WholeSale

[Calvin Avery]

I have a question. I am extremely new to wholesaleing properties, I found a potential house I would like to put under contract, however, a friend of mine is stating that in order to get the house under contract I would need an offer letter with minimum of $1000 and also a Purchase and sales agreement of atleast 10% of the marketed price. Is there a way around this?

[Richard Lowrance]

Hey guys! Great questions and feedback here! 

You can check out this link    http://cdn2.hubspot.net/hub/213639/file-29251598-p...  For a purchase agreement tailored for Boston. I'm not sure if it's the most updated version. 

When I first started out I used only $10 as earnest money. Most sellers didn't care and those that did I developed rebuttals for. At the very bottom of the contract I've attached the link to above, # 30 states "Additional Provisions" ... This is where you will put your clause to protect you in the event you're unable to get a buyer. The clause should say something along the lines of      "Buyer agrees to give seller $10 for a 14 day option period, in which Buyer has full right to terminate contract without penalty, while also receiving full refund of earnest money deposited" 

You can also say something like "This contract is subject to property passing full and complete inspection and second eyes review prior to closing" However I like the first clause better. 

When I speak to sellers I say "We can fill out the paperwork now to get the ball rolling. When is a good time I can get my guys through here to verify the repair # and gather some bids?" 

I always say "paperwork" as opposed to "contract" when speaking to sellers.