How to Fill Out CONTRACTS Purchase and Sales Agreement and Assignments | Wholesaling Real Estate

what is up guys zack in here and in today's video i'm going to go over actually how to fill out a purchase and sale agreement yes those contracts for real estate wholesaling so we know what to do when we're trying to put a property under contract and also i'm gonna go over exactly how to fill out the assignment of contracts too but before i get into it you already know you need to smash that like button and subscribe to get more free value from me remember guys i'm trying to help you make your first hundred thousand dollars in real estate wholesaling absolutely for free so i'm super excited for this video heavily requested i actually share how i fill out my real estate wholesaling contracts because i give out thousands and thousands of copies of my free wholesaling contract and i feel kind of bad i don't think i went over actually how to fill these things out so in today's video we're gonna get into it but remember guys i'm not a lawyer financial advisor cpa i'm none of those things i'm not a realtor i'm just a real estate wholesaler so take it with a grain of salt what i say everything here is for educational or informational purposes and remember i'm not a lawyer here so this is just how me as a real estate wholesaler fills out my contracts so really quickly you might ask yourself zack how do i get your free contract how do i do this so if you are in most states for real estate wholesaling this contract will be good for you now if you're in a state like new york where you need an attorney to write up the contract for you or let's say in texas technically you might be able to get away with this contract in texas but in texas i'd recommend to use the trec contract that's basically the standard one in there but for most states this is the right one so how do i get the free contract what you need to do is go over to www.flipathrick.com contract let's just go to flipathric.com uh we're on the website right here and what we're going to go here is we're going to go to free content now we're in free content here and we're just gonna go here too we got all this free stuff here but right now we're just gonna right now we're just gonna go into wholesaling contract here is we're gonna we're gonna put our email in so so we can get the contract sent to us and then boom the contract is going to be emailed to us remember guys i send out thousands and thousands of these contracts out so google might put me on the spam category because i send so many emails out of free contracts to people so check your spam folder and what we're going to do here is we're going to go to gmail really quick we're right here we got the contract and it's right here so we're going to click download right now and we're going to go download this contract this is the thick of it this is the weed of things now we got the contract this is the fun this is the exciting part here so so now we got this contract here now remember it does say this a lot of people do get concerned when they get this free contract and they see this is it does say this document is for example purposes only always seek the advice of a real estate attorney in the state where you're performing transactions prior to you utilizing any part of the wording from this example document so technically legally i have to make this as an as an example document you need to edit this yourself for your state's rules and regulations i do not want to be sued so do whatever you want this is going to be an entertainment example so what i'm going to do is just do that and i'm probably going to meet a seller right now and use this contract so take it as you will that's what i'm doing so this is this is the actual contract i use so this is the purchase and sale agreement and then below this right here is the assignment of contract what we need to do is keep these separate from each other so the purchase and sale agreement is for the seller and the assignment of contract is actually for the cash buyer the whole entire wholesaling process is i find someone who's motivated to sell their property they want to sell it for cash now they want to probably give up some equity in exchange for an easy cash sale they have a lot of work that needs to be done on the property they don't really want to deal with a realtor and they just want to get rid of this thing and they just want to get rid of the property so what we're going to do is we're going to meet them at their house we're for doing virtual wholesaling we'll actually do this over the phone now if you do this in person before we actually get into this what i'd actually like to do is do a pre-filled out part of the contract before actually me get the price in there and sign the contract easy as that if we're doing something virtually it's all going to be filled out we'll use dot loop or docusign or something like that but we have the motivated seller they're ready to sell we meet them at the property we do our clothes let's say a hundred thousand dollars and yes they said yes to a hundred thousand dollars now you got your contract in hand and now you're sweating your hands are fidgeting you're like this is like this is just like me and my first contract i'm like oh no i gotta fill this out what do i do so let's get into it let's actually fill this out so this is the purchase and sale agreement this is what we're gonna do for me to put in a legally binding contract with a seller that i agree to buy this property for a hundred thousand dollars now remember we're gonna sell this contract to someone else and also i'm gonna give you some tips here on how you're not gonna get sued like oh you signed that you need it now you owe me a hundred thousand dollars it doesn't work like that you can get out of it with certain inspection periods and stuff so uh we're just gonna write this down so that we're gonna say this agreement