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 into a real estate closing as a buyer. have you noticed
realize your profit (or loss) before you turn the doorknob to walk into your attorney’s or title company’s office at closing. The advance transaction payment is predetermined when the contract is signed between you as the buyer and the other party who is the seller.
The interpretation of these cold and harsh words is that you must recognize the importance of the real estate contract that binds the property transaction. Your contract contains implications for determining earnings in advance.
When we reach a real estate investment deal, we’re usually just looking for some pre-printed contract form that came from a real estate office or stationery store. We usually lose a lot of our closing rights to some outsider who put together the traditional jargon and processes without recognizing that we ourselves have the right to take this course. Subjecting ourselves to the legal jargon of a lawyer who may not even be a real estate investor or own more than his own home is the pattern followed by most who buy and sell real estate.
The first order of business when writing contracts is to understand that any purchase or sale of property 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 falls back on the usual convention.
But by understanding your rights as a real estate buyer or seller, you can actually INCREASE your profits on a transaction by drafting your contract. However, these settlement terms must be in writing in your contract prior to closing. Otherwise, potential profits fly out the window.
One of the most euphoric feelings I have ever experienced in this real estate investing business was walking out of closing with a check made out to me for $75,000 on a bundle of some cheap real estate! As with anyone, 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 the available options by independently choosing the wording in the content of their own purchase agreement and sales agreement. 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 rather encouragement to take advantage of an available real estate investment opportunity. This suggestion is not an encouragement to get greedy with legal rights, but to notify that bargaining is available on closing cost dictates. Sometimes trades are profitable only when these considerations are understood.