In this video, we’re going to show you how to fill out a contract to buy an apartment complex step by step tutorial. Check this video to know more!
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What’s up everybody? It’s real estate Nate today guys, I am filling out a real estate contract. I’m about to buy our apartment complex. And I wanted to use this opportunity guys to show you guys how to fill out a real estate contract. Right? Because maybe some of you guys have never done it. And, you know, I just thought, you know, I’m going to do right now to buy buy a complex, but to send the contract over, so why not show people how to do it, okay?
Because that’s, you know, why not right, go to investor thrive.com right now to check out some of our free training on how you can make money as a real estate investor or schedule a time with me so we can chat about our mastermind, mentorship, and how we can help you learn how to wholesale nationwide and grow your business. And guys, by the way, today’s been a tough day, which is going to be real. I am not the happy usual guy that I am shooting you guys straight, but I’m doing this because I’m in gotta keep working. You gotta push through. But I’m gonna show this and I don’t want to get all crazy, like sentimental on you guys or anything crazy. But I pray for my wife pray for my dog. My dog passed away unfortunately today, and I love my dog. Best dog ever.
My wife raised them, you know, from little baby. So that’s why I look kind of like, not pumped. But yeah, tough. First of all, I pray for my wife, man and for me to them. And it’s sad, but I just wanna let you guys know, because if you’re gonna watch this video, and you’re gonna be like, Why is Nate not pumped? Right as well. Stuff happens, right? And it’s really sad. But yeah, tough for us all, man. Appreciate the support. But yeah, guys, man, unfortunately, you got to, you got to keep going. You know. And, again, this is not a pity party.
I’m not on here. So you guys feel bad for me. I’m just letting you know, you got to work. And I want to show you guys how to fill out a real estate purchase agreement because I’m literally about to do it. And I think that will help you guys out. And that’s what I’m all about providing value. So let’s fill this thing out.
And then you guys have a good weekend, pray for us pray for my dog. He’s in heaven. Love my boy. Alright guys. So let’s let’s do a real quick, I’m going to walk you guys through how to do a contract. If you’ve never done one, I usually use Docusign. But this thing is called panda doc. I don’t know if you guys have never heard of panda doc, but it’s pretty easy. So basically, what you do is you just take I took our real estate purchase contract that we use, and I just uploaded it into this file got like up as a file, super easy. And then you pick who you’re going to email to.
So I was going to email it to me and we email to the seller. Okay, so let’s start from the top. I already filled it out. So it’d be quick, guys, but this is how you fill it out. So ours is just a regular real estate per scrim. It’s not state approved. It’s just one that we got from an attorney. Yet it’s battle tested. It’s a great contractor works for us this contract is made on Well, it’s made today. So all you have to do is bring over the date.
And if you go over here to my name, you go to sit, you just bring drag over date. So that’s what I did here. And I picked the specific date. All right. Seller, one would be me by sorry, I’m not the seller. So I put the sellers name. So I’m going to fill this full name. I’m just going to put that just to show you guys and I’m going to walk you through the contract. So you guys know you know how to walk someone through an agreement if they have questions.
Usually I do this with the seller on the phone and I walk them through the agreement but you know, I know this seller I just I’m gonna send this over to him we’ve already talked about it hashed this out so but I’m going to walk you guys through it so you know how to address these issues and walk someone through a contract so you then you put the address, I put my address because I’m buying under miles no sorry, this would be the address of the seller.
And then this is an the buyer which is me on the buyer side put me my LLC and then the at my address. So right under here, number one is the purchase and sale the seller goes the seller agrees to sell and the buyer agrees to buy the the address of the property that you’re buying. Right here purchase price, pretty simple. I’m putting the purchase price of the apartment complex I’m buying right here, you know, let’s just fill it out. Right? That’s what we’re, we’re paying around that. Well that’s what we’re paying for it terms. There’s no terms in the deal because it’s just it’s just straightforward. It’s a cash purchase.
Okay, so proration So okay, so this is this is I’m talking as I’m talking to you guys, this is how I talk to the seller. So I’d say hey, let’s go through this contract really quick. As you can see, it’s got our information it’s got the address got the purchase price, there’s no specific terms because we’re just buying it as is probations that just means you’re going to cover the taxes on the property while you own it and then obviously when you sell it all the taxes of today that you’re there’s no defects over five years there’s no defects in the property no you know no zoning environmental hazards you know, substances health code red you know issues you’re just letting us know there’s no defects sellers usually say okay, there’s no deal okay, then you say okay, number six, no judgments, no liens now. Keep possession. So we are obviously going to take over possession once we close on the property.
