Master Real Estate Contracts in 30 Mins! 🏠

How to fill out a real estate purchase and sale agreement. That's exactly what we're going to be going over today, and I'm super pumped to give you this lesson, guys, because I've gone really in-depth on exactly how I can teach you guys how to fill this thing out and even what it is. And not only that, you'll never have to watch another video ever again, I promise you, on how or what a real estate purchase agreement and sale is, especially if you're a wholesaler. Okay, so guys, stay until the end of this video as well because I'm actually going to give you my own, my very own real estate purchase contract that I've done millions of dollars with. So I'm hooking you up. All right. So I need to get to get this thing ready. All right, let's go for it, everybody. If you're watching this and you're like, who the heck is this guy? Who's this guy Nathan Payne? And why the heck should I listen to him? Guys, my name is Nathan Payne, also known as Professor Payne. I love teaching and I've done over $2 million in assignment fees and wholesale fees. And here's some of the deals that I've done, just if you don't believe me. All right. And also I got my degree at BYU-Idaho. Now I didn't get my degree in teaching, but I did get my degree. So I have some authority. I'm not technically a professor, but I believe I have the skills to be a professor. So we're going to be diving into Why I like to teach. If you guys are watching this and you're like, you know, why is this guy teaching all this stuff? Guys, teaching is my passion. I grew up and I wanted to be a teacher when I grew up, but you know, it didn't meet my financial goals. Unfortunately, in the United States, teachers don't make that much money. And I moved to Canada recently, and in Canada, teachers can make up to like 6 figures. And you know, obviously, they make a lot over here. So I But anyway, I wasn't born in Canada. I just live here now. And that's why I like to teach. Now, because I do real estate and I've done it for several years and I know what works and what doesn't work, it's my passion. And I'm glad that I can combine the two and teach you guys how to do it. So, and these are just a few people, as you guys can see on the screen, that I've worked with over the last couple of years to help them achieve the goals that I've, you know, I've been able to help them. Today we're going to be going directly into answering the question that I get all the time. What the heck is a real estate purchase contract and how do you use it and how do I navigate the whole thing? That's what we're going to be going over. Now, if you guys are wondering, why does today's lesson even matter? Why do I even have to care about this? This one document, if you do not understand how to use this one document, you're not going to be able to do a lot of deals if you don't know what a real estate purchase contract is, right? So the bonus also is if you stay until the very end of this presentation, guys, I'm going to give you my very own document that I've had an attorney draft up. I've done hundreds of deals and made millions of dollars in transactions off of using this very agreement that I'm just going to hook you guys up with. All right. So again, if you're like, you know, is it worth staying to the end? I think it is. Well, that's why I made it, right? But I'm going to hook you guys up with everything that I have. All right. So what is a purchase and sale agreement? So let me get my whiteboard ready because I'm actually going to start drawing a little bit. That's why I have it. So what the heck is a purchase and sale agreement? Most of you all probably already know what the definition is, but I'm here to teach you guys. Okay. It's a legally binding agreement. That's a document that's outlining the terms of a real estate transaction between a buyer and a seller. It's pretty dang simple. Now, a lot of people think you need like a specific contract. Really, you could even do a deal on a napkin as long as you make an agreement agreement and you both sign. But the cool thing about having a contract like I have, it outlines all the things that you need to know so you do deals the right way and you are protected. All right. Why is it important? Well, like I just said, guys, it protects both parties. It secures your deal and ensures clarity, and it's legally required to move forward with the transaction. Okay. Again, if you're wondering, why do I need a real estate purchase agreement? That's why. And that's what it is right here. Okay. Now let me tell you about a story. You guys are going to love this story. This is Carl. Carl is one of the clients I work with. Okay. Carl has never done a deal. He's brand new to the industry. And he had a seller that he was talking to that was facing foreclosure. Okay. It was actually on Monday. There was an auction date set for Monday and the seller didn't do anything to prepare to sell her home. She was just, I think— I don't know what she was thinking. I thought she— maybe she just thought everything was going to work out. No one's going to foreclose and take her home. But what Carl did is he said, hey, your auction date's coming up. We can stop the auction date. We can stop the foreclosure from happening. But I need you to sign an agreement for me to buy your house. Obviously, we're going to buy it at a price that makes sense so we can at least get you something so you don't walk away with $0. And the seller signed, right? He signed the agreement. And then it was over the weekend. And then Carl called the attorney, the plaintiff's attorney, the attorney that was doing— performing the foreclosure and getting everything— that was in charge of it. He called them and he said, hey, I have a contract, right? If you guys can see this, I have a contract to purchase this home. I need you to stop the auction date. I need you to stop the auction and the foreclosure from happening. Okay. Now, Carl, if Carl brand new, if he didn't know how to do this, the lady would have got her— lost her home. She had about 50 I'm going to write this down so you guys can see. She had about $57,000 left on her mortgage and she— her house is probably worth about $225K. That's a big spread, guys. That's a big spread that she was going to lose out on. And Carl saved the day. He stopped the foreclosure. The attorney called him back, said, okay, I