Purchase Price Contract Language - Newbie Question
As I understand it, once I find a good wholesaling deal, the first thing I need to do (after negotiating a purchase price with the seller) is to control the property by putting it under contract. Now, because I will be flipping this property, I will not be obtaining my own financing. Further, I do not know how much of the purchase price (if any), the end-buyer will be financing. How do I fill out this section of the contract? Do I write the contract as a cash deal or do I make up some financing numbers?
Also - is it better to control the property with an option agreement or a purchase agreement?
Many thanks to everyone...
Scotty
KC, MO
P.S. I will be writing my own "standard" contract and will have it reviewed by a local atty.
Scott,
Any luck getting an answer to this? This group seems to be very tight-lipped about the actual nuts and bolts (IE: The contracts) of wholesaling.
JohnCl
I would suggest you 'jot' it down as a cash deal. As an investor told me, "Cash is King!"
are going to be using a re agent to draw up your contract? the reason i ask with are agent you will most likely be making an offer and terms at the same time.......kenmax
When you have a property that you do not intend to actually close on you need to make sure you have plenty of contengencies in the purchase agreement so that you can get out if you can't find a buyer.
Some people put a very generic financing contengency such as "subject to buyer obtaining acceptable financing".
Some get out using the inspection clause
Others get out by making the offer contengent upon a "partner's approval"
However you do it, you need an out. Don't put down that you are offering cash, put down you'll be getting financed. You can always decide to pay cash later.
Hope this answers your questions. GOOD LUCK