Where to get contracts to use for wholesaling

Question

I got wholesaling contracts from a guy on youtube (FlipwithRick) that teaches a lot about wholesaling.  I read over the contracts multiple times and watched the video of him explaining them.  They sounded good to me.  I took them to my local attorney who has done wholesale deals before and asked if he would look over them to make sure they were legal for the state I am wholesaling in. He came back with a bunch of questions.  He told me he would suggest I get a different purchase agreement contract.  Where do I even get these from and why does he think it's bad?  Whenever I hear wholesalers talking about contracts it sounds like they just have one they use and they don't even check it with an attorney or anything... maybe I am wrong, but that's what it sounds like to me.

Daniel Paloscio · Answer

In Florida we have the FAR-BAR contract. It's a purchase and sale agreement that is created by the Florida Bar & The Florida Association of Realtors. It's pretty standard for on-market transactions. You should have something similar in your market. I would start there by reaching out to local realtors, asking them if they can send you a copy of the most recent revision so that you can review it. I have used the standard FAR-BAR to wholesale many deals.

You can always hire an attorney to make you a contract for future deals, but you want to be careful with using template contracts off of the internet or from guru's. Each state has its own set of rules and what might be common in one state might be illegal in another. I would go this route until you decide to have an attorney draft you up your own contract. If you use an attorney familiar with wholesaling, it should cost you around $500.

Another thing you could do would be to reach out to local wholesalers in your market and see if they are willing to share their contracts with you, then have your attorney reviews those purchase & sale agreements.

Let us know how it works out!