Real Estate Wholesaling Contracts Made Simple (Even First-Timers Get This)

We've gone over the structure of contracts. Now I'm going to show you guys exactly how to fill one out. What you're going to get on this walkthrough, you don't just get taught when you're with Professor Payne, you get shown. And I want you to try it and work on it as we're doing it 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 gonna show you the key input details to put in on a live demo. I'm gonna 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 gonna 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 'cause it says, hey, do you wanna 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 gonna send the agreement to. 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'm showing you right here. I already did it here. By and 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 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. $100 for every day. That'd be an example. We've had to do that. I 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. 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, um, but we ended up giving half of him— half his money back. All right, he should have got out. Like, anyway, it really slows the flow of the buyers, slows the flow. And, and I don't feel terrible about doing that, guys, because we, 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, uh, 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 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— 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. 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 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 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 judgment. 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've 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. 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. Wholesaling doesn't have to be complicated or lonely. Join my free Facebook group, Painless Flipping: Wholesaling Real Estate Simplified, where we're building a community of wholesalers crushing their goals. You're going to get access not only to free training but tools and even one-on-one help to land your next deal. The link is in the description, so don't miss out. Risk of loss— 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, or we're going to figure out what's the problem." I usually have N/A there. Deposit, like we discussed earlier, it's $100. I just say, "Hey, we just put $100 down. 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? Is there any issue with the $100?" No, there's not. Okay, great. Let's keep going. Close date on or before— I, 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, 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 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 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, this says basically if you sign, you're agreeing that you're going to sell to us, not sign with us and try to sell behind our back, because 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, we are agreeing to close within the time frame 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, 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. Seller acknowledgment, 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 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, and 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 so potentially we can find a partner to work on the deal with if we want, right? Or whatever you want to say. I haven't mastered explaining the novate authorization listing docs that allows you to list it on the MLS and do a novation. And what is that? That allows you to get paid by someone that has funding, like a family that has traditional financial financing versus like cash. Okay, 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. Let me drag the boxes over there. Hope this has been good, guys. Again, if you're watching this, 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 the algorithm says, hey, this guy's actually producing some, giving out some good information if people like it. So 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 and not know if it 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, uh, can leave you liable. So remember, your contingency is in 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, the right terms. And misaligned seller names. Okay, so pretty simple. I know some of the boxes 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, um, so forth. All right, so here's your next step, everybody. Join my free Facebook group called Painless Flipping Wholesaling Real Estate Simplified. If you're ready to take action and close your deals faster, this is where you need to be. You're going to be getting live trainings, free resources, and support all along your way. Link is below in the description, so just click it there. And don't stop there, watch the next video here to learn more about wholesaling strategies that will help you get your next deal faster. Click it now and let's keep the momentum going.