Contracts im using for Wholesaling

[Larry Lee]

Well I've built a small buyers list of 6 cash buyers and 9 investors, my other forum shows the steps I took to build even this small list. Now im on to step 2 and I realize I have no idea how to find a property much less put it under contract, after much searching on this site I have yet to actually find an example of any contract that can be used for wholesaling. While searching the internet I found a flex option contract which i've listed below, those experienced take a look and let me know if its legit to use. Any beginners like me can atleast get an idea of what the contract looks like. Can someone share an assignment contract, what I would have the new investor sign to take over the deal, and a straight option contract? If you have examples that would be great thanks

Example of flex option contract:

Option to Purchase Real Property Agreement

Date: ______________

This option agreement is entered into between the Parties, Seller(s) and Buyer(s), below in consideration of and subject to the following terms and conditions.

1. Parties: XYZ LLC. and/or assigns as Buyer and as Seller

2. Property Address: __________________________________________________________

3. Offer: Buyer has the option to buy the property at $75,000

4. Period: 35 days

5. Provisions:
- Seller understands that Buyer’s intention is to find an End-Buyer and assign this Option Agreement to that End-Buyer for a fee (paid by the End-Buyer).
- Seller understands that Buyer is acting as a principle in the transaction and is not working as a licensed real estate broker representing anyone in the transaction.
- Upon Buyer’s decision to exercise this option, both parties agree to move forward with the necessary standard purchase and sales agreement.
- Seller may cancel this agreement at any time if they find their own buyer.
- Seller agrees to allow Buyer to put a sign in the yard, advertising the property for sale.
- If Buyer does not acquire an End-Buyer to assign this deal to within 35 days of acceptance of this Option Agreement, this agreement becomes null and void.
- All parties agree that property is being sold in “as is†condition unless noted otherwise.

6. Seller Added Comments:_____________________________________________________

_____________________________________________________________________________

Buyer: __________________________________________________ Date: ___________
XYZ,LLC

Seller: _________________________________________ Date: __________________

Seller: _________________________________________ Date: __________________

[Jaremy Moritz]

The only other documents that you might use would be the Seller's Disclosure and/or the Lead Based Paint Disclosure, which you should also be able to find online (again, it all depends on your state's requirements). They are just "checklist" types of forms plus questions about specific items in the house. Most disclosures are similar in nature and just need to be filled out to the best of the seller's ability. I usually get the seller to fill it out after I have a buyer in place and the buyer has already seen the property. It's basically a CYA type of deal - better to have it than not.

Yes, the amount of money you put on the assignment is your profit spread. The buyer's total cost will be the contract purchase price plus your assignment fee and any closing costs not covered by the seller (ie title policy, escrow fees, recording fees, etc.)

The way to figure out your "sale" price is typically ARV x 70% (or 65% or whatever is the going rate in your area) minus the cost of repairs. Depending on the property, you may have to lower the price significantly in order to get a buyer. Other times, you might even get multiple offers at or above list price. Just depends on the quality of the deal.

Don't worry about your profit "taking too much from the deal". If the numbers work, they work. The better you get at negotiating low purchase prices, the more money you'll make on your assignment fees.