is made on the we're gonna do the 22nd of april and guys i am and i'm very slow when like pre-filling out my contracts because these are legally binding documents so i'm very very careful when it comes to actually getting the stuff done so let's make this a little bigger here here we go between the sellers so let's just put the seller here sally sue now remember if sally sue is married especially in the state of florida i'm going to put something like sally and john su sally and john tzu if they're married i can do that and the buyers is going to be either if you don't have an llc or something you can just put zachary ginn or we can do zachary again llc if that is your llc and i would be the buyer in this situation now what i like to do is i actually like to highlight these if i'm doing if i'm pre-filling them out so it's a little bit easier for me and one two three main avenue and now if we're actually doing this in person we're just actually going to write this in if we're not going to pre-fill it but this stuff i usually will get pre-filled so we're going to do here is do port st lucie florida three four and in the legal description this the legal description will be found on the properties on the property appraiser website it will be like one two four plot land 15 like 15 lot 6 or something like that it just it's a legal description you get it from the local tax from the actual d to the property which you can look on the public record there so we'll put that blank but it's usually something like 76 lot three thomasville village it's something like that like it just it's very it's the legal description on the plot of land there so what we're gonna do here is this where we put our deposit now we average about a one thousand dollar deposit for our wholesaling real estate deals uh but really if you're a new wholesaler we're gonna make this a lot smaller at minimum you should do at least a hundred bucks so since we're gonna do a hundred thousand dollars we're just gonna do we're gonna do that and then we're gonna put the total price which is a hundred thousand dollars now next is all the legal mumbo jungle mumbo jumbo on there so let's go over it really quick the earnest money to be deposited with a licensed title company or attorney within 48 hours of acceptance and ratification of offer two here's the proration impound security deposit loan interest property taxes insurance and rent shall be prorated as the date of the closing all security deposits shall be transferred to a buyer closing all impound accounts for taxes insurance are included in the purchase price and shall be transferred to buyer at closing any shortage of these accounts shall be charged to seller at closing basically stating that the seller is going to pay their fair share of their taxes uh with a proaction on there next here is the closing date so when are we doing the closing date now a lot of contracts have it all weird and stuff i always like to do on or before that's my personal favorite so really some contracts are like i we agree to close this at on april 14th or may 1st now what if they want to do it earlier than that then it's kind of weird so what i do is on or before may 1st now that may that gives me a lot more leeway to close it earlier if i can now if i have to do it later i might have to do an addendum or something but really what i do here is may 1st 2021 and we're going to highlight that section so i know what i changed closing will be held at flip with rick title company i'm going to highlight that one now you could pre-do this one but the may 1st 2021 i wait till you're actually on the appointment or or you're actually negotiated on the virtual wholesaling appointment then damage the property seller shall maintain property as current condition if buyer defaults under the if buyer defaults under this contract all monies deposited shall be retained by seller as full liquidated damages if the seller defaults buyer may pursue all remedies allowed by law and seller to agree to response for all the costs incurred by buyer's result of the seller's default this helps us in a lot of ways now if i default on the contract which means after the actual inspection period and i keep going on it they have the right to my deposit now if i do if i have an inspection and i say i don't like it i'm not allowed to keep my hundred bucks and but this part it's a little bit of leeway i give to the seller but the better leeway we get as buyers here is if the seller refuses to close or they want a better price and we just can't do that we have the legal right to actually keep the property might have to do an affidavit i don't know how your state does it so be very careful in there and we can actually protect ourselves successors and assigns this term and conditions of the contract shall bind all successors heirs administrators trustees executors and assignees of the respected parties so let's say hopefully this never happens to you or any of your sellers but let's say we have a seller they're 42 years old and they unfortunately pass away in a car crash and it was an amazing price and then the sun comes through and says you know what you try to screw my dad and this property should sell the realtor for a hundred and five thousand dollars and they will refuse and they say we're not closing with you well they signed a contract and they agree that all the airs the property has to go with us so that protects us in that situation this is why i prefer to use my free wholesaling contract because it does protect on a lot of crazy stuff so it's very very safe number seven here is access seller agrees that buyers may advertise property and have access during reasonable hours to show property to others now this is an interesting one i see no contracts do this but i put that in there so i'm as protected as possible especially when i'm wholesaling these real estate deals not a lot of gurus do it i have a feeling