Posted by Alex SC on December 21, 2009 at 08:22:04:
DJ
How are you.Andrews really…Yes things are good here in SC.I am traveling to California alot lately. I am speaking on cash flow rentals at a seminar once a month for real estate investors.So things good, busy but good.
Not sure about Columbia but I am looking into it…
I focus on Rock hill and Greenville in SC.Other markets we are just selling to cash buyers Memphis Tenn,North port,Ft Meyers ,Sarasota Florida…
Posted by Sam Rosario on December 12, 2009 at 13:44:59:
I would like to know if an Option Contract and/ a Purchase Sales Agreement Contract are the same thing? If not… what is the use of each individual form?
which forms are most predominantly used when conducting kwikflips with propery Re-Hab investors?
I undertand I must locate a property with re-Hab potential, contact the owner/motivated seller, have them sign a contract (which one?),and have them accept my $10. earnest money
and then I will need to use which Contract to pass the property on to the Re-Hab investor? And what other contract to seal a deal between Re-Hab investor and myself?
Posted by John Merchant on December 13, 2009 at 10:37:57:
As one w lots of deep-seated skepticism about gurus of all stripes, and being on the tight (OK, down-right cheap!)side, I’d recommend anybody just starting out in this area to find and corner two or three long-time RE Brokers so some coffee chat time.
I’ve bought gurus’ courses in the past only to find that I actually learned more from somebody in that geo area who knew more about the topic, was honest w their knowledge and opinions and was happy to share their wisdom w anybody asking.
Sedona is wrong in my opinion - Posted by thutch fl
Posted by thutch fl on December 13, 2009 at 09:07:24:
An option contract is a unilateral contract. It means only the seller has
to perform, you have the option not to perform. A purchase and sales
contract is a bilateral contract, meaning both buyer and seller must
perform.
I would say a purchase contract should be used if you have a great
deal that you know will be able to be sold to another investor. If it is a
deal that is right on the fence, then sometimes I use an option
contract.
With the regular contract you use the assignment of contract, with the
option you use an assignment of option to pass on the eventual
contract.
I don’t think you need a guru at all for the sake of using contracts, you
can use your states approved realtor contract as a starting point. I
don’t like mine in Florida since it is so long. I use a simple 3/4 page
contract, knowing that I will let anyone out of the contract if they want
out. You can email me and I will send you a copy of my generic
contract and assignment of contract. They may not be legal in your
state so send it to a title company or escrow and ask if there is
anything missing.
You may want to use a “Guru” to learn this business, but if there is a
Investor Group in your area go there first to learn.
Posted by SedonaSam on December 12, 2009 at 15:41:07:
Sam,
Before you jump in, you need to know about the water or you’ll drown.
Knowing your contracts very well is VITAL to your success.
There are many decent gurus around that have their various
techniques. Google them and select a couple. Then come back and
get some opinions on whom you have selected. Then proceed. Good
luck to you.
Posted by Sam Rosario on December 13, 2009 at 15:52:14:
Thank you John for your input; now I still have one
question since I prefer to speak in English instead of
parables. Are you saying I should have lunch or coffee
with a RE broker, and pick his brain if I want to learn
what each different contract is used for? This sounds
a bit time consuming wouldn’t it be great and easier if
I could just get a strait answer from online? Somebody
has to know the truth!
Posted by Rick Ewens on December 13, 2009 at 15:24:45:
As always it is the action part of the equation that matters. It doesnt matter where you get the knowledge it is all about the plan of action and execution. It is unfortunate that most people buy great materials that never produce any action other than collecting dust in the closet.
Successful Investors pass on Info for free - Posted by DJ-nyc
Posted by DJ-nyc on December 13, 2009 at 12:20:06:
Help pull somebody else up. There is joy in doing so.
I like reading books and Networking with established Investors helps me. When I read a book. It is like I am having a one-way conversation with an Experienced Investor. I suggest reading and doing.
Thanks,
DJ-nyc
Posted by Chi Ming on December 15, 2009 at 22:39:16:
I would add that rather than going through gurus, which can cost a lot of $$$ with little to show for it if you choose the wrong ones, an investment group or even googling the different type of contracts and reading them would be the most cost effective in terms of time and money.
Posted by Sam Rosario on December 12, 2009 at 18:51:21:
Awesome advice Sam, truly appreciated, I love
constructive criticism it helps me build one brick at a
time, and yet still helps me to build a solid structure
also. I have been asking everywhere but still don’t
get a strait answer. it’s always in parables. is there
a specific course to teach me what contracts should and
could be used for particular and not so particular
instances?
Thank you so so much
Who knows local situation best? - Posted by John Merchant
Posted by John Merchant on December 13, 2009 at 18:02:45:
“Somebody has to know the truth!”
So is the “guru”, who lives 6 states away and has made his/her living for last 15 years selling CDs, books, etc. going to know more about real deals in your state and locale than the sharp guy/gal who’s made his/her living there for last umpteen years?
Or know more about the turns and quirks in your state law than the guy/gal who lives with it daily?
e.g. asking some CA guru about current TX L/O law and how to work with it…no way that guru in CA is going to know as much as the on-the-scene TX REI who has read and re-read and now works with that law daily.
And most often there’s no one “truth” but just opinions and market knowledge formed from lots of on-the-ground experience.
If you’re looking for something quick, then you go ahead and spend your bucks and do what that guru says and you’ll get some “quick” but probably sad and painful experience.
An example that pops to mind is like telling somebody who’s never used a knife that bigger is better and you can get more force by cutting toward yourself. That listener is going to get some “quick” but likely painful experience.
Posted by michaela-CA on December 13, 2009 at 16:23:58:
Sam,
there are no real short cuts, if you want to learn real estate. Your question shows that you don’t even know the basics, so you need to be willing to put in some time to learn and not just expect everything to get handed to you.
It’s not about answering your question, but about you actually understanding. And your response here seems to suggest that you don’t know enough to put it all together. it’s not all A+B=C . There are many, many variations of the different techniques and talking to others who are doing it is a great way to learn. And if it takes some time and paying for their lunch, then it can be money and time well spent.
Posted by Herbster on December 12, 2009 at 21:51:09:
SedonaSam gave some good advice, you should take a course before you dive in the water. There are many but I can’t say here. Generally the Option is best when buying from the homeowner. Use the Purchase contract for REO’s, Hud home,and foreclosures. Then follow with an assignment form or release. There is just to much say without re-writing a book. Good Luck. Herbster
PS you may find some articles here on wholesaling.
Posted by DJ-nyc on December 13, 2009 at 21:25:21:
Thanks John. I’m not limited to NYC; that where I was born and raised. Yeah, its a Tough town. Especially for Landlords. I like reading books and Real Estate Investment clubs.
Posted by Alex SC on December 15, 2009 at 02:27:28:
Never hurts to find out whats is and is not working in different market.I am always reading some thing or net working with other investors.Trying to always continue to educate my self in a few select areas of real estate.
