104 Comments

1. 

   Peggy on at

   Love this idea. A gal can’t have too many forms! Keep ’em coming…

2. 

   Mark on at

   This is great JP! Please do more of these videos/forms. I’m a newbie and this information is very helpful. Thank you!

3. 

   Daniel on at

   That’s great thanks for doing that in more would be good as well. Not sure why but my doc scrambles with letters and dots and things all over the place. If you have a gmail account you can go to free google docs and export it as a PDF and it will be more universal and also professional and printable etc. It’s really easy at google documents. By Thanks for the option contract explaination. I need some learning for Australia but i guess it’s a similar concept America!

4. 

   Scott Taylor on at

   Nice one JP. I’ve been using 30 and 45 day options to flip properties for the last 6 months. It works like a charm and is much easier than doing a double close. In fact, we’ll have to go over it sometime. It’s a great ‘low risk’ strategy…

   Cheers,
   taylor

5. 

   Ryan on at

   I loved this Idea JP! you Rock! the Tutorial is awesome!

6. 

   Amaru on at

   What do you know about FLex Options?

7. 

   Terry on at

   Thanks JP! Would you be willing to roleplay and show us how you speak to sellers and answer their objections?

8. 

   jim on at

   Just what I was looking for. Google is your friend JP, I may just stick around this site for a while.

9. 

   JP Moses on at

   @jim – Wonderful, Jim! Glad you stumbled upon me! And even more glad I could hook you up with an option agreement! 🙂

   …jp

10. 

    gary on at

    Very Good , this IS the basics of wholesaling a house and as a beginner ( about to close my 1st deal ! yippie ) this is exactly how i did it and , i really hope you all out there use this info to get into or grow your business . and I can tell you this type of info isn’t out there for free like this is everywhere you go , my hat is off to the folks at REI tips for being straight up and letting you peek into what they do .,,, good job guys.

11. 

    Curtis on at

    I appreciate you sharing this valuable information with all of us. Especially the newer investors. I found the contract easy to understand, but the video made it even easier. Please keep up the good work and thank you .

12. 

    Tim Cronin on at

    Just wanted to know how to get option consideration to optioner if doing these deals cross country I.E. virtually. How do I get it back if deal doesn’t go thru? Will the money be applied as earnest money when switching from option to purch n sales agreement, or do I assign the option itself?Please let me know. Thanx.

13. 

    JP Moses on at

    @Tim Cronin –
    “Just wanted to know how to get option consideration to optioner if doing these deals cross country I.E. virtually…”

    You could always wire it or FedEx it. Heck you could even Paypal it! 🙂

    “…How do I get it back if deal doesn’t go thru?”

    When you put down option consideration, you’re typically not planning on getting it back. It’s a FEE you’re paying in return for being granted your exclusive option on the property for a designated time frame. But if you have some short term stipulations (like contractor inspection, etc.) I suppose you could make your option consideration refundable if those contingencies aren’t met. You’d either have to trust the seller to return it, or have your consideration held in escrow by a closing attorney and only released upon terms of the agreement.

    “Will the money be applied as earnest money when switching from option to purch n sales agreement, or do I assign the option itself? Please let me know. Thanx.”

    Option consideration is separate from ernest money in every case I’ve seen. I can’t speak to all situations, but I would say it’s normal for them to be separate and distinct from each other. And yes, you can assign the option itself.

    Great questions! 🙂

14. 

    Dean on at

    J P,
    I’v just down loaded the forms and its always good to have different ones to use.The videos are a great help,really great,its like looking over you shoulder or being right there with ya.How can I save them to my hard drive and attach them to the forms?
    Thanks Again,
    Dean

15. 

    JP Moses on at

    @Dean – Dean, I’m so glad you like them. Thanks for the feedback.

    You can download and save YouTube videos using a service at http://www.keepvid.com. You’ll also need to download a free .FLV viewer to be able to watch them. And don’t forget to add “.flv” to the end of the file extension after you download it.

    Technically you’re not supposed to be able to download YouTube videos. I just shared one of my little secrets with you. 🙂

    …jp

16. 

    Swarup on at

    Wow. Thanks very much jp. It’s awesome to see someone explain this stuff. I needed this! …and more of this kind of information.

17. 

    Dub on at

    Great Video Tutorial JP! Very Informative and Easy To Grasp. This is the Tpye of Information I Love. Please Continue Making These Type Of Video Tutorials… With Relevant and Useful Information. Outstanding Job!

18. 

    Rachel on at

    I was listening to your first video on viddler. By the way,
    > it was great so is your entire website.
    >
    > My question about the option contract since you mentioned about
    > assigning. Wouldn’t I need another contract to assign? I live in the
    > state of Virginia. Would this work in VA?

19. 

    JP Moses on at

    @Rachel – A keen observation, Rachel.

    Yes, you’d need an assignment agreement in order to assign your option contract.

    And you can get one free right here: https://reitips.com/real-estate-assignment-contract

    🙂

    …jp

20. 

    Paul on at

    Hi thanks for the tutorials it is like having the ob1 of contracts in your ear

21. 

    Karl on at

    JP, dissecting the purchase and sales agreement, the option contract, and the assignment contract were excellent. You are an excellent teacher, very clear and concise. Thank you.

    Question: could the option agreement be revised slightly to tie down a contract on other personal properties such as boats, planes, or jewelry?

    From JP: Great question. The answer is…I have no earthly idea. 😉 Sorry, but I’m blank on that one.

    Thanks for commenting though! 😀

    …jp

22. 

    Karl on at

    So, JP, if you were beginning to learn wholesaling, would the combination of the option contract and the assignment contract be all needed to wholesale a property? Thanks.

