Thanks for tuning in everyone. This is Nathan Payne. Welcome back. And today we’re going to be talking about how to fill out a real estate contract. And the reason why this is important for you guys is because if you have a deal and you want to work with the seller, you’re going to need to fill out a contract
by the end of this video, you’re going to know exactly step by step how to take a seller through a real estate contract where you get one how to do it, I’m in stay tuned, there’s going to be some awesome stuff involved. Today we’re going to learn what is a real estate purchase contract, or what a lot of people call Rep. See? Also why are contracts even important? Why do you even need a contract to sign with the seller to buy their house? Are contracts even legit? Are they binding? Or can someone bail on it? Also, how do you use one? And when do you use a contract? So let’s dive right in everybody a rep see what is a rep see, well, a man, it’s pretty simple. It’s a real estate purchase contract, real estate purchase contract real estate purchase agreement, whatever you want to call it, all it is is an agreement between you and the seller that you’re going to buy their house.
Now, there’s lots of different real estate purchase contracts, there’s ones that are from the state, there’s ones that attorneys can draft you up, the one that I use is the one that an attorney drafted up and over the years, we’ve modified it, we’ve updated it. So we can put in other clauses that protect us protect the seller, that just make it ironclad and better. But a real estate purchase contract, simply put is just a way for you to sign an agreement with a seller so you can buy their house. And so there’s an agreement in place. Real estate purchase contracts are important because it’s the way that you move a deal forward. If you talk to a seller for a year, and just keep talking, hey, I’d like to buy your house, I’d like to make an offer nothing signed, there’s I mean, you’re wasting your time, the goal is to get a contract signed with the seller, so you can move forward, take that contract to the title company or an attorney, if you’re in an attorney, state and move the transaction forward.
You know, in honestly having a contract signed or even putting that in front of the seller is going to let you know if they’re serious or not like, you know, I’ve dealt with a lot of sellers where I’m talking to them. And then I finally bring up the contract and they start making a bunch of excuses. And then you find out okay, are you really the decision maker? Can you sign this agreement? Do you even own this house? There’s a lot of important things that you know, you’re able to find out once you find out you bring up the contract, and if they’re ready to sign? So are contracts legally binding? Or is it just a piece of paper, that doesn’t mean anything.
So a contract, if you sign a contract with the seller is legally binding, they’re agreeing to sell their house to you. And according to the contract that I have, it states like hey, you are entering into this agreement, you are agreeing to sell his house if you try to back out or if you don’t fulfill I have the right to file a notice of interest on the property affidavit memorandum and enforce my right to purchase the property because that we this is what we’re agreeing on. And sellers sign that willingly they know what they’re entering into. So a contract is legally binding. Now let’s kind of talk about that. Does that mean that you can force them to sell if they sign? Well, I mean, if you take into court, maybe if they try to back out in the ghost, you never see him again, you can try and take that to court. But most judges aren’t going to force someone to sell their house if they signed a contract. But what you can do is you can put a lien or notice of interest on the property.
So if they tried to sell it to someone else, you can be there. And that’s kind of what we do in our business is if someone agrees to sell us the house and they try to back out of the legally binding contract, I’m not going to take them to court, I’m just going to say hey, look, that’s fine. If you don’t want to sell it to me right now, you agreed to so I’m going to file notice on your property. And when you do sell I will be there because all of the title companies or good title companies will find your notice on the property and they won’t they won’t mess with that because they don’t want to get into the weeds and the problems of a contract like that. So it is legally binding. Can you force someone to sell no even if they sign but there are ways for you to kind of control and show that you have the rights to buy it. So before I move on to the next point, I want to let you guys know that if you’re struggling to know how to fill out a real estate contract, I have a gift for you that’s going to change your lives. I have a video inside my Payneless Wholesaling mind map that you can get it literally I walk you through step by step, show my screen, how to fill out my real estate contract and as a gift to you, I give you my real estate purchase contract. I’m not an attorney. I’m not a CPA,
I’m not giving you any legal advice, but if you want to use my contract, go ahead. And if something happens, I’m not liable. I mean, because I have no idea how you’re using it but I will give you that information for free. Go check it out go to my mind map so what when do you use a real estate purchase contract? When do you even present the idea that you need to sign an agreement? Well, for me, I tried to do it on the first call with the seller when I’m talking to him I say hey, look, the reason I’m calling you is to ask just to buy your house and then that I either got your information from Pay Per Click I got your information from a postcard or I’m just reaching out to you. But the point of this call is to see if I can buy your property. So let me ask you this Mr. And Mrs. Seller, if we were to come to an agreement that makes sense for you, or purchase price and move forward, are you ready to sign a purchase agreement today, if I sent that to you, that’s one of the first things I asked because I want to know if they’re ready to move forward, because that’s what when you present it, you present it when you want to move the transaction for him by the house. So you say that to someone and they say,
Oh, that’s great. I’m actually not ready to sign anything right now, even if you gave me the right price, I’m just not ready to make that decision, then I know not to waste my time, or I know where they’re coming from. But if you don’t bring it up in the beginning of your conversation, where you’re trying to take this transaction, trying to move it forward, you could spend the next year of your life talking to someone that might never have the intention to sell it. And they just like talking to you. Because I talked to old people all the time that they just they just want to talk. And that’s fine. I like talking to old people sometimes. But it the thing is, if I’m trying to get a deal across the finish line, I want to know, am I wasting my time and talking to you or do you want to sell so that’s why you need to present it.
