The Elusive Contract

[rkmin]

I'm learning to wholesale in California.

1)  How do I acquire a Purchase contract & Equity Purchase Contract for preforeclosure properties that are legally sound?

2)  How do I fill them out properly?

3)  What paperwork do I use to assign them?

[cherdwelth]

Hi Rkmin - Are you still doing research? I remember we were both asking the same questions about a number of subjects. Of course, you still look a little young to be into REI - so you have lots of time for education. (J/K ... cute baby)

As far as a contract goes - use a simple one that has some clause to release yourself should you find the property not to your liking. If you are assigning your properties, make sure you have "and assigns" or "and nominees" after your name as buyer.

Usually there are only a few lines to fill out that you should have the information for.

There is a form called Assignment of Contract which is self-explanatory.

I made up my own contract and that is perfectly legal in my state - but I also added that it would be construed under my state's laws if there was a problem.

[rkmin]

Hi Cherd,

Thanks for the compliment on my son.  He just turned 10 months now but in that picture, he was about 6 months.

How did you make your own contract?

I have a sample contract from a seminar that I attended but I keep hearing from folks that seminar contracts are not very good.  So, I purchased a California Association of Realtors contract but the dang this is longer than a mile and since I'm not a Realtor, I'm sure I don't need all the excess verbage that it includes.  I just want a simpler contract that contains all the necessary verbage that I would need and is easy to understand and explain to potential sellers.  

Also, I'm having trouble finding an answer to how in the world do I learn how to fill out contracts properly without having to hire an agent?

Do I have to have some kind of contract first and then let an attorney review it for compliance OR do I just have an attorney draft a new contract?

[cherdwelth]

I wouldn't use the RE agents contract - our's here is 12 pages long and protects the agent pretty well LOL. And trying to explain the whole thing to someone isn't easy. It might just scare them away.

I have written contracts before - I'm no lawyer though - but if you put in it what you need and clauses you want, you should be okay. PM me and I'll send you my sample. Please don't think it is the best in the world but it might give you an idea of how to compose your own. It's very easy to fill out. There are spaces and you put in the correct info.