    You could definitely do it that way, Karl! 🙂

    …jp

23. 

    Karl on at

    Hey JP, one more related question. This is a tax related question: Could you deduct $100 from a self directed Roth IRA to put an option on a home and then assign the property and take the profits and keep it in your ROTH IRA? (turn $100 into $10,000 in a Roth and the $10,000 is now tax free upon withdrawal at 59 1/2 yrs of age?)

    From JP: Karl, that’s a great question. And I have absolutely no idea. 🙂 I’ve never dealt with the investing from your Roth IRA stuff. Anyone else out there that has wanna chime in?

24. 

    Gionki on at

    Jp- As a Wholesaler,
    1. How where are your top 3 ways you are marketing to investors your wholesaling service?
    2. How are you keep your investor list clean?
    3. Ever wholesaled a house from the MLS?

    Great questions, Gionki. My quick answers are:

    1) I got to a point where almost all my REI business happens through my network of friends and referrals and such. Most eventually get there. But at first I got a lot of leverage out of my REIA group meetings and networking there, and also I placed a couple of “dummy” ads in the paper to generate some calls.

    2) I don’t have to clean it. I just keep up with who’s in a “buying mode” and what they’re interested in. Then when I come across a deal, I know pretty quick whether or not I have a potential buyer. I don’t deal with hundreds and hundreds of buyers. I prefer the more personal approach with a handful of players.

    3) If you mean, listed a house in the MLS that I was wholesaling, then no. If you mean, contracted a house in the MLS, then wholesaled it, then yes. 🙂

    Hope that helps!

    …jp

25. 

    john on at

    Have would you word a secondary offer cancellation and let the seller still market the property ?

    Thanks
    

    The exact wording isn’t magical, but it would be something like this:

    “While this option remains exclusive while it is in effect, Optionor shall retain the right to continue to market the property for sale. If another potential buyer presents a purchase offer of preferable price and/or terms to the Optionor, then Optionor shall present Optionee with and written notice of said offer, and Optionee shall within 60 days either accelerate performance on the existing Option agreement, or to cancel said agreement altogether. This is a “right of first refusal” on behalf of the Optionee.”

    I just came up with that off the top of my head, but I think it would work OK. I’d still suggest you run it by a local RE attorney though, just to be sure.

    Hope that helps!

    …jp

26. 

    Branson Real Estate on at

    Seems like these are pretty solid contracts. I’m knee-deep in the real estate investing game myself. So, it’s nice to see like-minded people sharing useful resources.
    Thanks!

27. 

    Arlen on at

    This is excellent.

28. 

    Arlen on at

    Watched your Option Agreement video. Well done. Just one question. Do you assign the option agreement when wholesaling, or when you have a buyer do you go ahead with the Sales Agreement and assign that?

    Hi, Arlen. Great question.

    If I’m using an option agreement in a transaction, there’s seldom a reason not to just assign the option contract to the new buyer. Unless for some reason there are some terms in there you’d not be comfortable with someone (your buyer) assuming.

    Make sense?

    …jp

29. 

    Billy on at

    I have been trying to get started in wholesaling/assigning/flipping properties (whatever you want to call it). It sounds like a great way to get into investing in real estate w/o any cash/credit or job. But a Realtor I’ve spoken to stated that you still must have to come with cash in order to get a house under contract. The lender (bank or mortgage company, etc) wants to see a POF (Proof of Funds) letter. You just can’t tie up a property and put it under contract and assign it over to someone else unless you come with cash at the table. You must obtain funding in order to put a property under contract. Please advise. How do I get started with no job and no money? Thank You

    Hi Billy, thanks for posting.

    Your Realtor is what we call an “inside the box” thinker. He’s been trained by his broker and a myriad of real estate classes to see things only one way.

    For example, whenever I’ve purchased a house from an individual (non-listed) property, as a result of my own direct marketing, I’ve yet to put any earnest money in their hands. Instead we use the contract itself as legal consideration, which is perfectly legal in TN (although most Realtors would tell you otherwise b/c of simple ignorance and assumptions).

    It’s true most any Realtor worth his salt will ask for earnest money and a POF, but most is not all. For example, lately there’s been a trend on FDIC listed properties actually requesting verbal offers b/c they’re so desperate to move the dang things.

    I’ve yet to find an REO listing that didn’t require those two items, however. So in the REO arena, you’ll just have to find a way to contend with it. You can still “wholesale” but you’ll just have to do a simultaneous closing or come up with transactional funding and do a double closing (which isn’t hard to do these days).

    Hope that helps. I can’t write a whole book about it, but know that the limitations your Realtor sees can be overcome with creativity and an open mind. Start networking with the Realtors other investors in your area commonly partner with and maybe they’ll see a little different perspective.

    My best,

    …jp

30. 

    Diane Boerstler on at

    Thank you so, so, so much for the free videos and contracts that you have provided on this website…they are SUPER helpful to a lay person like myself trying to get started and sort everything out…may all good things come to you now!

31. 

    Diane Boerstler on at

    Thank you so so so much for explaining this process and including free forms…your willingness to give knowledge where others are taking without giving is truly amazing…

32. 

    JD on at

    Great video, and info. Q, is there a way to use an Option on an REO? Thanks.

    Hi, JD. I’ve never known of a way to use an option on an REO listing. They don’t want to get strung along. Only a buyer seems to fit in their box.

    …jp

33. 

    Arlen on at

    JP,

    Lookin’ for more info. When you have an option on a property, and want to exercise that option, do you do that by then executing a Sales Agreement?

34. 

    Bri