Today’s tip is number 14 to assure your contract is binding. Always give consideration. Now let me explain what that means. Contracts in order to be valid must have certain things in there and of course you’ve got to have the parties in there. You’ve got to have the subject matter and you’ve got to have some kind of consideration between the two parties that binds the contract. So here’s what I recommend and it’s something that I’ve been teaching my clients to do for many, many years. And simply it’s when your PR, your seller goes ahead and signs the purchase and sale agreement. Then you go ahead and bind that by bringing a check with you. You make the check payable to the seller, whomever’s signing that contract or sellers, if there’s two of them or more, make the check payable to all of them, have them sign it on the back.
So turn it over, have him sign it on the back and go ahead and cash the check. Now I’m not recommending you do that 500 or a thousand dollars that you might have heard or even more that real estate agents typically tell you in order to have a binding contract, they want to have a big fat earnest money. What I’ve done for years and been teaching my clients to do is $10 $10 is all you really need to bind a contract. Really, essentially, it could be a dollar, but we like the $10 because it’s even more solid, so they’re going to sign the check on the back.
They’re going to hand you back the check, you’re going to hand them the $10 and boom, we have just bound that contract. Now you keep that check that you just cash, put it in your folder and now you’ve got evidence that you did give them consideration. One of the ways that sellers sometimes use to get out of a contract is to say there was never any consideration. Well, this is proof that there has been consideration. I hope you enjoy this and you’ll use it. Know that this will make a difference for you and your profits. I’d love to share more of my profitable tips with you.