Wendy Patton

Basic Components Of Real Estate Investing Contracts
by Wendy Patton

Real Estate Investing Contracts 101In real estate we want to control our risks, either for ourselves, or if you are a real estate agent you want to control the risks for your buyers and sellers. The best way to control risks is by having contracts and clauses that offer protection for you and your buyers and sellers. Most contracts are pretty generic. Real estate contracts are fully negotiable other than what is required by state law. You don't have to use the standard real estate contracts form provided by a Realtor. Real estate contracts need to be thoroughly written and understood by all parties involved in a real estate deal. However, if you draw up your own real estate contracts, you want to have it first reviewed by a real estate attorney.

Pricing Real Estate Contracts

The most haggled over part of real estate contracts is the price. When the seller counter offers with an unreasonable price, a good strategy is to include comparable sales with your next offer. Another good strategy is making changes in the terms and conditions of real estate contracts.The bottom line is determining what are the most important terms and conditions to the seller. Often it is the price but not always. For the seller, another important term of the sale is often the closing date. That is the date they receive the proceeds of the sale. As a buyer, one strategy you can use is a fast closing date. But sweeten the deal by including an automatic extension if the closing date can't be met for some unforeseen reason.

Real Estate Contracts - After the Inspection
All real estate contracts need to include an inspection clause. With enough experience, you may become confident enough to perform the full inspection yourself. However, most of the time, you want an impartial professional inspector. He or she won't give the home a pass or fail grade. The inspector will only tell you what problems exist with the home. Even brand new homes have small problems. Never expect a perfect report.As a buyer, something that is important after the inspection is that it opens up real estate contracts for further negotiation. Whatever is listed as a discrepancy, creates an opportunity to counter offer with a lower price. Or change any terms and conditions that you that you aren't satisfied with.
Financing Real Estate Contracts
The terms of buyer financing are often important to sellers. Even when a seller will receive 100% cash for the sale, you're better off when you can offer a large down payment. When multiple real estate contracts are on the table, the seller will consider a 20% down payment more favorably than a 1% down or a zero down offer.You can always add a special addendum to real estate contracts. These can include almost anything you want. Maybe, you ask the seller to include a home warranty or a new coat of paint or to replace the carpet. Special addendums to real estate contracts are where you can ask for almost anything you want that isn't covered in standard real estate contracts.In many states now there is a required sales contract that real estate agents must use. If this is the case you can always add addendums to that contract to include the clauses that offer you the investor, home seller or home buyer protection in your real estate investment transaction.


Wendy Patton
Wendy Patton is widely recognized as one of the most inspiring speakers on "Little or No Money Down" real estate investing. Her real estate savvy and great depth of experience and knowledge has helped her in orchestrating the most complete and easy to follow, Lease Option Program in circulation.

Wendy is a licensed real estate broker and licensed builder with her own real estate company in southeast Michigan called Majestic Realty, LLC. She is the past President and Board Member of D.O.L.L.A.R.S. Wendy has experience in land development, property management, rehabs, foreclosures, but lease options are her favorite. Now, with over 18 years of experience and hundreds of transactions on lease options, Wendy Patton is extremely excited about the idea of teaching others and being given the opportunity to help others achieve the same level of success.

Wendy Patton Products (6)
CoursesBuying On Lease Options
CoursesGet the Deed
CoursesMaking Money With Partners
CoursesReal Estate Wealth Building Arsenal
CoursesSelling on Lease Options
CoursesWorking with Realtors

Copyright Notice
Copyright 2002-2020 All Rights Reserved. Published with Permission of Author. No part of this publication may be copied or reprinted
without the express written permission of the Author and/or REIClub.com.

Back to Top

Free Newsletter

Article Options
Printer Friendly Page
Send This to Friend

Author's Articles
7 Steps For A Successful 1031 Tax Deferred Exchange
Real Estate Investor - How To Be A Landlord
8 Tips About How to Be a Landlord
Basic Components Of Real Estate Investing Contracts
Beware Of Potential Scams
Buying Real Estate with Lease Options
Control Property Without Ownership Using Lease Options
DIY House For Sale - Good Idea?
Documenting Seasoned Funds and Paper Trails
Financing - What Are Seasoned Funds?
How To Do A Rent-To-Own As An Investor Seller
How to Find a Buyer Now For Your Deals
How To Find A Seller Now
Lease Option vs. Subject Tos
Lease Options in a Soft Market
Lease Options vs. Subject To's--Different Techniques
Lease Options: Little or No Money Down Technique Part 1
Lease Options: Little or No Money Down Technique Part 2
Lease Purchase Investing
Options On Real Estate Investment Property
Overcome 10 Objections Sellers have to Sub2 Deals
Partnerships for Real Estate Investing
Rent to Buy Best Strategy For Current Real Estate Market
Should You Be Buying Commercial Real Estate?
Subject To Deals aka Get the Deed
The Basics of Buying and Selling with Lease Options
Using Agents to Find Lease Option Deals
Why Soft Markets are Great Markets to Invest P1
Why Soft Markets are Great Markets To Invest P2
Working with Realtors For Lease Options

Author's Products

Buying On Lease Options

Get the Deed

Making Money With Partners

Real Estate Wealth Building Arsenal

Selling on Lease Options

Working with Realtors