Real estate investment contracts on toilet paper
Even if your real estate contract has been written on toilet paper, it is valid.
The content of your real estate investment contract is what is important.
Your financial destiny in real estate investing is sealed BEFORE you enter a real estate closing as a buyer. You have settled in
Realize your profit (or loss) before turning the doorknob to enter your attorney’s office or title company at closing time. The advance payment of the transaction is predetermined when the contract is signed between you as the buyer and the other party that is the seller.
The interpretation of these cold and harsh words is that you must recognize the importance of the real estate contract that ties the property transaction together. Your contract contains implications for determining earnings in advance.
When we come to a real estate investment deal, we typically just look for a pre-printed contract form that comes from a real estate office or stationery store. Usually we lose many of our closing rights to some stranger who put together the jargon and traditional processes without acknowledging that we ourselves have the right to set this course. Submitting to the legal jargon of an attorney who is not even a real estate investor or owns more than his own home is the pattern followed by most of those who buy and sell real estate.
The first order of business when writing contracts is to understand that any property purchase or sale is negotiable. While the payment of certain closing costs may be customary or traditional for the buyer and seller, we are not bound by this protocol. With no different specification in your contract to dictate your personal address, the closing agent simply goes to the usual convention.
But by understanding your rights as a buyer or seller of real estate, you can actually INCREASE your profit on a transaction depending on the wording of your contract. However, these settlement terms must be in writing in your contract prior to closing. Otherwise, the potential benefits fly out the window.
One of the most euphoric feelings I have ever experienced in this real estate investment business was coming out of a closing with a check payable to me for $ 75,000 on a bundle of some cheap real estate! Like anyone else, he had a use for that cash! But those earnings were dictated in my special personal contract before closing.
Much more cash at closing is available to real estate investors who take control of available options by independently choosing the wording in the content of their own purchase and sale contract. This option is readily available to the real estate investment professional who understands these rights and applies them in the construction of a personal contract.
The suggestion in this article is not legal advice but an encouragement to take advantage of an available opportunity in real estate investing. This suggestion is not an encouragement to get greedy with legal rights, but to notify that bargaining is available on the dictates of closing costs. Sometimes transactions are profitable only when these considerations are understood.