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Real Estate Purchase Contract…Undressed (Free Download, Plus Video)

By JP Moses | Category: Featured, Free Real Estate Investing Forms

You remember the free option agreement form and video I gave out recently? Here’s another one for you...

Today it’s my “Quick N’ Dirty” buying contract — specifically the one I use for wholesale/quick flip deals…and even more specifically when going “belly to belly” with an individual seller (i.e. non-listed property)

I think you’ll be glad to see it’s about as simple, plain-English and non-threatening as you can get.

Granted, it may not be the most comprehensive real estate contract around — but for that you can go to your local board of Realtors. And from time to time you probably will.

But I like this one a lot because it’s notably lacking in bloat, but I find it gets the job done real nice for me.

1) Start by downloading a copy of the contract for yourself…

To do this, right-click here and select “Save Target As…” from your Windows menu.

3 quick things:

1) Here’s a quick screen-capture video I made demonstrating how to download the doc in Internet Explorer on a Windows computer.

2) If you’re a Mac user, then instead do whatever it is you Mac folks do to download stuff.

3) The form is in MS Word (.doc) format. If you don’t already have MS Word on your computer, then Open Office should do the trick for you (and it’s open-source freeware).

Oh, and I’m giving you a personal license to use this document in your own real estate business. But please don’t sell it or give it away yourself. If you know of someone else who would benefit from this, please send them a link to this page so they can come here and get it themselves.

Why? Because I’d like to give them the chance to become an REI Tips subscriber…just like you.

2) Then watch the “how to” videos…

Here’s my short, 2-part video walking through this form, how to fill it out and how I use it specifically.

I hope you find it useful, and I’d really appreciate hearing any comments you may have if you could please share them below.

Thanks.

Real Estate Purchase Agreement, Undressed - Part 1

Real Estate Purchase Agreement, Undressed - Part 2

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20 Comment(s)
By Peggy (4 comments) | Reply

Wow, is that ever a simple contract!!! Thanks…
By Lloyd Rupp (1 comments) | Reply

I have an error on page message!

HELP!
By jp (4 comments) | Reply

Lloyd, it seems to be working great for me. Have you tried rebooting your browser? Maybe it was just a momentary hiccup…try again???

…jp
By norm (1 comments) | Reply

The purchase agreement form will not download. When you openit goes back to thepage of instructions on how to download. The video works great.
By JP Moses (60 comments) | Reply

@norm - Norm, here I made a quick video demonstrating how to download it: http://screencast.com/t/2cecJXQZQk

Hope that helps,

…jp
By Jeremy (5 comments) | Reply

If you find yourself not able to assign this contract or close on it yourself. What is typically the way you go about “exiting” this contract?
By JP Moses (60 comments) | Reply

@Jeremy - Jeremy, it’s got an “out” clause (the final inspection) but I really try not to use “weasel clauses”. They have that name for a reason.

If I’m not sure if I can flip it, I’ll lock it up with an Option Agreement instead. Or I’ll let them know it’s contingent upon my partner and/or contractor doing a full inspection withing 7 days, then give myself that 7 days to lock in a buyer. If I don’t, then I tell them my partner didn’t approve of the deal…that’s a way to give yourself some wiggle room without stringing them along unfairly.

Make sense?
By Jeremy (5 comments) | Reply

Yes it does make more sense. Thank You!

It seems as when your starting out, your more likely to be unsure if you can flip the contract. Therefore you should use a option contract. The more deals you do, the more comfortable you’ll be in knowing how quickly/ likely you can flip a contact. Therefore you can start to use the Purchase to Sale contract more often.
By real estate millionaire (1 comments) | Reply

You have really simplified the contract process down to easier to read layman’s terms. Very helpful to those who are looking to to not have a “strings-attached” approach to selling their house or real estate. Good work here!
By Grace Stroup (2 comments) | Reply

JP,

I have a dumb Qtn. is the Contract/Purchase Agreement. is that an Offer Contract also?

Thank you,

Grace Stroup
By Taylor (4 comments) | Reply

Thanks JP!

Your content never fails to deliver! We had another closing last week, netted $15k. A direct result of the Preston Ely call that you did in June 07. I can’t thank you enough.

Have a healthy & happy holiday season.

Keep ‘em coming!
Scott Taylor
Arroyo Grande, CA
By JP Moses (60 comments) | Reply

@Taylor - That’s awesome, Scott! Knock ‘em dead, bro!
…jp
By JP Moses (60 comments) | Reply

@Grace Stroup - Grace, if I understand what you’re asking, then yes. The Purchase & Sale Agreement I put out here is the contract I use to make offers on when I’m buying. (i.e. my “offer contract”).

…jp
By Ray (3 comments) | Reply

Hi,

Whats the difference between the RE Purchase Contract and the RE Assignment Contract. They both seem to do the same thing.

From JP: Ray, there’s a big difference actually.

The RE Purchase Contract is the contract you use to buy the house with.

The RE Assignment is the document you’d use to assign your purchase contract to another party - to have them step into your shoes in the deal.

You may want to watch both videos back to back. That would probably clear it up for you.

My best,

…jp
By Ray (3 comments) | Reply

ok, so both work hand in hand….got it Thanks
By Ken (8 comments) | Reply

Hey JP,

This may be asking too much, but could you provide a copy of a real estate purchase offer you use?

Thanks,

Ken
By Ken (8 comments) | Reply

Hey JP,

I am confused about the offer process. Most wholesalers seem to gloss over this area.

The reason I asked for a copy of your “Purchase Offer” in my earlier question is some Guru’s advise sending an Offer to sellers first. If they accept then you write up a contract.

If you don’t use a Purchase Offer how do you make your offers? Do you verbally haggle over the contract price with the seller at their house or on the phone?

I know you are the one to ask. Your knowledge is greatly appreciated!

Thanks,

Ken

Hey, Ken - thanks for the comment/question.

Admittedly I didn’t understand exactly what you were asking for at first. To me a “purchase offer” is just another way of saying “purchase contract” or “offer”, etc.

Sounds like you’re talking about a “Letter of Intent” or “Offer Letter”. And yes, I do have one - though admittedly I haven’t used it much. Tend to prefer just using a contract from the start. But letters of intent are much more prevalent in the commercial arena.

You asked, “If you don’t use a Purchase Offer how do you make your offers? Do you verbally haggle over the contract price with the seller at their house or on the phone?”

I usually begin the negotiation process over the phone, but rarely finish it there. Most of the time — with individual sellers — I’ll deal with them in person, negotiate terms, then write it up on a contract between us. When dealing with REOs, you just have to submit your offer (usually on a state approved or bank approved contract) and fish for a counter.

Don’t let yourself be intimidated by the offer on a contract. It’s not nearly as big a deal as it FEELS like it is at first.

That help any?

…jp
By Ken (8 comments) | Reply

Yes. Thank you JP. I have not made an offer yet and I am trying to get my ducks in a row before I take the first step. As always I appreciate your advice!

Ken
By Demetri (7 comments) | Reply

Can this contract be used if the Seller has a Realtor representing them? I would assume the realtor is going to comeback with something different.
By sonnyu (1 comments) | Reply

jp, thanks for the sample contract. i guess i missed the deadline on the video on how to fill it out.
you always have the most informative real estate videos on the net. i’ve learned more from your short videos than i’ve learned from hours of videos by some of the big gurus.
thanks!