36 Comments

1. 

   Peggy on at

   Wow, is that ever a simple contract!!! Thanks…

2. 

   Lloyd Rupp on at

   I have an error on page message!

   HELP!

3. 

   jp on at

   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

4. 

   norm on at

   The purchase agreement form will not download. When you openit goes back to thepage of instructions on how to download. The video works great.

5. 

   JP Moses on at

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

   Hope that helps,

   …jp

6. 

   Jeremy on at

   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?

7. 

   JP Moses on at

   @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?

8. 

   Jeremy on at

   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.

9. 

   real estate millionaire on at

   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!

10. 

    Grace Stroup on at

    JP,

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

    Thank you,

    Grace Stroup

11. 

    Taylor on at

    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

12. 

    JP Moses on at

    @Taylor – That’s awesome, Scott! Knock ’em dead, bro! 🙂

    …jp

13. 

    JP Moses on at

    @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

14. 

    Ray on at

    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

15. 

    Ray on at

    ok, so both work hand in hand….got it Thanks

16. 

    Ken on at

    Hey JP,

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

    Thanks,

    Ken

17. 

    Ken on at

    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

18. 

    Ken on at

    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

19. 

    Demetri on at

    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.

20. 

    sonnyu on at

    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!

21. 

    Denise Thomas on at

    I am a newbie who lives in Pennsylvania. I have read about options and I still feel unsure of what to do. What is the first thing that I should do? What happens when I find a buyer? How am I paid? Can you please give me some direction on this?

22. 

    STEPHUS on at

    HELLO JP I HAVE A QUESTION ABOUT THE DESCRIPTION WRITTEN AS FOLLOWS,ON THE AGREEMENT FOR SALE CONTRACT.WHAT DOES CD MEAN?

    Hey, Stephus, can you clarify your question please? I’m not understanding…

    Thanks,

    …jp

23. 

    Eric on at

    I understand why a seller would need consideration to sell an option, but in a P&S contract, why is there still consideration needed?
    .-= Eric´s last blog ..3 Secrets to Reading Housing data for the Real Estate Investor, Part 1: Understanding Seasonally-Adjusted Data =-.

    It just has to do with contract law. Legal consideration is required for a contract to be considered enforceable. Be it an option, purchase contract or whatever. That’s what they taught me in my contract law class back in the day.

    …jp

    PS…Interestingly “love and affection” can be considered legal consideration in a contract. Learned that one too. Not sure how you’d prove it was REAL…but it’s in the law. Yeah, weird!

24. 

    Sharon on at

    JP, I have a very motivated out-of-state seller that has forwarded a 2006 appraisal valued at $1.6 and now offering for $1.1. #1 how do I determine today’s value? #2 Which contract would you suggest I use to flip?

    Hi, Sharon. First of all, the 2006 appraisal is worth toilet paper. We all know today’s market is a far cry from then. The only thing that matters is current comparables. Ideally within the last 3 months in most cases these days. And the more “stupid simple” they are, the better for you. I suggest trying for at least 3 “stupid simple” comps (borrowing that term from my buddy Bob 🙂 )

    I know it may be hard to find comps for higher priced homes. And that’s the problem with them in general. And that’s part of what makes them riskier in today’s market.

    I’d suggest doing your best possible due diligence based on as many comps as you can find. Then I’d tie it up with a “flexible option” if possible, rather than a contract. Explain that you won’t close unless you find a buyer to flip it to, and it appraises for at least $X.

    You can get an option agreement from my packet of 53 forms, or just use one from your local board of Realtors.

    My best,

    …jp

25. 

    Bill on at

    JP…Thankyou so much for the forms! you have hammered out a giant stumbling block that holds many people back from making wholesale deals happen!-namely: contractual confusion and fear of litigation and accountability…..your service is wonderful and I will refer this site to my colleagues

    Be well
    Bill Berry

26. 

    Chantelle on at

    Thanks for the free contract! Things like this are treated as gold with other gurus and they rarely give out their gold. Quick question: Do you have the Preston Ely call available to your readers? You have to be a member of Preston’s club to hear any archives. Just wondering.

    Thanks again!

27. 

    Darlene on at

    Thank you. Your site has been very helpful!

28. 

    ShortSaleSDude on at

    JP, I owe you guys big time for these vids! Ok, consideration of $10, 20, 50, or $100 makes the contract enforceable, right? Now what is the purpose of the earnest money if I just put consideration down to enforce the contract? What is earnest money? How much earnest money is needed?

29. 

    jp moses on at

    It’s a little hard to explain…but “legal consideration” isn’t necessarily the same thing as earnest money. I honestly don’t understand it fully myself…I did at one point, back in the day when I took my Realtor licensure classes. But I know Earnest Money can count as legal consideration…but other things can also…even love and affection in TN (as I mentioned in the video – crazy, I know).

    Typically when a real estate contract mentions “for $10 and other good consideration” you don’t actually give them the $10. No one I’ve ever known has done that.

    Not a lot of clarity there…but then again, I’m still lacking a little coffee this morning. 🙂

    …jp

30. 

    Valerie Robinson on at

    Jp..Thanks you for the REI forms and the walk through steps. Valerie Robinson

31. 

    CoolestVampireArtGallery on at

    HI JP,

    I see that there are two fields for seller signature, does the seller have to sign twice or is the other sig field for us when we flip the house?

    Also, when does the purchase contract come in? Is it after you have a confirmed buyer? I just got a little confused on this since we tie up the property with an option, right?

    Thanks,

    Mon.
    ***sorry, can’t edit handle on my disquss account***

32. 

    BooDog on at

    He said ‘see deed’.  Not cd.

33. 

    kim on at

    This is the  best site on RE that I found…you are awesome! Giving out free forms for the newbies and anyone who needs it. THANKS!! Gotta tell you, I’ve been searching for forms for a while and unable to find one until I found your site. 

34. 

    Terry Bradley on at

    Your contract will not download on my phone nor on my laptop what you be able to send one to me if possible purchase contract and also assignment contract

35. 

    David Eldred on at

    Terry, try it again. It should be working now. Thanks for stopping by.

36. 

    Derek on at

    I added just a couple things.
    Thank you for this template!!!

    I addedthe following
    – All general/state/county/school and municipal real estate taxes, specials, HOA dues or fees, or interest on existing taxes or loans owed will be paid by seller before closing.”

    – Buyer has 10 business days after the signing of this contract to conduct a home inspection. If the inspection reveals unacceptable conditions the buyer may do one of the following three things. 1. Accept the property “As-Is” 2. Cancel this contract by notifying the seller in writing within the Inspection Period. Or 3. Offer to renegotiate with the seller in writing and identifying the Unacceptable Conditions.

    -This is not contingent on buyer obtaining financing.

    – Seller agrees to maintain all utilities active until the date of possession