Question for wholesalers in Texas

[Hector Lozano]

Quick question......what are you guys using to place a property under contract? Are you using the Trec forms or your own contracts?  Does it matter which one is used??

[Rick Pozos]

I almost always use the TREC contract. Yes it is lengthy, but covers everything. I let the sellers know that this contract is what every Realtor in Texas uses. They have lawyers who made this contract so there should be no issues with it. I go over the contract with them, and then I leave it with them overnight, then we sign the next day. Do they read it? I hope so. 

It spells out who pays for title policy, survey, pro ration of taxes, etc. There are no issues when we go to closing. As far as the buyer is concerned, if I am wholesaling the contract, they already know the TREC and can see who pays what in a few seconds.

Life is so much easier when you use a promulgated contract that can not be altered. Most serious investors are familiar with the TREC one to four family contract.