it forces the seller to respond to your offer by a certain timeframe I normally put one day or two days now once this is all filled out you want to click Save then when you're ready to send it to the seller check this out click sign and send this agreement next follow these instructions first double-check and make sure you have everything you want in it read through it again carefully and make sure you didn't miss anything then add the name and email of the other party that should sign this document the signee next is where you sign the document click start then add your initial then you're going to sign it then just click finish agree and now try to send to the seller you can see it prefilled out an email that's going to go directly to the seller and then you just click send congratulations you've just sent the contract over to the seller to sign he's gonna get it via email so you can follow up with him make sure he got it he'll be able to sign it just like you did digitally and send it right back to you once you get it it'll notify you in the system and you'll have that executed contract now saved digitally inside your flipster system so you can store it track it manage it from there it even allows you to send reminders just in case they don't get it or they don't send it back right away you can send it again as a reminder and make sure that they sign it now if you'd like a blank PDF copy of my contract I'll give that to you for free just click the link in the description but if you want the offer generator Pro software where you can create your purchase and sale contracts digitally save them and even send them for electronic signatures then you really should get my all-inclusive house-flipping deal management system called flipster now if you've never heard of flipster not only does it create your purchase and sale contract but also your assignment contract for wholesaling along with dozens of other tools to help you organize streamline and automate all of the steps of flipping houses including finding and funding deals so if you're looking to do your first deal or you're doing deals every month flipster can take you to the next level if you're into flipping houses you owe it to yourself to check it out to learn more and see it in action just go to get flipster com or click the link in the if you learn something on this video show some love hit that like button right now and leave a comment let me know your biggest takeaway from this video I'd love to hear from you and if you haven't yet be sure to subscribe to the channel I'm dedicated helping you make more money and less time flipping houses so you can live your dream life and while we're on the topic of paperwork once you have the purchase and sale agreement executed with a motivated seller if you're going to a wholesale it to a cash buyer you're going to need an assignment agreement so watch this next video to learn how to fill that form out and to get it for free so watch that now and remember it's not about the money it's by having the time and freedom to have the do and give everything you want in life that's what it's all about I'll see you on the next video