after i release this video today that these gurus are going to start putting it in their free wholesaling contracts but remember this is what we do this gives me the moral right more or less to advertise the property i could technically do it without them but they agree that i'm allowed to do that so i can throw this thing on a for sale by owner on zillow or or maybe a facebook marketplace and i legally have a right to do that so just in case they come back and they use that as a reason why they want to get out of the contract now i'm always going to ask them for their permission but it's just another thing that helps me out here number eight the most important part so we can make our money as wholesalers is this contract is assignable by the buyer the seven words here help us sell the contract amazing number nine here's the inspection period so this is basically the period where we get our out clause more or less this is when we can actually get out of the contract if we feel like it within that certain date and after that we're basically locked in after the inspection period so i like my inspection periods 14 to 30 days so let's do 30 days on this one and we're gonna highlight that one and that gives me about 30 days if i want to get my hundred bucks back basically and find a buyer uh so remember guys always come in there with the intention to buy it and you should but if you have to get out during something crazy let's say a hurricane happens day 15 and you just got to get out of the contract you can get out of it from there additional terms and conditions you can put in there sometimes you might put something if there's a tenant in place and you gotta get the tenant out buyer agrees to close once tenant is vacated from the property and then the underside of red above the information under the undersigned have read the above information understands it and verify that's correct date seller they'll put that so sally sue and then john sue will put it on there and then buyers will be me and we'll put the date there now if it's an llc i'll i'll literally sign it zachary gin and on the bottom i'll say for zachary again llc that's just the way i do it that's the way i like it i put my middle initial in there and then that's it now once we get under contract we start selling it to our actual cash buyers next year's we actually want to sell this contract i mean unless we actually want to buy it ourselves so what are we going to do when we actually want to sell this contract we're actually going to assign this contract to the cash buyer for money that's what we want to do guys and the purchase and sale agreement is very important but if you get the assignment of contract wrong or the wrong guru gives you your assignment of contract the cash buyer might be able to screw you out of the deal and you have no legal ramifications to protect yourself or sued them to get your money back i've seen too many guys lose tens of thousands of dollars due to greedy cash buyers because they use their local gurus assignment of contract who does not do seven figures in profit every single year and i play no games when it comes to my cash buyers and i have the most protected contracts possible so this is the contract that you have to pay five to seven thousand dollars in a wholesaling mastermind or a wholesaling course to get this super protected stuff uh and i'm just giving it to you for free because screw these gurus right like i'm trying i'm trying to put them all out of business here so this is the free stuff that you guys get remember this is seven thousand dollars of value i'm given for free here so this is the assignment of contract we're basically selling this our original purchase and sale agreement here we're actually selling that to the cash buyers so really quickly this is very very simple now remember guys we are the assigner and the cash buyer is the assignee i'm going to say that one more time that we are the assigner we're giving this contract and the assignee is the person who's getting the contract in exchange for money a signer is us assignee is the cash buyer make sure we get that right the agreement is now it's not going to be me it's going to be my llc i'll do this so zachary again llc whatever llc you have an assigner which is and let's just say psl home builders incorporated it's the cash buyer here i don't even know if that's a real company uh the assigner and assignee mentioned together referred to us parties the assigners entered an agreement to purchase real estate with we're gonna put sally and john sue do that right then we'll put the legal description there so i'll just copy it from here terms and agreements a signer assigns all rights he acquired under the contract to assignee assigning accepts all terms of conditions to contract assignee has reviewed the contract which is attached here to is exhibit a assignee fully understands the terms and conditions in the contract and represents to a signer that is willing and able to close the underlying transaction number three is a signer will deliver to a signer a cashier's check money or wire transfer as a deposit in the amount of i like to do at least three grand so we'll do three grand in this situation as an initial deposit so if they try to screw us out of the deal we keep three grand and we find another cash buyer that's the way we want to do this number four here is the assigner will pay the assigner a total assignment fee of so whatever it is so let's say they agree to buy this for 120 000 and we put on a contract for 100 that means we get 20 000 and then the seller gets 100 000 so we'll put twenty thousand dollars it's about the margins that's a pretty healthy margin right there that's a uh pretty good payday for us that's what we love to do and at five year at closing the signer will receive twenty thousand dollars of the assignment fee now why do i put this on here that seems kind of confusing now not