Okay, so versus that’s fine. Okay, inspection. And by the way, don’t read this with the seller, you know word for word, I just kind of go over it. And if they have a question I stop, I address any questions, any concerns. So then number eight, I just say, okay, that gives us the right to do an inspection we use, we’re obviously going to give you a heads up if we need to do it. And as we’re going to do an inspection, we’re not just going to show up, they say, okay, contingency, this just means that, you know, obviously, we have the rights to back out of agreement, if, you know, we see that you told us the house was red, and we go in, it’s blue.
This is just to show us, you know, to protect us in case you didn’t disclose all the information, we have the contingency back out. I mean, I’m upfront about it risk of loss, that just means if we agreed to purchase the property, and then a tornado hits it, something crazy happens, then obviously, we’re we agree to buy something different, that would be risk of loss, acceptance, that you can put a date in here, I usually put non applicable Na, because they signed the agreement with me while I’m on the phone.
So that’s, you know, I don’t really have that, but I’m putting on this one earnest money, you know, you put a certain amount of earnest money down, usually, if it’s a wholesale deal, you want to put down as little as possible on buying this. So you know, that might not even be a lot, but I explained to the seller that, hey, look, you know, I’m putting down my earnest money after our due diligence period is over. So you know, I’m either gonna buy it or not, you know, there’s, I can put a ton down, I’d rather not because I usually have to, you know, pull my money out and pay interest on it.
So you know, if anyone ever has a concern about earnest money, where you put 100, or 500, just say, Listen, I’m paying cash for this, after the due diligence period, if it’s if it’s good, I’m going to be closing like a week after or so there’s really, I mean, we don’t really put a ton down because you know, we’re going to buy it or not, okay, and I’m not going to tie you up. So they usually say, okay, that makes sense. Now, if you’re going to hold their property up for like, a month or two, then yeah, I get them wanting more earnest money, but the way we do is we just say, hey, look, like I said, I’m putting their earnest money down after the inspection.
So you know, just to make sure everything’s fine. I don’t like putting my money down, and then canceling that have to get my money back from escrow. You know, you can explain that. Usually, this is never an issue, I never really had to talk about this, but that’s how I explain it. Closing, I always say 30 days, or if you need more days, I just say 30 days from the seller signing the agreement, okay, by five o’clock, okay, so this is where it gets into, you know, specific content, like, you know, contingent not contingencies with specific bullet points. So the buyer agrees to buy the property as is okay, so you’re buying the house as is that’s why we didn’t have anything in the terms of the ask him to do anything of buying it as is contract subject to acceptable appraisal, we never really get an appraisal, I tell people that but we just say it’s an agreement, buyer to pay all closing costs.
Okay, you know, we’re gonna pay all your closing costs, buyer may assign or otherwise transfer any of the buyers rights title and interest in the property to someone else. So I tell people that sometimes I buy properties. In my LLC, sometimes I buy ones in LLC, I create with business partners, sometimes I assign it to someone else. And that’s where the wholesaling clause comes in. Now, if anyone has a problem with this, if you’re talking to a seller, and they’re like, whoa, whoa, whoa, I don’t like that, then you can say, Okay, well, you know, I plan I’m not planning on, you know, wholesaling this one, right, because I’m buying this, but if they have a problem with that assignment clause, you can address that and say,
You know, honestly, like, I work with business partners, and I like to have this in there in case we open up an LLC together, and I buy it with multiple people. This allows me to do that without having to sign another agreement. If they’re still don’t feel good about it be like, Well, look, I specifically I’m going to work with someone that I know on this agreement, so I can I’m gonna put their LLC specifically in there because that’s who I’m working with.
So that’s a way to get around the assignment clause. If they don’t feel comfortable about it. You can say hey, I’m science to specific LLC. So when I’m working with this is not just someone random, okay? And if they’re, you know, if they’re still skeptical, then you can just take it out. And then just, you know, when you do find someone, you can say, hey, I’m gonna need add it, I’m bringing a partner and if they’re like, no, no, once you have a partner, that’s completely not, you know, logical, like, if they want the deal done, and you got it done, then you know, you can add later, I this is never a problem, either because you’re open and transparent with people about what you’re doing. I’m buying it or I’m working with business partners to buy it.
Not a problem. Okay? Never This is not a problem. Okay? Again, I’m gonna stress it not a problem. Don’t worry about it. And if it is from talk about it, the normal address the situation Justin concern, in the event that the buyer defaults, what do you do you get our earnest money if I after due diligence period, don’t buy it, you obviously get my earnest money. Pretty simple seller agrees that by executing by signing this, they’re agreeing to sell it to you.
