How do you make it so you always have the perfect contract on hand?

Question

I recently read a couple of books by Peter Conti and David Finkel. Both books were very informative and contained many excellent techniques and instructions. They teach you how to find motivated sellers and sit down with them to solve their problems. Then they essentially say "pull out your contract and lock up the property on the spot." My question is this: How do you make sure you have the right forms & contracts on hand when you need them?

In other words, with all the variables that differ from contract to contract (i.e. type of deed, whether there is a mortgage on the house or not, etc.) how do you make the perfect contract on the spot? It's not like you are going to pull a laptop and a printer out of your brief case and arrange something right there, and I can't see it working too well if you tried to hand-write different parts of the contract while the antsy seller was right there.

Is there some basic form that you use to lock up the property, and then you leave take it to your attorney to have him create the perfect contract?

Does anyone know where to find good contracts to use? I purchased some books with templates and clauses in it, but I don't even know where to begin. I was hoping to build a basic template contract to have with me when I visit sellers. I would have it looked over by a lawyer first of course, but I'm not even sure where to start.

And lastly, let's say you have a very full, lengthy contract. Can you then cross out all the sections you don't need, or is there some rules against that?

Sorry if these are stupid questions, but they are so seemingly simple that I can't seem to find them in any books. Thanks guys!

Hattie Dizmond · Answer

@Larry T. is correct...focus on a single strategy.  However, that single strategy could lead to needing to get creative in order to solve the property owner's problem.  Here in Texas, the Texas Real Estate Commission (TREC) has a standard residential contract for use on anything up to and including a 4-plex.  I have taken that standard contract, which comes in a PDF form, converted it to a MS Word doc, included my standard selections, etc.  I also have a standard Addendum I attached to any contract.  I can add the legal description, owner's name & purchase price and have a complete & assignable contract ready in under 5-min.  Generally, I would do that and have everything except the final price filled in, when I get to the meeting with the owner.  TREC also publishes standard addendums to cover things like Subject To deals, Lease Options, Option to Purchase Contract, etc.  All of them have my details in them and area ready for me to fill in details on.

I've also subscribed to Docusign...very reasonably priced.  That means there is no need for a printer.  I can simply Docusign and turn the iPad around for the owner to Docusign right there, then email them a signed copy.  Done.

Bill Gulley · Answer

I carried a box of forms in the trunk of my car, carry addendums to the basic contracts so you can devise specific terms as needed. Carry several ink pens too! Make sure your calculator is working, have batteries. Also carry an earnest money note if those are acceptable in your area, it will save you from putting down real money in many deals.....know how to complete all the forms.

When a buyer or seller is hot ... close and sign, make sure your appointments are made when all parties are present too, otherwise they turn cold and blame it on the one who wasn't there!

Always be prepared! :)

When a buyer or seller is hot ... close and sign, make sure your appointments are made when all parties are present too, otherwise they turn cold and blame it on the one who wasn't there!

Always be prepared! :)

Michael King · Answer

Does anyone know if the Realtor forms can be altered legally? Is it legal to take a word processor and add clauses and additional sections to the generic Realtor contracts? And how about using the clauses from the realtor form in a different contract template?

Michael King · Answer

Thank you everyone for the advice. I plan to focus on one strategy at a time, but I just want to make sure I have the proper paperwork on hand if I need it! Thanks for the template forms as well! I will check out the association of realtors tomorrow and see what they have.

Bill Gulley · Answer

I know the world is changing. I did leases from my computer as tenants don't really get cold feet like a seller/buyer.

With my style, not pushy at all, timing is essential and if I can pull a hard document, I can be going over it explain a contract by the time I get my computer turned on, find the file, and begin. They also can't see the entire document off a computer, a hard copy they can hold while I explain each paragraph. For me, it's quicker and makes for a more comfortable presentation to close on.

Another issue, you can't view page 4 and 6 at the same time as you can with hard copies, my addendums would be addressing insurance subrogation that was contained on page 4 and we are changing things to page 6 or an addendum, it's easier to follow when you can look at both pages with related concerns.

But, it's to you style in presenting the deal, I'm a meat guy, I explain the details and interject more meat as to legal issues that I'm taking care of for them, some or many work off sizzle, not my style as an informer or teacher educating my client/buyer/seller. I don't sell the deal, I explain the deal.

I tried working a contract off a computer screen, in fact, it was hooked into a large flat screen, it was awkward with delays between feeding new pages, time for chit chat that brakes the stride of the presentation of closing the deal, it's not for me.

The negotiation is over by the time it's time to sign, I use a legal pad for that and make notes to put in the contract, when I pull the contracts, it's an administrative matter, it's about the legal side and getting things to closing based on our agreements. I don't like getting off that mission with small talk, that gives time for unrelated questions, or questioning what we already agreed to. Not high pressure, but moving forward at each moment until we get to the end. :)

Brian Gibbons · Answer

Here is a contract that works in principle for sellers (Sale and Purchase Agreement)

https://www.dropbox.com/s/btdjwte4p8k4j57/Standard...

For a lease option assignment, use a letter of intent

https://www.dropbox.com/s/enf31ammsbt4wfm/Letter-o...

that letter of intent has a docusign segment.

************NOTE*****************

See a contract attorney, get a name from your REIA or your chamber of commerce president.  Find someone creative and that has experience in the real estate landlord tenant courts. CYA!

Larry Turowski · Answer

@Michael King Your local association of Realtors likely has the forms you need. Here is one http://www.amortgage.com/xSites/Mortgage/AlexanderMortgageCorp/Content/UploadedFiles/contract%20to%20purchase.pdf

Also, find an attorney and ask them for the forms you need.

That said, don't try to do too many different things at first.  Start with one strategy.

How do you make it so you always have the perfect contract on hand?

Most Popular Reply