everyone does this but i do this sometimes find a cashbot i'll actually find another wholesaler who will sell this for 130 000 that's pretty good right that means i'll get my 20 and they get 10. so let's say the total assignment fee is 30 000. i'll probably add an extra line here that the assigner gets 20 000 and then i'll put av dude llc gets ten thousand dollars you just gotta put an extra line on there if you can but this just shows that i get that amount of the assignment fee if you're jving this thing makes it a lot easier that's why i put it in there and you do enough wholesaling this should be a complete assignment contract for you you will i just will make sure the cash buyer understands the title company understands and i understand so there's no discrepancy there's no wishy-washy like i didn't know about xyz i do a little worksheet inside the contract it makes it so much easier this is how i do it as a professional wholesaler doing this so the purchase price in the underlying transaction is a hundred thousand dollars right now now our assignment fee is twenty thousand dollars now their deposit is going to be three thousand dollars that they give to us so that means the cash buyer at closing is going to owe around 117 000 now they actually owe the 120 but they gave me three thousand dollars so they gave me a three thousand dollar deposit hello 117 000 and i'll get a check for twenty thousand dollars and then the seller get their hundred thousand dollars so it's all perfect now remember this deposit it'll be part of my assignment fee there which is awesome so that is how you actually do a little worksheet there the signing will close the underlying transaction on or before if i'm doing may 1st i'm going to put april 30th just so i'm protected just in case they don't just in case they don't close i have at least some leeway on there sometimes i'll put the 27th sometimes i'll put the 23rd 24th on there just so i have a week in between if a worst case scenario happens uh but that's what you can put on there and then the assignee fails to close by the date indicated assigning will forfeit their deposit that means they agree that we get our deposit if there's ever a legal battle on there it basically the judge will say read line eight did you agree did you sign yes i did give zach to three thousand dollars that's how that's how it basically will work because you had that line protect you number nine here if the assignee attempts to communicate to the sellers in any form it will immediately terminate this agreement and forfeit their deposit for liquidated damages so if the seller tr so if the cash buyer tries to go behind my back and steal this deal from me guess what contracts olm void i get my three grand and i bring it to another cash buyer because cash buyers can ruin a deal like that number 10 here is a signer must deliver clear title at closing agrees that my deal has to have clear title if it doesn't they'll get their deposit back just good business 11 here the assignee will not contact the seller identified in the contract assigning agrees to communicate solely with and through a signer again just making sure number 12 a at any time before closing renegotiate the underlying price in the contract with the original seller a signer is a a signer is entitled to an entire difference between the contract purchase price and the assignment the difference if any will be paid as an additional assignment fee at closing a signers negotiation of the purchase price will not affect the total due at closing due at closing by assignee so that basically states if i actually renegotiate for 80 my assignment turns into 40 and they don't get a better purchase price so let's say i agree for the 20 000 assignment and i negotiate 80. technically they would buy it for 100 and i still get my 20 grand if you did not put that in there so you want to be very careful if i renegotiated 80 then i get 40 000 so i get the money if i renegotiate on there 13 here the property sold as is basically stating basically stating the cash buyer understands that whatever happens to property it's their problem at it it's sold as is 14 here these this agreement is null and void of the deposit of 3 dollars is not received on or before april 23rd and we're just going to highlight that and boom there we are then the assigner i'll sign it the cash buyer assign you'll sign that we'll put the date time and print and what we're gonna do is have the cash buyer give our three thousand dollars give the three thousand dollars to us and then boom we actually sold this thing made 20 grand so that's it guys that is my purchase and sale agreement and assignment of contract this is how you fill the stuff out this is the stuff that gurus want to charge you so much money for and i just gave you thousands of dollars worth of contracts absolutely for free attorneys i paid them just get the stuff done it's amazing guys so i really appreciate it i've used these contracts to make millions of dollars in profit in real estate wholesaling this stuff's legit i really appreciate it guys if you have any questions at all comment them below and i love to answer it i answer every comment personally remember if you got any value of this please smash that like button and subscribe thank you guys so much and have a blessed day

Channel: Flip With Rick

Views: 72,767

Keywords: wholesaling, wholesaling real estate, flip with rick, real estate, wholesale real estate, wholesale real estate contract, where to find wholesale contracts real estate, wholesaling real estate contract assignments, wholesaling real estate contracts, how to get wholesale real estate contracts, what real estate contracts do i need to wholesale houses, real estate wholesale contracts, how to fill out a wholesale real estate contract, wholesaling properties contracts, free contracts, re

Id: Vk-asG4X0rs

Length: 22min 58sec (1378 seconds)

Published: Thu Apr 22 2021