Okay, great. So this is this, this clause right here enables you, if they sign it, and they try to back out the day before closing, or you know, just try to back out and sign with someone else. This clause right here allows you to file an affidavit of memorandum and then they are agreeing that by signing this, they allow you to do that and saying yes, I’m agreeing to sign this and then this normal that’s no Like if someone’s agreeing to sell your house, they’re agreeing to sell you their property. By the way, guys, this I’m not a an attorney, not like giving you legal advice. This is just how we do it.
So I have a question on here, but I will address that address at once I’m done. So the next thing is number 15 Is time is of the essence I just say 15 times of this since we have the time allotted to us to buy the property. And that’s what it means. buyer’s disclosure, sorry, marketing, we have this and I tell people that sometimes we pre market the property before we close on it just so we can have some buyers ready in case we want to sell immediately.
People never have a problem with that, that allows you to market the property if you need to. 17 buyers disclosures, this is the clause that allows you to mark the property up making a wholesale fee or invest and then not be upset with you. If you make money. You told them right you told them right here, hey, my goal in here my the buyer disclosure is I’m an investor and I’m purchasing the property with the intent to make a profit. That’s what it says.
So you’re telling people up front, like hey, that’s why I’m doing this, like I’m not trying to pull the wool over your eyes. I’m an investor I’m trying to make money. So that’s why we’re doing this. So they’re like okay, you know, if they get crazy and they tried to back out of the contractor you put invest money into the proper use something and then carry it back out. This clause is just there to protect you for attorney fees. Like if they tried to sue you.
I think there might be you know, something in here that just says like, you know, they’re they’re liable for the cost of you and your attorney and theirs if they do something funky. Number 19 seller acknowledgement. This just explained, hey, this is this seller acknowledging that means that you acknowledge and I acknowledge that we are working together, no one was forced to work together and then prohibition I don’t really know exactly, never really dived into what this means. It’s a simple line.
This agreement establishes a prohibition against transfer conveyance that converts the property and you think that just means you can’t transfer the property to someone else. But again, I’ve never had too much of a question. Now guys, I don’t like I’m explained to you guys. I usually go over this pretty quickly. And if there’s any concerns or any questions, I stop and I address it. I love reading the contract with sellers because there’s nothing to hide, okay, I don’t want to send this to them and then just hope they sign it I want to send it to them and read it with them again this is my friend and someone I’ve worked with before so I don’t need to read it with him but showing you guys that when you talk to a seller you need to get them to sign the agreement with you on the phone or in person.
So any roadblocks concerns any deal killers come that come up you are addressing them right there. You’re seeing you’re hearing their tone. I usually do this over the phone with them by the way. If you know since we’re doing a lot of virtual deals, so then all you do is you drag this field over signature date signature date, and that’s it then you send it off I sign it he signs it by the bing bada boom, easy.
Okay, guys, so that is that’s pretty much it. It’s pretty simple. I’m buying an eight Plex I’m pumped. You know, it’s gonna cashflow we’re excited we’re gonna update it guys you just got to make offers and like I told you guys the beginning of video you know things get tough. Life is tough you know I didn’t really honestly think life was that tough until I got older but there’s a lot of issues that happens and you just got to keep going I meant to say in a pep talk for any you guys I’m just saying like don’t don’t give up keep working hard things happen.
I do have some people some questions that came through so I’m going to answer these so it says Do you have experience with prime Corporate Service in Salt Lake City Do you have holding companies so I do have experienced in prime Corporate Services I do recommend them I can send you a link and if you use my link they you get a discount if you go with them you get a you get a good deal okay so that is some I do work with them I had another question and by Do you have holding companies I do not have holding companies okay, what what company do you use to wholesale so I’m not sure what you mean by what company I used to wholesale I use my my LLC and my businesses LLC to wholesale but that’s pretty much that’s pretty much it so I don’t know if you have any if that’s what you met but anyway, guys, it’s the weekend I want to everybody prayers are going out to everybody.
I hope everybody has a great weekend. Like I said Life Life can be hit you in the gut, but you got to keep going and yeah and hopefully you know what I just showed you enables you guys to take action with when it comes to signing contracts because guys like everything I do. From here on out if I haven’t is I want to enable everyone that sees my stuff to go and take action. Okay, that’s why I have videos that’s why I do what I do. It’s not to like flex or make you guys like I don’t think I’m cool.
I don’t care about that. I’m just giving you information that I’m doing as I go and I’m like hey you know take action guys. I don’t want you to watch my stuff and think it’s cool. Go anything that I’m You can do to okay you can go out and do it go make money go make offers to sellers get stuff done because that’s why we’re all in here. You know, if you’re watching my stuff you’re probably want to you wanting to take action. So I just showed you how to fill out a real estate purchase agreement how to explain it to someone. Very simple, nothing complicated. Go find yourself a deal. Have a great weekend. Don’t give up and believe in yourself. Let’s go later.