looked at your agreement that you signed. You did it the right way. Congrats. I'm sure— I don't know if he said congrats, but Carl was able to stop that lady from losing her house. Now he's working with her to buy it. Okay, so that is the power of having, knowing how to use the purchase agreement that we're talking about right now. All right, so, uh, let's go to the next slide. That shout out to Carl. Carl, congratulations, man. I'm really proud of you. Okay, so in this video, I'm going to be going over the key sections of a contract because it's easy for me to tell you that it's like, oh, you need a contract, right? But maybe you don't know how to navigate it. Now I've had to use read the contract hundreds of times with sellers to go through with it so they would feel comfortable. I wanted to make sure that they felt good about the decision they're making, and I like to read through contracts with sellers— not the whole thing, just review it and pass by, pass over it. I like to do this so people feel, um, comfortable, right? Because I want to eliminate all the issues that they might feel like they're having, any of the roadblocks. I don't want to just send a contract to a seller and then just cross my fingers and hope they, they sign it or they feel good about it. Right. That's just not how I roll. Okay. So let's go over it, because if you've been having this question of like, well, I'd like to understand contracts more, I got your back. Okay. That's what this lesson's for. So when you sign an agreement, key sections on this, and I'm going to be going over it more in depth in the next slides, but you want buyer and seller information. Okay. You want to have the purchase price on there. Which is obvious, right? You want the buyer's information. You want to clearly state the agreed amount that you agreed upon. You want to have your contingencies to protect yourself. These are contingencies and there's going to be more of them. And you also, you need the signatures, obviously, if it's not signed, it's not a legit agreement. So that's, that's obvious. All right. So let's go into this portion of the contract. So you know what it is. So it's pretty simple. Most contracts will say, especially the one that you guys are going to be getting, as I give you this is this contract is made on— that's the date. So today, what is that? Today's 12/20. Merry Christmas, by the way, everybody. Merry Christmas. It's coming up. Okay. Love you guys. And I love Jesus. Okay. So this contract is made on the date by and between seller. So let's just call the seller Nate. Okay. And whose address is 123 Main Street. Right. And/or buyer. And this, by the way, this is and/or assigned. So this is a dead giveaway that this is a assignable contract because it says right here and/or assigns. So this would be what we'll call Professor Payne, right? He's the buyer. All right. And whose mailing address— and this would be the, um, the address of the LLC, right? Let's say Professor Payne LLC, and this would be your registered LLC, or you can just do it in your own name. Okay. So, and by the way, if you guys have any questions, I will answer questions at the end. So just stay tuned. I know there's millions of you just watching and just wanting to ask questions. Yo, just put it in there. You can even type it and I'll get to it after, or just wait to the end and I'll, I'll answer your questions. So purchase price. Okay. So later on in the agreement, you have to put the address of the property. Pretty simple. 123 Main Street. You got to put the purchase price.. And then any additional terms like, hey, I agree to buy this house. I'm also agreeing to move the seller, whatever terms you want in there, right? I'm giving the seller like a post-possession, letting them stay in the property. You outline, you know, the post-possession terms and purchase price of $123K, whatever you want. Well, let's put zeros. Okay. $123K. All right. Next part is contingencies. All right. So understanding these is pretty important. Prorations. That's for taxes. Defects, want to make sure you understand, like they're disclosing if there's any major defects. No judgments, no liens. When you're going to get possession, it outlines when you're going to have possession of the property. Inspection, this allows you, this says buyer has the rights to inspect the property. Contingencies, this contract is contingent on the buyer having the right to inspect the property. This contingency part is pretty important. I had an attorney draft up mine like this. This section specifically where it's very lenient. It's like very skewed over to the buyer where like you can basically bail if you don't just— if you don't like anything about the property. Okay. So this is a good clause that I have and I'm not trying to get squirrely on anybody, but I like to be protected. Right. And the risk of loss, that's like if anything changes in the property after you agree to purchase it, I believe. Okay. I hope going through this step by step is enabling you guys to understand this contract. I know a lot of people have asked me like, hey, I need some help understanding how to review this contract. And here it is, right? So acceptance, EMD, and more. I've seen a lot of these companies come out recently. Like, I'm not going to name any names, but they like will lend you earnest money, EMD. Guys, if you know how to wholesale right, you don't need to borrow earnest. You don't need earnest money from anyone. I've used the EMD from my buyer like every time, right? If you have a buyer, you're just going to use their EMD. You don't need to go borrow EMD from someone else. That's actually how I make my offers extremely strong when I'm going against other wholesalers is I say, hey, I can give you like $10K, $15K, $20K EMD down. And then I have my buyer, my buyer puts down the EMD. But anyway, I haven't put down EMD in a long time. Why? Because my end buyer does it. Acceptance, guys, this is another one we'll get to later on the video. I don't really put an acceptance date because I don't send contracts and just cross my fingers and hope that they'll sign it. I actually do it on the phone with them, or if they don't sign it within a day, I call them and say, "Hey, was there an issue?" I don't think a deadline is going to make them sign or not. I actually put N/A because they're either going to sign it on the phone with me