And when you need to present it what makes a contract official what makes it like ironclad or as ironclad as you can do well, you need to put down earnest money, if you just sign a contract with the seller, and there’s no earnest money put down that’s that contracts really not really not going to do anything for you. And I know because there’s some times I’ve signed agreements with sellers, and then they tried to back out, I haven’t had my earnest money down, it really just doesn’t doesn’t do anything. So you need to have your earnest money and most contracts will say EMD earnest money deposit, it can be $1 can be $10 million dollars doesn’t matter. I usually as a wholesaler, we try to put down as little as possible, and we explain to the seller, hey, we’re doing a lot of deals, we have a lot of transactions, and we’re closing super quick. So we usually just don’t put a ton of money down just because there’s no point to doing that.
So that’s how I kind of explain it. But you need to put your earnest money deposit down at a title company with an attorney anywhere to show that you know, you’re serious about buying the deal. Another thing you need to do on the contract to show that it’s official, you need to put a closing date, if you sign a real estate purchase agreement, you say that there’s EMD, but you don’t put a closing date, then that’s you’re in limbo, like what are you going to close on it. So you need to put a date, when you plan on closing on the property. That’s how you make this thing official.
So I don’t have a real estate purchase contract in front of me. But I’m going to kind of whip out just because I’ve done this so many times and tell you how to fill one out. The first thing you got to do at the top of the real estate purchase contract, the least that I have is you got to put the seller who’s selling their name, you got to put your the buyer or you you got to put your name in there. And you got to basically agree, I guess who’s buying it? Are you having the right person that owns the house even on there? Are you are you buying it? Or is your LLC buying it? And then after that the next line would be the contract that house that’s going under contract, what is the house that you want to buy the property address, so you’d go sellers name, buyers name is agreeing to buy the property at this address.
And then my contract, what it says is right after the property address, it says the price, okay, it states the price that you’re going to be purchasing the property for right after that line, it’s got some terms in it. So if you want to buy the house and you have specific terms, like you know, I’m going to let the seller do a post possession of the property after I buy, I’m going to let them live in it for you know, 10 days, if they live in it for 10 days, I’m gonna hold back $10,000 in escrow in case they don’t move out. And if they don’t move out, then I get to take $100 Every day that they stay in there. There’s just different terms, right? Like or for example, Hey, I really liked that chair. Can we throw that in the contract? Oh, yeah. Okay, great.
So I am agreeing to buy the house for 150,000. And I get the chair in the living room that’s green, I love it or anything you want. And the term is really whatever you want to write, I’m keeping the dishwasher, I’m keeping the dryer, whatever. So right after the term section, there’s just a bunch of legal stuff that guys I’m not again, I’m not an attorney, but the legal things are basically like, Okay, how are the taxes dealt with the contingency clause? Are you going to have an inspection, you have to have the earnest money deposit, you have to be determined when that is the closing date. You know, there’s just a bunch of different things that go into contract that again, if we had the paperwork, it’s all boring stuff. But all you got to do is basically get them to agree who’s who you’re buying it from what LLC or what name, you’re buying the purchase price, the terms the property address, the earnest money, the close date, you got to state also if you’re buying it for cash, you can say hey, buy it for cash or not.
And the cool thing is with contracts too, is if you fill out a contract and you miss something, you can always sign an addendum to the contract and then one and two, how many ever denims you want, and you would just put in if you missed anything, right? So once you have all that stuff, then you just have the signature, your name date in the signature of the seller, the buyers will if there’s multiple buyers or multiple sellers, you just have their signatures. You can do it over DocuSign or you can do it in person. I prefer DocuSign because I do Most of my deals nationwide where I never even meet the seller or even see the house I do most of my deals over the phone or on the computer digital like anywhere.
That’s the great thing about this industry too is you can do everything over the computer and everything over the phone without even having to see the house. So that is just in a nutshell how to fill out a real estate agreement without me just showing you but I do have videos on my YouTube channel and in the mind map that I told you about that specifically show you step by step how to fill one out so I got something that I want to give you it’s called the Payneless Wholesaling club now guys what I do is I show people exactly how to get into wholesaling with a very very low offer low ticket offer most coaching is like five to $10,000 for a mentorship. I provide the coaching to other people charge five to $10,000 for I charge 297 a month for it where I give you a weekly call, I give you all the resources you need. I even provide leads for you to call and give a lot of other things like if you want to JV if you need to help finding a buyer, I’ll give you 60% If I bring the buyer and I’ll take 40% of the wholesale fee, the club is the greatest thing I wish I had it when I started that’s why I made it. Join the club. Love to work with you
