In recent blog posts, I showed you how to avoid the worst pre foreclosure and probate investing pitfalls. Being aware of these mistakes and how to avoid them can save you time and money, and ensure that you get off to a smooth start in pre foreclosure and probate investing.
In one of the recent blog posts, I showed you how to avoid the 3 worst pre foreclosure and probate investing pitfalls. Being aware of these 3 mistakes and how to avoid them can save you time and money, and ensure that you get off to a smooth start in pre foreclosure and probate investing.
Today I am going to talk about something that many beginners find a little scary: real estate contracts. By the time you’ve finished reading today’s post, I hope you’ll see how simple it is to properly complete a real estate contract, and how easy it is to use your contract to fully protect yourself in case a deal doesn’t go as planned. You would use the exact same contract to purchase a foreclosure as you would a probate home.
By answering some of the most frequently-asked contract questions, my goal is to take the mystery out of contracts, once and for all. Let’s get started.
“I’m afraid of all of that legal mumbo jumbo. How do I know I won’t do something wrong?”
While I can’t take the place of an attorney, and I would never discourage you from getting an attorney’s advice for anything you’re in doubt about, you can complete a legal and legitimate contract without the help of an attorney. Why? Because you’ll be using a pre-created legal contract that’s been supplied to you by a local real estate agent. This type of contract is a real estate contract that has been approved by your state. All you’ll need to do is know how to properly fill in the blanks.
My course gives you a sample contract, and shows you, step-by-step, line-by-line, how to fill out a contract. It even tells you how to get real estate contracts, free, and how to get a real estate agent to help you fill out your first few contracts.
“What if I want to change part of the contract?”
Before you or the homeowner sign the contract, you can cross out parts of the contract that don’t apply, and you can add special conditions by handwriting or typing them in. NOTE: Anything that you hand-write into a contract will override the original contract. This means that you can change the contract by simply writing the change(s) into the contract by hand. This allows you to tailor the contract exactly to your needs quickly and easily. Whenever you do this, though, both you and the seller must initial each portion that is added or crossed out. This shows that all parties acknowledge and agree to the additions and deletions.
“What if something goes wrong with the deal and I want to back out?”
A “weasel clause” allows you to back out of the contract if you feel uncomfortable about it, and protects you from legal liability. In fact, you should ALWAYS have a “weasel clause” in your contracts. My course shows you exactly how to write a weasel clause, and where to put it in your contract.
“Is a legal contract really that simple?”
Yes, it’s very simple. But besides filling in the blanks correctly, here’s what makes your contract legal:
1) You make an offer
2) You get acceptance of that offer
3) You sign the contract
4) The seller signs the contract
5) You give the seller a deposit on the contract.
It’s that simple. When the seller cashes your deposit check, the contract is considered legal and binding.
And by the way, remember how I’ve said that you can do a deal with just 10 dollars? Here’s where that 10 dollars comes in. Yes, it’s true – your deposit only needs to be 10 dollars!
I hope you’ve seen how even a beginner can complete a legitimate contract for a foreclosure or probate deal, and how you can ensure that you’re completely protected, even if you want to back out of a deal. There’s plenty of help in my course to ensure that you’ll be able to confidently negotiate every contract, starting with your very first deal!