or they're not. Okay, deposit, guys, you know, I put $100 for EMD. And a lot of time they're like, well, why are you just putting $100 down? I just say, hey, look, we're going to buy your house quick, fast, easy, and convenient, so we can put as much money as you want down. But really, it's either we're going to do it or we're not, right? Like putting $5K, $10K, like we have our inspection period, we're going to check everything out. I can put more if you would like, but that's just usually put because I'm gonna buy it, right? I'm either gonna buy it or I'm not. And they're usually cool with that. I— you can put more, it doesn't matter. But, you know, if you do $10 or a dollar, I think that's kind of weak. I've been doing $100 and no problem, right? No one cares. Um, and again, if you're borrowing EMD, like, I, I think the issue isn't necessarily like the EMD. I think the issue is your credibility. Maybe they don't feel like you're going to get it done, so they want a lot of EMD now. But for For me, just, I put less down. If they got something to say, then I'll say, I put more down. I'm just, that's what we usually do. We have a lot of properties we're buying. We just, you know, anyway, closing on or before. So that means if the seller's like, when are you going to close? Say on or before this date, right? So 3 months out, right? You could say, so today we're in December, so you could be like 3/20/25. Okay. So I'm going to close on or before this date at 5 o'clock. Okay, so don't worry, it's going to be on or before. It could be like 2 weeks from now if you want a quick close. We just put it out further just so we have time. We don't have to redo, you know, sign addendums to the contract and keep extending. And if they're like, oh, I don't want to do that. That's fine. Whatever you want. You know, other agreements. Buyer agrees to purchase the property as is. Here it is. That's the as-is part of the agreement that makes your purchase, your contract say, hey, I'm buying this. I'm not requiring you to do anything to it. Contract subject to an acceptable appraisal. I never do that. I don't know why that line's in there, but whatever, keep it in there. Buyer to pay all closing costs. People like that when we say, hey, we'll pay all closing costs. Usually when you purchase property cash or you wholesale it, the end buyer is willing to pay both sides, both closing costs. All right. So if you're like, Nate, what makes the contract assignable? Remember we talked about it previously, everybody, that like and/or assigns does it, but we actually have a part in our agreement that, uh, it says— it like spells it out really like there's nothing— if you read it, there's nothing to, uh, like miss. You're not going to miss it, right? It says buyer may assign or otherwise transfer any buyer's rights, titles, um, in and to this— well, sorry, sorry, title and interest in and to this purchase agreement to a third party without the seller's consent, or to novate this agreement with replacement agreement with a third party, blah, blah, blah. I'm not going to read the whole thing, but this allows us to do it. How do I say this? How do I explain this to someone that's got a problem with this? Say, look, I have a lot of LLCs. I have partners that I work with. Sometimes I buy it in my LLC. Sometimes we sign it to another LLC where they buy it. Either way, we're, we're going to buy the house for what we agreed upon. No problem. So there's no— quit tripping about a signing. It's normal. I have like 3 LLCs. Maybe even, I think I actually have 4 LLCs. It happens, right? Maybe I don't want to buy it within my LLC. It like, that's Ventures of Nathan Payne, whatever. I want to buy with Offer On Homes or any of the other ones. Okay. That's how I explain it. All right. In the event that the buyer defaults, the remedy is the earnest money. Okay. This is, this is really good. I got this from an attorney and I'm not an attorney, guys. So like anything you're using from this, like take it with a grain of salt. Like I'm not telling you that like this is a perfect agreement or anything like that, but, um, this is what I So this is what protects you from the seller backing out. It's if a seller signs an agreement and decides they don't want to sell or they want to sell to someone else, this allows you to record a memorandum of contract, enforce your rights and interest to the property. The memorandum is to protect the buyer's interest, enforce its rights to buy the property, right? So we're not in the game of forcing people out of their house, but if they're trying to backdoor and go somewhere else, We're definitely filing an affidavit memorandum and protecting our deal. I have another video on that, and if you're interested in that, just comment and I'll send you the link. Time is of the essence. Marketing. We're telling them, "Hey, we have the rights to market." If someone's like, "Well, I don't like that you are going to market the property," you can say, "Oh, we just use that so we can pre-market the property and we can know the interest level of who's in this property once we fix it or when we, when we rehab it. If they have a problem with that, that's fine. A lot of this is just about just being transparent. If they have questions, just answering it the way it is. Hey, we're flippers, we're always looking to make a profit and looking for the best exit strategy. Buyer's disclosure. This one tells them that you are doing— you're working with them, your goal is to make money on this property. That's what you're saying. That protects you. Now, does anything really ever extremely protect you? Sorry, I got my alarm here. One second. Sorry about that, guys. Trying to turn that dang alarm off. Anyway, so this protects you in the sense that if you make money on a deal and they're like, "Oh, you made money off of me?" It's like, "Yeah, that's what was in the agreement. You know I'm an investor." So anyone can sue anyone, all right? Even if you have an agreement, anybody can sue anyone. So this does kind of state that you're a flipper and you're looking to do this for a profit. But again, nothing really— I wouldn't say nothing really protects you because anyone can sue anybody. All right. I know that might be scary, but that's just how it is. All right. So signatures. I don't have much else to say for signatures other than get the buyer to sign here on the