Today is tip number 10. Always have the right contract with language to protect you and yield all the process possible profits available. Well over the years, of course, 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. And 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 bine contract and I needed a selling contract and I needed one that had negotiation built into the paperwork and I needed one that had profit centers built into the paperwork.
And so over the years I designed one that was truly amazing and it’s helped a lot of my students. You know, I’ve got clients in all 50 states and 16 foreign countries and they just brag about my paperwork and I say it’s a best in the industry and I’m very proud of that. I’ve worked hard to do that. A figured out what works and what doesn’t. You know, a paragraph, a phrase, a word, it can make all the difference in success in your paperwork.
So I put together something and it may be valuable to you and I’ve got a standard real estate purchase and sale agreement. Now 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, this is buying volume one and it is available for you at street smart, investor.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. I hope this has been enjoyable for you. I hope you will use it. I know that it will make a difference in your profits.