Texas Wholesaling - Explaining the TREC to sellers

[Jeffrey Harden]

Hi, everyone

This is my first post here on biggerpockets, it's nice to meet everyone! 

So just like most newcomers here, I'm fairly new to real estate/wholesaling and been doing a lot research to grasp a good understanding of it. I've been reading a lot of old discussions regarding the topic of wholesaling in Texas and found the information to be very valuable. Lately I've been stuck on whether to use the TREC contract or a one page purchase contract for the assigning process. I did my research on the TREC through Youtube videos and learned the importance of it. However, I feel like when presenting the contract to the seller they'll feel intimidated by how thorough and lengthy it is compared to a one page purchase contract. I noticed here on biggerpockets that it really comes down to the wholesaler preference on which contract they want to use. I wanted to know for those who uses the TREC, do you sometimes experience resistance from the seller when presenting the contract? If you do, how do you help better explain the contract to them in order for them to feel more comfortable?

[Lydia R.]

@Jeffrey Harden Personally I always use the TREC, for several reasons. 1. Because its safe to assume they used a TREC contract to buy the property so they should feel confident using the same contract to sell it. 2. Title companies dont like non TREC contracts 3. If my seller takes contract to an attorney to review attorney will say yeah its a standard TX purchase agreement.

With regard to having seller write something on a legal pad...I actually just got done reading a book called the psychology of influence that describes why this works. We(people) become more committed to things that we write down. We become more involved. So I let my sellers handwrite any concessions that they want me to make into the special provisions section of the contract. I also have them fill in the closing date. It makes them feel more committed to their decision, they are owning it by filling in parts of the contract instead of just signing a bunch of papers.