dotted line and the date. And you sign— sorry, you're the buyer. This is you, Professor Payne, and this is the seller, Nathan Payne. Okay. And then the dates and whatever. You guys get it. We don't need to go over too much. And if you are wondering what this part of the contract means where it says seller acknowledgment and prohibition, I'll be honest, I don't know very well. Go ask someone else. When I get to this part, they usually don't have a problem. They just want to sign. Okay. And if they have questions, I just— I think seller acknowledgment. I do know it says basically like you both agreeing. No one like made you sign the agreement. We both agree. Okay. Now, if an attorney is watching this, he's like, yo, this dude has no idea what he's talking about. Hey, say something. I'd love to learn. Okay. I've done hundreds of deals with this contract. If I'm not perfect at explaining it, which I believe I am really good, that's okay. Now, I got a bonus for you guys. You guys want a dang bonus? I got one for you. If you're thinking about doing novations, here's an attorney-in-fact that, uh, a company that I, I listed a property on the MLS with my wholesale agreement because I can, and they're like, yeah, that's fine. And I actually have it listed here. I can show you the, the, the property if you guys want to see it. I listed it with just a wholesale agreement on the MLS, and I'm not a real estate agent. But he's like, hey, by the way, in the future, get an attorney-in-fact signed, um, so you can do it like more more, uh, so there's no issues. Because some, some, like a lot of the MLSs are saying, hey, you need an attorney in fact in order to list, not with like the old school wholesale agreement that I'm showing you. So what is this? You guys are going to get this obviously if you wait till the end, okay? This is the attorney in fact. This is what allows you to do novation and sign listing documents for the seller, okay? That's what a novation is. You're pretty much just signing all the documents for the seller, okay? If you guys are enjoying this demo— this, not this demo, this live presentation— a lot, give me a like, give me a subscribe. I appreciate it because we're not even done. I told you I was going to go in depth on contracts. There's a lot more to go over. We've gone over the structure of contracts. Now I'm going to show you guys exactly how to fill one out. Okay, so what you're going to get on this walkthrough— you don't just get taught when you, when you're with Professor Payne, you get you get shown, and I want you to try and work on it as we're doing it. So you don't just— so you learn, right? Because if you're just watching me, you're not going to be able to just replicate it unless you do it along with me. So everybody get out your computers if you're watching on your phones and do what I do, or pull up another screen if you got a dual monitor. Let's go through this. So I'm going to show you the key input details to put in on a live demo. I'm going to show you how to write the contingencies to protect yourself., okay, and common areas where people mess up. So if you guys are ready to do it with me, go to this, type into Google PandaDoc. It's absolutely free. Forget DocuSign. DocuSign's not a fan of DocuSign. I used to use it, not a fan. PandaDoc is free. Let's go right into it. Let me show you guys. So this is a contract I'm going to be hooking you guys up with. This is the one I use. Again, wait till the end of the video, you're going to get this contract. Let's fill this bad boy out. So this is PandaDoc. All you do is you upload. Let me actually do it for people who are like, they can't even— no offense, but for the guys that can't even figure out how to upload a document. Okay, I'm going to— we're going to go there. All right. So you go here to select a file. You're going to go all the way to the agreement that you downloaded. If you guys do not know how to download an agreement, I might have to come over there and bonk you on the head. But All you do is you go here, you go to down— sorry, my screen's in the way, but basically you're at the top left corner where it says File, and then from File you go to Download, and you download it as a Microsoft Word or you download it as a PDF, doesn't matter. But it's just File, Download, that's it. All right, so you take this, you upload this bad boy, you convert it because it says, hey, do you want to convert this? Sure, why not? What the heck? You put in your email and your name, blah, blah, blah. And then you continue. Okay. And this is the name of who you're going to send the agreement to. Okay. All right. I already filled, I already got this pre-ready. I, like I said, I performed, I got this whole thing ready for you guys. Cause I want to make sure I'm crushing this because I'm tired of people asking all these questions about contracts. Say, hey, I'm just going to make a complete video. That's going to be the masterclass on what real estate purchase contracts are and how to fill them out. Okay. So right here, this contract is made on, How do you fill this thing out, guys? You just pull over the date like I showed— like I'm showing you right here. I already did it here. And buy in between seller, okay? You go over here and you navigate between you and the seller. So in this situation, we'll say this is Nathan Payne is the seller. So you're going to pull over his information. Um, we're going to go over to text field and we're going to type in his name. All right, you just type in the name. Whose address is— you type in the address. And whose mailing address— again, sorry, this is for the buyer. The buyer, then you're going to go over here, you're going to pull up the buyer's information. Boom, type in the buyer's name. Boom, boom, boom, you're going to pull up another text box and you're going to put in the address of that LLC, that buyer's LLC. You're going to pull in the, the address of the property you're buying, the purchase price, terms. Okay, so what are terms? Terms are like anything additional that's not outlined in the contract. Like, hey, you're going to let the seller stay in the house post-possession for 30 days, but you're going to hold back $10,000 from the money they get until they move out. Okay, that would be an example. And if they don't get out within 30 days, you're going to reduce how much they get by $100 for every day. That'd