Investor Quick Tip- Hidden Gem in TREC contract

      This is for all of the wholesalers here in great state of Texas who are hustling and making a positive impact in their lives and in their communities. 

     From a wholesaler standpoint, this is exciting news and can help you eliminate any headache when it comes to getting a property under contract, especially if things fall through and you cannot provide the solution you were looking for. Keep in mind that I highly encourage all wholesalers to have a system in place and be able to execute on the majority of the deals you acquire (don't give the rest of us who are doing it right a bad name... know what you're doing). We're not here to not live up to our word, instead, we're here to provide a service to distressed owners and make an honest living, ensuring reciprocity on all ends. 

     With that being said, I came across a quick 2 minute video earlier this evening that conveyed some information that I was absolutely clueless to up until now. I found this to be utterly beneficial from a wholesalers point of view and I hope you do as well. 

     Since I have been wholesaling, I have gone about structuring my contract in regards to the due diligence period (aka inspection period etc.) under Paragraph 23 (Termination Option). However, this is ALL about to change. 

The hidden gem that i'm referring to is found in Paragraph 7 (Property Condition) B(2).

7B(2): "Buyer has not received the Notice. Within _________ days after the effective date of this  contract, Seller shall deliver the Notice to Buyer. If buyer does not receive the Notice, Buyer may terminate this contract at any time prior to the closing and the earnest money will be refunded to Buyer. If seller delivers the Notice, Buyer may terminate this contract for any reason within 7 days after Buyer receives the Notice or prior to the closing, whichever first occurs, and the earnest money will be refunded to the buyer." 

     In short, if the seller does not provide a Sellers Disclosure Statement within the agreed upon time frame, then you are free and clear of any obligations. If the seller does provide a Sellers Disclosure Notice, you can terminate the contract within 7 days after you receive the notice or prior to the  closing. In other words, you are protected on ALL ENDS if you structure your contract to where 7B(2) is checked. Sound too good to be true? I thought the same thing, but it's written directly in the contract for YOU to be able to use and protect yourself as a wholesaler. 

     I urge all wholesalers to be transparent with the sellers and let them know what your intentions are before you acquire the property. Integrity goes a long way in this business. So does protection. Protect yourselves with this clause while at the same time doing everything you can to find an end buyer and a solution for the seller. 

Happy Investing!

Justin Peters

Real Estate Professional