Always Have The Right Contract With Language To Protect You And Yield All Possible Profits - Street Smart Cash Flow Accelerator #10
Over the years as I've been in this business now for over 40 years and I've learned a lot of things in what to do and what not to do. I can tell you that one of the most powerful things I ever learned way back in the beginning was to have the right paperwork. And I'm not talking about a standard realtors agreement because the realtors agreement first is designed to protect the realtor, second, to protect the seller and third, to protect the buyer. What I found is that I really needed two different contracts. I needed a buying contract and I needed a selling contract. I needed one that had negotiation built into the paperwork and I needed one that had profit centers built into the paperwork. Over the years I designed one that was truly amazing and it helped a lot of my students. I've got clients in all 50 states and 16 foreign countries and they just brag about my paperwork and I say it's best in the industry and I'm very proud of that. I've worked hard to do that. I figured out what works and what doesn't. A paragraph, a phrase, a word, it can make all the difference in success in your paperwork. I put together something and it may be valuable to you and I've got a standard real estate purchase and sale agreement. One of the things I've got in there is the seller pays all closing costs and I break it down what the closing costs are. Well, of course that's negotiable, but what if they don't negotiate? You could pay for all of your cost of funds just by the seller paying all the closing costs and there's a lot more in there that can protect you. Things like when does the contract expire and what if you had the never ending contract where if a seller wasn't going to close or didn't come to the closing, you had a contract that didn't expire and there's so many other protections in there that are necessary for you. It's important because you could spend a lot of money getting ready to close on a transaction. You could have a title search done, you could have inspections done on the home, you could have a survey done, and then all of a sudden the seller doesn't show up to close. How do I know this? Yes, I have lived it. So I've learned that there's some things I've got to do to protect myself and I've got mediation and binding arbitration built in so we don't have to go through a protracted legal battle and just things to entice the seller to get themselves to the table if they changed their mind or want to change their mind. And I'm not saying that I don't give people an out, but we've got some things that can protect you from losing a lot of money. And that's really what it's designed to do. Now, my system called “Buying Volume One” and it is available for you at streetsmartinvestor.com now, under tools, you'll see what buying is all about, but it's got all of the forms, the step by step processes, the marketing, everything that we do to buy properties that I've used for many, many years and proven that it absolutely works. So check it out when you get a chance.
To watch the next part of the video go to: How and Why to Have the Seller pay all Closing Costs - https://youtu.be/qScWKVFmMug
Investors have long regarded Lou’s training, systems and forms as the best in the industry. He has been quoted as an expert by many publications including The Wall Street Journal and Smart Money Magazine.
Lou draws from his wide and varied background as a real estate investor. Having bought property since 1977, he has invested in single-family homes, apartments, hotels and developed subdivisions, as well as building and renovating homes and apartments. These experiences have given him a proving ground for the most cutting-edge concepts in the real estate investment industry today.