be an example. We've had to do that. We've had our lives threatened because we did a deal with a guy that unfortunately was on meth. He wanted to stay in the property. We said, okay, you got 30 days. He didn't get out. We said, if you don't get out, you're losing $100 a day for every day until maybe 20 days, and then you lose it all. And he didn't get out at all. And we were like, we're going to take all your— we called him multiple times, but he was just flipping, tripping out. And eventually he got out, but he's like, give me my money. I'm like, bro, you lost all the money according to the contract. And he just was threatening to kill a lot of people, which is terrible, right? But we ended up giving half of him, half his money back. All right. He should have got out. Anyway, it really slows the flow of the buyers, slows the flow. And I don't feel terrible about doing that, guys, because we let him stay in it for 30 days. We let another 20 days. He knew what was going on. All right. So that's what the terms are for. Put whatever terms you want and, you know, that you agree on. Right. So let's keep going. As we talked about, guys, as you're going through the contract with the seller and I'll kind of give you a quick review of what it would look like as I'm going through the contract with seller. Now, I don't fill this out with the seller. I have it filled out before I send it to the seller. And then once I have it filled out, I say, hey, Seller, before I send you the contract, are you by your computer or your phone so we can review this together? I want to make sure that we're on the phone together because I don't want any of this language to spook you. It's pretty normal stuff. I just want to make sure that we're on the same page. And, you know, that's it. So if they're like, yeah, that's cool, so then you go forward. Um, so you're just filling this out again before you send it to them. I don't like to send it— I'll say it one more time— I don't like to send it if I can do it with them on the phone so I can explain it. So as if I'm going through the contract with the seller, all I'm doing is saying, hey, this is normal contract stuff. This is a very basic standard real estate purchase contract. Just says we're buying the house, um, on 123 Main Street for blank price. The terms is we're going to let you stay in the house for 30 days, but we're going to hold back some money until you move out, out of what you, the proceeds you get. Prorations, that's just for tax purposes, making sure that's all legit. There's no major issues with the property that you know of. We've discussed this. No judgments, no liens. You've told me that there's not, so no problem with that. Possession, obviously we discussed possession. We put it in the, um, the terms that you're going to be able to stay in the house 30 days after inspection. We discussed this as well, that we're going to need to see the house, uh, within, you know, 7 days due diligence, uh, period that we have so we can make sure there's no major issues that we've missed. Uh, the contingency part is just like we have the right to back out of the agreement if we see something that we didn't know about that we don't like. It's pretty simple. Risk of loss, that's the same. This is what I say. Now, is it exactly true? I'm not 100% sure. I've never had an attorney listen to me on my calls, but basically I just say, hey, this allows me to cancel the contract if something happens, any major damages happen after we sign. That's basically what I think it means. Acceptance, say, hey, I didn't put a date because you're either going to sign it right now or you're not going to sign it at all. We're going to figure out what's, what's the problem. So I usually have N/A there. Deposit, like we discussed earlier, it's $100. I just say, hey, we just put $100 down. And the reason we do that, I don't even explain the reason we do that. But if I needed to, I just say the reason we do is we buy a lot of properties and we have such a short turnaround, we just don't put a lot of money down. If they're like, well, can you do some more? I'd be like, yeah, would that make you feel more comfortable? You know, is there any issue with the $100? Well, no, there's not. Okay, great. Let's keep going. Close date on or before. I put 2 months out. We discussed we're going to try and close as soon as possible, but there are some issues that we're facing with having to deal with the liens you have or, you know, whatever. So instead of having to sign like a short close date, it's on or before. We're going to try and close as soon as we can, but we have it out so we don't have to always be extending this contract if it takes a little bit longer. As you can see here, Mr. Seller, You know, we're going to buy the house as is. We don't get an appraisal, but this allows us to get one if we need one. We're going to pay all your closing costs. This, this paragraph here just says we have the rights to buy in any LLC that we want. In the event that if we default, you're going to get our earnest money. But again, we're going to— we're just going to let you know we're not going to waste your time if we can't buy the house. That's not what we do. And, and this just allows us, like, if we sign the agreement that— and by the way, I don't go over every line. I'm just doing this for you guys. Okay, so, and this says basically, if you sign, you're agreeing that you're gonna sell to us, not sign with us and then try to sell behind our back, 'cause then we have the right to purchase the house after you sign, obviously, or you wouldn't sign this, right? Oh no, I wouldn't sign it if I didn't feel comfortable. Of course, I wouldn't expect you to. Okay, time is of the essence. We have the ability, or we are agreeing to close within the timeframe we said. Marketing, we like to talk, you know, we like to market the property before we close on it, just so we can be ready and we can move the deal as fast as we can because we're in the business of making money. This is to let you know that we are buying this to make a profit. We're a business, we're trying to make money. You understand that, right? Awesome. This is if there's any issues with, you know, attorney fees or anything, like we go to court. I don't go too in-depth to this. I just say, hey, this is just if, you know, things get crazy and we go to court, this just outlines how the