Wholesaling risk involved (Texas)

[onedeal]

STOP NOW!  You're not ready for this.

There have been tons of books, courses, seminars, etc., etc., on the field of wholesaling.  Please do yourself a favor and at least visit your local library to read up on the idea before 'jumping in' because you've visited a website a few times.  Wholesaling is a business.  Treat it as such.  Learn at least the basics before trying to start it.

Is there risk?  YES, there is risk.  It's real estate investing.  By investing, there is always risk.  If you want to do something with little to no risk of losing money, getting sued, etc. then REI isn't it.

By your contracts 'being right' I'll assume you mean that your weasel clauses are good.  And yes, those clauses can get you out of deals if you have to do so, but they WON'T protect you from lawsuits.  You may win your case if your sued and your contracts upheld, but you could still be sued (and have the costs/rep of being so).  The best insurance against lawsuits is to be an honest and ethical investor (with alot of insurance).  "Weaseling" out of alot of contracts will not get you that rep at all.  Be prepared to close on your deals if you make them.

Raj

YES. I aggree with you 1000%.  Is that the general concensise that if we can't wholesale then close on it ourselfs? I was already sued on another type deal and was settled out of court, my family can't take another one.

[onedeal]

Thanks for the response fadiz. TREC huh? I was thinking to use the contracts that come with KRIS KIRSCHNER wholesaling course.

I've looked through the TREC site and I'm not sure which contracts I need. Their list has about 30 different contracts. Can you tell me the names of the contracts? All of the posts I see also just say to download from TREC (without names).

Thanks,
Bilal

Do you have a link to this TRAC site? can't seem to find it.

[ballgum]

Thanks for the response fadiz. TREC huh? I was thinking to use the contracts that come with KRIS KIRSCHNER wholesaling course.

I've looked through the TREC site and I'm not sure which contracts I need. Their list has about 30 different contracts. Can you tell me the names of the contracts? All of the posts I see also just say to download from TREC (without names).

Thanks,
Bilal

Do you have a link to this TRAC site? can't seem to find it.

Here's the link. Like I said though, I'm not sure which contracts are for wholesaling...

http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp

[onedeal]

is that for TX only? Wholesaling all you need is P&S and an assigment.

[rgchamb]

I'm in Texas & this is what I do:

1.  I use the TREC One-Four Family Residential Contract - Resale
2.  To protect myself I either use:
a.  The option portion of the contract (I use this the most) or
b.  An addendum that I wrote that outlines an inspection period
3.  I include in my addendum that the buyer is entitled access to the property.

The contract gets executed, goes to the Title Company, I contact my buyer's list & show the property to those interested, get it closed, collect the check!

[fadi]

Use 20-7 One to Four Family Residential Contract (Resale). I would recommend you attend R2S's Forms class, it is $99 and they usually teach it in Houston or San Antonio. Two days on how to use TREC contracts for investing. www.r2srealestate.com

[fadi]

is that for TX only? Wholesaling all you need is P&S and an assigment.

This one is specific for Texas. It is written by the Texas Real Estate Commission (TREC) to be used by the agents. I would check and see which contract used by your state's agents.

[Brandon Lambert]

I use the TREC.  In paragraph 11, I write "Subject to bids and inspections."  No addenda.  No option period.  Just that.  I have found that the less add-ons the less suspicious the transactions.

[rgchamb]

I use the TREC.  In paragraph 11, I write "Subject to bids and inspections."  No addenda.  No option period.  Just that.  I have found that the less add-ons the less suspicious the transactions.

I could probably fit my Addendum in paragraph 11, but it's just neater for me if it's typed out.

[Excel]

Hi, I'm Trish

I am also starting wholesaling with someone..and am about where you are in the process of starting it.  Let me know any tid bits of information you find out and vice versa.  I would be glad to offer you anything I find out. 

I was told to use Foremost Insurance for real estate insurance..the number is 1-800-237-2060.  What are u taking with you when you go and meet with your insurance company?

[fadi]

Why are you looking into insurance if you are wholesaling?

I'm in Texas guys, and I would be happy to help you guys out if you have questions or need specific help. Just ping me, email me, fax me, whatever.