Dallas-Fort Worth Real Estate Investor Club

Newbie advice on contracts...will buy you coffee

  • 24 Aug 2015 11:07 AM
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    Message # 3493554
    Deleted user

    Good morning everyone.

    My wife and I are newbies here and we need advice on contracts. We currently have our eyes on 2 properties in town and are wanting to wholesale them. We have done a ton of research and are all the way to the point of pulling the trigger but would really feel better about it if someone could confirm whether or not the contracts we are using will suffice as well as confirm the actual process with us. 

    I will buy coffee for the person willing to sit down for 30 minutes or so to discuss this. Time is of the essence!

    Thank you and have a great day.
  • 24 Aug 2015 7:00 PM
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    Reply # 3494231 on 3493554
    Robin Carriger (Administrator)

    In my humble opinion, if you're buying/selling existing houses, duplexes and/or fourplexes, you should only use TREC's One to Four Family Residential Contract (Resale) and its associated addenda.

    You can click here to access the TREC web page for Contract Forms, Addenda, Notices.

    Thanks,

    Robin
  • 25 Aug 2015 6:58 AM
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    Reply # 3495071 on 3493554
    Tim Cook

    Justin

    I agree with Robin on using the TREC One To Four Family contract.  I've used many different contracts over the years but the TREC form has some protections built into it as long as you fill it out correctly and comply with what is written.  Also be sure to fill out the Special Provisions para 11 clearly for anything you have agreed too with the seller that is not written elsewhere in the contract.

    Good luck.

    Tim
  • 25 Aug 2015 7:30 AM
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    Reply # 3495122 on 3493554
    Deleted user

    Tim and Robin are 100% correct. The Trec contract is a work of art and above all is the standard. 
  • 25 Aug 2015 7:56 AM
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    Reply # 3495136 on 3493554
    Robin Carriger (Administrator)

    Justin,

    Give me a call if you have any questions at 817-300-1132.  Also, we have a Contract Class video you can order in our REI Store that covers the TREC contract and many of its most pertinent addenda.  The Wholesale Real Estate Investing Home Study Course is also available via the REI Store.

    Thanks,

    Robin
  • 25 Aug 2015 5:54 PM
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    Reply # 3496145 on 3493554
    Howard Cox

    Justin,

    Since you are a licensed agent you MUST use the TAR/TREC contract. Additionally, you MUST prepare a BPO or CMA for the seller if you are the purchaser even if you assign the contract and you must provide the seller with the IBS form. Licensed agents have a much greater responsibility to sellers than do individual buyers. Please consult with your sponsoring broker as your license and theirs are in jeopardy if you run afoul of TRELA requirements.

    Howard

    Last modified: 26 Aug 2015 8:46 AM | Howard Cox
  • 25 Aug 2015 9:44 PM
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    Reply # 3496336 on 3493554
    Deleted user

    Thank you everyone for the amazing advice. 

    @Robin. As soon as we get this business off the ground and can afford it, we will be attending meetings. 3 babies, 1 income, and a new business equals no extra spending for a while.
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