attorney fees are laid out. Um, seller acknowledgement prohibition those just say, hey, we're both agreeing to this. No one made us. Okay, that's what I say. I say, okay, now I've gone through the whole agreement with you. Do you have any questions, or is there anything that would make you— would hold you back from moving forward? No, I feel pretty good about it. Let's sign. Boom, signed it. And if they're like, I don't know, I feel pretty lousy about you only putting $100 down for earnest money, I said, well, what would you like? You know, I can put as much as you want. It just depends what you— you know, I just We just do that. That's just standard, right? And if they're like, oh no, it's fine, that's fine, let's keep going. Or if they're like, well, can you do $500,000? Like, I can give you $505,000. How's that sound? I give you— I can give you $605,000. I can give you whatever you want. Because in all reality, guys, what did we discuss? The buyer puts down the earnest money. All these lenders that are like, let me give you EMD— you don't need someone to give you EMD. If you have a buyer, the buyer puts down the EMD and you use their EMD. It's pretty simple. I don't know how this lending thing started happening. Do people not know they use the buyer's money for EMD? Anyway, right down here, guys, if you want, I'm trying to get this signed every time, and I explain, "Hey, one of our extra strategies to selling the property is also putting on the market. Potentially, we can find a partner to work on the deal with if we want," or whatever you want to say. I haven't mastered the— explain the novate authorization listing docs, but that allows you to list it on the MLS. Okay. And do a novation. And what is that? That allows you to get paid by someone that has funding, like a family that has like traditional financing versus like cash. Okay. So that's— that was a demo of how to fill this out. And if you guys are like, well, you didn't show us how to put all the boxes, Here they are, everybody. You just drag, you type, type in what you want. And then when you get to the very bottom, you just put the signature. You are the buyer in this case. So you would drag your signature over. Okay. Over here. Bam, bam. Buyer, seller. You'd switch over and say, okay, the seller, let me drag the agreements over there. Like, let me drag the boxes over there. Hope this has been good, guys. Again, if you're watching this, if you could get— if you find this information useful, I'm diving, I'm doing a full deep dive on this stuff. You will never have to watch another video again on how to fill out real estate purchase contracts and what the heck they are. If you like this, give me a like, subscribe, or actually a comment and a like. Just tell me where you're watching from and that would help me out a ton because the more people that engage, the more— what was I going to say? The more the algorithm says, "Hey, this guy's actually producing some, giving out some good information," if people like it. Help me out with that. I'd appreciate that. All right, guys. So let's go over some common mistakes. We're almost done. Some common mistakes that people might have as they're doing this. I know a lot of people fill it out and they send it sometimes to the wrong email. They might forget, like mistype it, like, and not know if it like got to the person. They're like, oh man, did it, did it work? Check the email. Let's talk about some other common mistakes that happen. Forgetting contingencies, missing inspection clause, you can leave, can leave you liable. So remember your contingencies and the terms part of the section. If you have additional terms you want to write down, leaving fields blank, make sure that you put the closing date and you fill out all the right terms and misaligned seller names. Okay, so pretty simple. I know some of the boxes can get kind of few— it can get kind of confusing, but just make sure everybody's— the seller's box is for the seller, the buyer's box is for the buyer, and this who's signing and, and so forth. Okay. All right, guys. So I'm going to open this up. We're almost done. I'm going to open up the Q&A. If you have any questions whatsoever, I'm going to look at what's coming in my comment section. I do see a couple comments coming in. So please leave me some questions. And while I'm waiting for people to throw in their questions, let's— I'm going to give you some top tips that I think you all need to know if you're going to do this effectively and master using the real estate purchase contract. Okay, let's make sure you're 100% confident. I want to make sure you guys ask, ask your questions. I don't want you watching this and being like, I still don't feel that confident, that comfortable. This is your time to shine. Ask the questions. I'll highlight you. I'll give you a Christmas Day shout out. Drop your questions in the chat, everybody. All right, so while we're waiting, what are the top tips that I want to let you guys know about? Only send the contract after you verified that they're able to look at it. That's, that's for me is huge because how many of you have sent a contract and you get ghosted? They don't respond. You see that they look at it. They looked at the agreement like this. They looked at it with their eyes and then, you know, and they saw it and they're gleaming at it, but they're not trying to open that, like respond or sign it. Why not? Maybe because they're talking to 10 other people, right? So for me, I send the agreement, I send it when I can get this guy on the phone, right? I say, hey, are you by your phone right now? Are you by a computer? I'm going to send this thing to you and I'm going to review it just so I can make sure you feel comfortable signing it. And if you don't by the end, at least I know why, or at least I can answer any questions that you might have. That's why I need— we want to go over together. No, no, just send it to me. I'll look it over. Now, if they're like, no, I'm going to look it over, I'm going to look it over. No, no, I don't want to talk to you. That's a little bit of a red flag. Now, I've had some people that are like that. I'm like, okay, that's fine. I feel comfortable. But if they keep on saying, no, just send it to me, I'd be like, you know what? I feel more comfortable if I did. Is there a main reason why? Well, I think you're pressuring me here, sir. I'd