Placing Multiple Properties In One Contract

[Levi Bennett]

Hey guys, I'm a wholesaler in Charlotte, North Carolina. I have an opportunity to place two multi-family properties (one 6-plex, and one 4-plex) on one contract from the same owner. 

I had a few questions. 

1. Is there an obvious benefit placing two properties on one contract?

2. What is the process in doing that? Which contract do I use? Do I make my own or is there a good commercial contract for NC? 

3. What are some drawbacks that aren't so obvious with placing two properties on the same contract?

4. Suggestions, recommendations, or experiences are very welcome. 

Thank you!!

[Jiri B.]

That sounds like a really bad idea using one contract for both properties for few reason i can think of:

1. Typically contracts are designed for a single property (one legal description, terms etc) so you would probably need something very custom from your attorney (more cost)

2. If one property falls through, then what happens to the other if they are under the same contract (sounds like lots of legal things to think about)

3. 6 unit property is considered commercial, 4 unit property is considered residential so you would likely have 2 separate contracts anyway if you are using typical relators forms although as a wholesaler you will have something more suitable for your needs and assignments so that might not really matter as much in your case.

I don't see any drawbacks of having 2 contracts and using the same terms (same closing attorney, same closing date etc if that is what you want).

It might also make it easier to find buyers. You have more chance of finding buyers for each individual property then finding one that would be willing to purchase both.