How to get your buyer to sign a lease to own agreement online

Question

Hello all, I am a new wholesaler just getting my beak wet. I have found someone interested in closing a deal. Ideally I would like to just get this BP contract I found under the file place signed online so I can get the ball rolling but I am not technologically inclined and I'm having trouble wrapping my head around this. It is a purchase agreement pdf with option to assign. If anyone has any feedback for me please drop some nuggets of wisdom. Thank you

Bill Gulley · Answer

LOL, "I'm wrong" nope, not at all, you are in error. Read carefully where I was saying "as a business"!I know that video well, Brian Gibbons posted it months ago and there are some key points made by those regulators that wholesalers aren't listening too, all they want to hear is that you can assign a contract. Listen to what they are saying about "intent" and "ability to perform". Without true intent and ability to perform, you have a voidable contract, this was not touched on I don't believe in that video or by Jeff on his web site, but this is basic contract law. Listen carefully to the regulators, they bring up this point and mention an invalid contract. If I have the intent to close as stated in the contract and the ability to do so, on my own as stated in the contract then I have a good, binding contract. If something then happens after my signing that contract, like I want to do a different deal, I am totally free (unless stated otherwise in the contract) to assign that contract, with or without compensation, to another party. That is ethical and legal."As a business" changes things, when you have no intent or ability to follow the contract as the principal buyer and you assign to another buyer AND you do so repeatedly, over and over, that is when you can be considered brokering without a license, it has become a different animal like a mule to a donkey. Doing repeated transactions without ever closing in your name becomes a business operation, you're not dealing in good faith, you don't have that intent and ability along with the right to assign a contract as I mentioned above, you're "dealing" relying on another parties intent and ability to perform. That is brokering.Jeff Watson advocates the same thing I do, you can go to his web site; That is, in operating as a business you need to close in your name or in the name of the buyer.You can legally and ethically wholesale, but it isn't as the gurus teach it by simply assigning a contract. Use transactional funding and buy in your name, buy with seller financing, close in your name then payoff the note a few minutes later. Buy in the name of an entity and change partners, admit partners or transfer the entity. Why don't the gurus teach it this way, (?) because it is more complicated for simple minds and requires more effort in trying to sell their product of guru junk. But, it's not that complicated, it's something that needs to be learned, there are various approaches that can be employed but none will simply be assign a contract to a real buyer as a business operation. Now, I use to work with one of our Missouri Real Estate Commissioners, I've spoken to her many times and Mo. has the same view as other state like Ohio's stance, in 2017 more attention will be paid to illegal wholesaling as this activity is getting more prevalent, that means more crack downs and fines. If you think Jeff advocates simply wholesaling by an assignment as a business operation, please let me know, show me and I can be on the phone with Jeff in minutes. Now, folks, please go learn real estate before attempting to deal in real estate. Good luck :)

Steven Leigh · Answer

One way to do it is to send a mobile notary to their house with the contract. This is a good way to make sure it gets done properly and in a timely manner as well, as some buyers and sellers will just take forever to send a contract back when you email it to them. Good luck.

Account Closed · Answer

Assignments are basically built in exit clauses, unless a contract says you CAN'T assign it you can in most states. If you're using a purchase agreement it means you intend to buy the property, if you're using a binding contract with no intent to actually close on the property (the "real" definition of Wholesaling) then you're in a grey area legally. Use an option contract instead or find a transactional lender to do back to back closes with. Remember: Intent to close and ability to close validate purchase agreements.

Bill Gulley · Answer

Paul, you're going to justify whatever fits your opinion, just as other wholesalers do I'm sure. The term in law is "ability to perform", not if you're "capable" of just getting some deal closed.If your contract states that you aren't buying, but selling to another party, you're off the hook as to ability to buy, but now you'd basically have a listing agreement.I suppose you didn't ask the right question of your lawyer, I hear that a lot that my attorney ......., if that is the case go ask specifically if you're whole strategy of assigning contracts is good to go, ethically and legally. If they say sure, find another attorney! I don't argue with those who know very little or those who pretend they do, they will never learn what they don't want to know. With that, I'm done in this thread.Now, Merry Christmas and enjoy the holidays! :)

James Wise · Answer

Paul, One way to prove you had the intent to wholesale those 20 properties would be to simply read this post you placed in a public forum telling the world you intend to wholesale 20 properties.If it quacks like a duck.......

Paul Amegatcher · Answer

Bill,I'm not an attorney so I will leave the legal advice to those at are. My understanding from talking with my lawyer is that "Brokering without a license" comes down to "intent" and "capability". So by definition if I close on 10 properties in my entity name and also wholesale 20 properties how can someone prove that I did not have the "intent and capability" to close on the 20 properties that I wholesaled. Since there is evidence that I can and have closed on 10 properties. This really is a matter for the courts but I will still stand by my assertion that wholesaling if done correctly is legal in Ohio.

Bill Gulley · Answer

No Paul, intent and ability to perform goes with each contract you enter. The "majority" of your deals shows your true intent, the mode of operation, like; "we do some deals correctly but most we don't we just assign as if we were brokering" does that sound right? Or even...Most of my deals are done legally and ethically, but some aren't......Why not go with "All of our deals are done ethically and legally"? That's what you need to be saying to any regulator, attorney or judge!If folks would spend half the time learning how to do things right the first time instead of trying to figure out how to avoid rules, regulations and laws, they'd be much further ahead. Ask an attorney to explain the "intent" of law rather than the "word" of law. Those without legal training need to stop looking for loopholes in the words and understand the intent, it will be more to your intent as to how you will be judged. :)

Paul Amegatcher · Answer

So by definition as long as a wholesaler can prove that they closed on a few deals themselves that would show that they have "intent" and "ability to perform". Meaning you could wholesale as a majority of your business as long as you close on a couple of properties a year in your entity name.

Zack S. · Answer

I use HelloSign for signing documents online. It's free for 3 documents a month. You could keep making accounts if you really needed. Of course it lacks the whole notary part.

Paul Amegatcher · Answer

Bill,Your are wrong in this statement. "You should know being in Ohio that assigning contracts as a business is considered brokering without a license. Now, if you have a license, you'll simply be in the arena of unethical dealers, but that doesn't stop many, that would then be up to a broker or the real estate commission in ethical dealings." Ohio law does not consider assignment of contracts as brokering without a license. The expert on this is Attorney Jeff Watson out of Cleveland, Ohio. I'm going to link his interview with the Ohio Department of Commerce Division of Real Estate: http://watsoninvested.com/wholesaling/In this videos they talk about legal ways to wholesale in Ohio. Wholesaling is legal in Ohio if done correctly.