be like, whoa, whoa. I'm not here to pressure you. I just want to make sure you're not taking my agreement and shopping around against 10 other people. Right. You could say that, right? You just, just call the elephant out in the room. Say, hey, once I make my final offer, I want to make sure you're ready to go because I can't be leaving all these offers around. I can only buy a certain amount of houses. I can only work with a certain amount of people. So it's— I want to know if you're good to go. Yes. And if not, let's, let's talk. If it's not the contract that's the problem, is it something else? Maybe we don't even need to send you the contract. Maybe you're not ready. Step back, be like, pull back. Hey, maybe you're not ready to go. And they're like, whoa, whoa, whoa, I am ready. Well, let's go through this together then, buddy. Okay. Now, I don't get too crazy like that. I'm just saying, call if you feel something funky in your heart. If you feel like something's off, call it out. All right. Make sure you read over the contract a couple of times before— if they have questions. Now, I have been stumped a little bit sometimes when I didn't really know. And guys, I'll be honest, like one of the parts of the contract, I still don't really know how to explain it. I'll show you. Maybe you guys can do a little bit of research on it and let me know. Prohibition. This agreement establishes a prohibition against transfer, conveyance, or encumbrance of title. I don't know how to explain that. I think I understand it, but I don't really know how to explain it. One time someone was like, what's prohibition? And I was like, you know what? I don't really know how to explain it, but yeah, let's just get this thing signed. And she was like, okay. Yeah, I didn't know how to explain it. Maybe I need to step up my game on the contract, but I didn't know how to explain that part. All good though. So just if you don't want to get stuck in a position like me where they're like, what's prohibition? Maybe just ask, Google it, right? I should, I should just Google it or ChatGPT it, whatever. Okay. After, what's the next tip? After getting these contracts, after getting the contract signed, send the agreement to an investor-friendly title company. A lot of you guys get transaction coordinators. A lot of you guys feel like you need someone to walk you through. Guys, this agreement, the wholesale agreement, just what we're talking about right here, the contract, the purchase of contract. Um, there's so many— I'm sorry, there's so many names, but I'm just saying the Rep C, the real estate purchase contract. Why do you need a transaction coordinator? It's pretty dang simple. You send it to the title company, they say, oh great, it looks like you're signing this, we just need the assignment agreement. You need an assignment agreement, that's another agreement. And then you're good. Now, most people, I would say transaction coordinators are needed if like there's a ton of paperwork and there's a ton of liens and it's really funky. But if it's not, there's no reason to have someone, in my opinion. Not trying to take food out of the mouths of transaction coordinators, but it's just not necessary if it's, it's pretty simple. I'm buying your house, I'm going to assign it to someone else. Title company's done millions of these and they're investor friendly, so they know what's going on. There's no reason to get a transaction coordinator or anyone involved. It's just send it to the title company, they'll figure it out. Okay, and if they can't figure it out, they suck and go with a different title company. I have a great title company that I've never had to use a transaction coordinator. Okay, but anyway, title companies, I think it depends a lot on title companies. I think a lot of title companies will do extra work to get a deal done. Maybe I've just been lucky and some other ones don't. Anyway, so we're going to go over to the questions because this was a Q&A for the audience. So let me, uh, let me see what questions have come through now. Quick question, my man Mova Maya. Thanks for watching. I appreciate you, man. Merry Christmas, or woman. Hope you're doing well. Quick question, if you're wholesaling, whose address would you put in the buyer's address part? Your own? Okay, great question, my brother or sister. Let's go over to that part. You're talking about this. This contract is made on blank date. Buy-in-between seller, that's Joe John, whose address is the house you're buying, 123 Main Street, or it could be a different house if he's got multiple houses, right? If you're buying a rental he owns and/or assigns buyer, that's you, Muvamaya, that's you. You are the buyer in this situation. You're going to eventually assign it, but you, you are the buyer. Or if you have an LLC, let's say you have Muvamaya LLC or Muvamaya Enterprises LLC, that's your company. You would say you're the buyer or the Muvamaya LLC, whose mailing address is your LLC's where it's registered. That's the address you would need. Or if you're going to sign under your own name, Muvamaya, you would say your home address. So when I was living in Utah, my address was— my home address was where I registered my LLC, one of my LLCs that I signed for. So did that answer your question, Muvamaya? It is the address of the registered LLC or your address if you're signing your own name. Love that question. That was an excellent question, Muvamaya. Muvamaya, love it. Excellent. Let's see what other questions are coming through. We have, uh, Dana coming in and saying, love the bonuses. She's from Cincinnati, Ohio. She says, I appreciate the increased interest money offer. Um, there were underlining— there were underlying, um, how to communicate with the seller tips with your presentation. Thank you. Prohibits, prohibits. Okay. It's prohibition. That means it prohibits them. Okay. I think that's what it means. You're prohibiting them from conveying title to someone else. Okay. Thank you, Dana. Excellent, simple, and lovely explanation. Zeeshan, I love you, man. Hope you're doing well. Thanks for watching. Brittany says, let's go. You're awesome. Dana says, I found you. Well, I found you too. And I think you're awesome, Dana. Thanks for watching. Any other questions? Bring them in, guys. And if I'm not able to get to you for some reason, I'm going to get to your questions after