TREC Contract

[Reggie Youngblood]

I have a seller that wants me to use the TREC contract instead of one I found on the internet that other wholesalers use. What should I add to the contract besides and/or assigns after my name? This TREC contract is really confusing.

[Rob Chambers]

I use the TREC contract all the time. Make sure you put "and/or assigns" after your name. I also typically pay the lowest amount possible for the longest option period possible - usually $10 option money for at least 10 days. I figure I can wholesale the contract by then, otherwise, it's a bad deal.

If you are dealing w/ an Agent, most Agents want as earnest $ 1% of the purchase price. Here's how I get around that: I put $100 down as earnest $ the effective date of the contract and the rest when the option period is over. So whoever I assign the contract to has to pay the earnest $ balance.

Also, be sure to use Your title company...that way you can be in control of the transaction!

Hope that helps!

Rob.