In this episode of The Real Estate Ride, we break down everything you need to know about preparing a strong purchasing contract, whether you’re buying retail, wholesaling, or working with an agent. With decades of real estate experience across multiple states, we’ve structured hundreds of contracts, and we’re sharing the best strategies to ensure your offer stands out and gets accepted.

We cover the essential components of a contract, the role of earnest money deposits, inspection clauses, and key contingencies that protect your investment. You’ll also learn common contract pitfalls that can cost you the deal and how to avoid them. If you’re looking to sharpen your contract negotiation skills and gain the confidence to navigate real estate transactions like a pro, this episode is for you.

Episode Highlights

[0:00] - Introduction

[1:00] - Overview of different purchase contracts: retail, wholesale, and investor-friendly agreements

[4:15] - Why real estate agents use board-approved contracts and what investors should know

[5:35] - When to use a simple one-page contract instead of a standard multi-page agreement

[8:45] - Earnest money deposits: how much to put down and when you may not need one

[10:30] - How to structure your offer to stand out in a competitive market

[12:10] - Why hard money loans are not considered cash and how that impacts your contract

[14:45] - The importance of inspection clauses and how to use them strategically

[16:00] - How to renegotiate price after an inspection uncovers unexpected repairs

[18:50] - What to watch for when buying from wholesalers and reviewing assignment contracts

[20:10] - How to set a realistic closing timeline to avoid contract delays and penalties

[22:00] - The risks of sending earnest money directly to sellers or wholesalers and how to protect yourself

Key Takeaways

1. A purchase contract doesn’t have to be complex. A simple one-page contract with key details (property address, price, and closing date) is often sufficient, especially in direct-to-seller deals.

2. Earnest money can strengthen your offer. While not always required, a deposit can make your offer more competitive, especially in multiple-offer situations.

3. Hard money and private loans are not cash. Listing them as cash on a contract can lead to major issues at closing and even deal cancellations.

4. Inspection clauses provide leverage. Even if you waive an inspection contingency, you can still conduct an inspection and renegotiate based on findings.

5. Closing timelines should be realistic. Giving yourself extra time beyond what lenders or title companies promise can prevent unnecessary contract extensions or penalties.

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