the live. I'll read them, okay? Let's see. We got some other people in Instagram saying— I got some guy from India, it looks like, saying, Amka Seni Aliasin. Not sure what he's saying, but appreciate him for participating, giving a little Christmas cheer and Christmas love. All right, let's keep going, everybody. We are wrapping up here. So we just discussed the audience questions. Leave your questions and I'll look at them later. Oh, we got Muvamaya coming in here. He says, thank you, boss man. Muvamaya, thank you. I appreciate you for being a listener. Means a lot to me. Um, everybody matters. I appreciate you. Okay guys, so we're going to recap today. So what did we learn today, everybody? I'm not done because I'm about to give you guys my contract. So if you like that, just wait. So what have you learned today, everybody? We've learned what a purchase and, uh, purchase agreement is and why, and why it's critical. Okay, key sections we went over is buyers, buyer and seller information, price, contingencies, signatures, and I even learned what prohibition was. Prohibition is it prohibits them from doing, uh, conveying title. That's what it is. Thank you, Dana. We learn together. I'm the perf— I'm Professor Payne, but I'm not— I can learn. Obviously, I'm always learning. I'm not perfect. So I love learning from you guys too. How to fill it out step by step. Did we not do that, everybody? We did fill it out step by step. Common mistakes to be sent into the wrong email. These are dumb dumb, you know, These are obviously mistakes that everybody knows, but just we're talking about it. Guys, I want to know your takeaways. If you're watching this live or if you're watching this later in the future, what takeaways did you get? I want to know what you learned. I want to know what you got out of this because I put a lot of effort and time into this because I love you, I care about you, and I want you to learn. And again, I love teaching. As you guys can see, I love talking, right? I love it. So, and not just talking to hear myself, but I like teaching. It's fun. So write down any questions, anything, any takeaways, because I'd love to learn and see what you guys got out of this presentation and many more to come. Okay, and even better yet, if there's anything you want me to do a deep dive where I can teach you guys exactly what something is and how to do it with a demo, I'd love to do that, especially if it helps you out, because if it helps you, it's going to help others. All right, now it's come down to the free contract templates call to action. Okay. If you guys don't know what CTA is, it's call to action. This is your time. I'm calling you to action. Okay. If you want to get my personal purchase agreement, the same document I've used to close countless deals, millions of dollars in transactions. If you want this thing that allows you to do novations and much more, if you want to be able to put it into PandaDoc, all you got to do is drop your email below, everybody. Drop your email in the comment section and I'll email it over to you. And if you're like, Nate, I don't know if I want to put my email out online like that, totally get it. I— it's all good. I put my email out there. You don't have to. What you can do is just join my free Facebook group, Painless Flipping Wholesaling Real Estate Simplified, because that is my goal, is to simplify real estate for all of you. Uh, That's, that's what I want. I want you all to take away all this, the scaredness or the pain or that. I want to make it painless, pain-free. Let's get you in. If you're a beginner, even if you've— look at me, guys. I've been in real estate for like 6 years. I just found out what prohibition means. So you can learn it from every day of your life. You're always learning. Okay, so if you guys can, if you don't want to put your email in there, all you got to do is go to my Facebook group and type in Painless Flipping Real Estate Wholesaling Simplified. Look, we already got one person., you know, trying to get in. I got to let them in. And let's see, I thought this was live in my Facebook group. I guess it's— I think it is live. But anyway, I just don't see it. Weird. All right. So all you got to do is join the group and then comment, say, hey, Nate, send me that, that contract, and I'll hook you guys up. I pretty much put everything in my Facebook group right here. So pretty— that's pretty much it. Um, let's see if there's anything else. All right guys, that's it. Best ways to learn is, is by doing. If you guys are struggling to get into this business and you haven't done a deal yet and you've been taking action, hey, join my free Facebook group. I got a lot more training like this and there's a community where people can help you for free. Got a lot of free resources that should be able to help you. But the best way to learn is by doing. If you guys have been studying this out for a while and haven't got a deal, you got to look yourself in the mirror and say, hey, have I been doing that much? Have I really been able to learn that much? Have I taken the action to actually— have I been doing stuff to learn? That's the way to learn. So don't forget, guys, practice makes perfect. Use what you've learned today and go close your first or next deal. I got your back. This has been Professor Payne. P.S., if you have any specific lessons you want me to teach, I've already said this, comment and I will watch them. I'll look below and I'll be able to determine which ones I'm able to do. I'll like pick the top ones, topics I want to teach. Professor Payne out. Merry Christmas, everybody. I'll see you on the next one and share this with a friend. The greatest gift you could give me for Christmas is to take this video, like it, share it, subscribe, share this with the world. My goal, guys, 2025 is to make wholesaling simple. Make real estate simple. You're going to be getting a lot more lessons like this. I'm not playing anymore. You— the content that I've made, the videos I've made, they were good. I made them. They're okay. I would say they're good, but you guys want some information. You want to be taught. This is what I'm going to bring you guys, in-depth training. So you will never have to go anywhere else but what— from what I have to say, my channel, to learn how to get into real estate because I'm making it simple. Peace out, everybody. Professor Payne out.