When it comes to learning all the moving parts in wholesaling, one of the biggest questions I get – both within my AstroFlipping course and through my DM’s – is what documents are needed to lock up a deal.
As wholesalers, our contracts allow us to work with sellers, while also being able to help sell their property. To start this process, there are two different contracts we need:
The purchase contract is what you’ll need to buy the property from the seller themselves; this is why it’s called an A to B contract, where you’re the A person buying from the B person (the seller).
The assignment contract essentially assigns your rights to the purchase contract.
Now that you know what you need to start doing deals, let’s get down to the nitty and the gritty – how to fill these suckers out.
How to Fill Out Your Purchase & Assignment Contracts
Filling out your purchase and assignment contracts are, yes, boring – as filling out any type of paperwork is – but it’s fairly straight forward.
I did a quick video walkthrough that you can check out below:
Again, the steps are easy. For the purchase contract:
Fill out your name on the BUYER line and the seller’s name on the SELLER line.
Put in the address of the property. If you aren’t using the MLS for this property, then you can ignore the ACCESSOR number.
Fill out the city, the state, and the zip code
Fill out the agreed purchase price and the agreed upon deposit, which goes on the EARNEST MONEY line. Then put the remaining amount on the CLOSE OF ESCROW (COE) line.
Put in the CLOSE OF ESCROW (COE) date.
Now the last two items – possession date and fixtures – are dependent on the seller. Possession date might be different than the COE because a seller might be staying at the home after closing.
If there is, this would be known as post-possession.
Fixtures refers to anything that the seller is planning on taking with them from the property. As mentioned in the video, if the seller decides to leave all of the appliances except for the fridge, then you would note that.
Be aware that when you have any type of changes like this, both you and the seller will have to sign off on these.
Another thing to note is to make sure you have a relationship with a good title company before you start filling out paperwork.
I mention the reasons in the video, but essentially, there are more problems when you don’t invest in having relationships prior to signing anything.
Guys, doing paperwork is the boring portion of wholesaling, but it’s extremely important that you fill it out properly in order to close those deals.
Make sure you get copies of the contracts above and if you need even more help or guidance, come and join the Astro community.