Writing Real Estate Offers - Making Your Real Estate Offer As A Wholesale Buyer

http://www.REIClub.com - When Making Wholesale Real Estate Offers, Here Are Some Investor Tips On Writing Up Your Real Estate Offer...

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on structuring wholesale real estate offers.

Real Estate Purchase Offers
Formula Chart - Microsoft Excel
- calculate wholesale offers
- create tables and equations - plug in numbers, easy to replicate, free tool
- 70% ARV minus profits
- repairs - taking averages of your repair estimates is a good start.

Profits for End Buyer Real Estate Investor
- How much will room will the end buyer have?
- If you take to much, not appealing enough for buyers

Contract Clauses for Real Estate Offer
- 24/7 access to the property
- Request for key - inspectors, lenders, appraisers but most importantly your Buyers can get into the property with ease.

Contingencies for Purchase Offers:
For those who don't know what contingencies are:
A contingency is a provision in a real estate contract that specifies the contract would cease to exist upon the occurrence of a certain event. So if anything is found to be an issue with the following contingencies, the contract would be null.

- Request a 15 day inspection period
-- potential deal breakers -- foundation, septic bust, pretty much any big ticket items that could destroy your investment profit.
- Third Party Approval - partner, funder, etc. -- they might catch something you didn't, always great to get a 2nd or even 3rd approval as long as it's done in a timely fashion.

- Earnest Money for Purchase Offer -- this is the sole remedy for non performance -- when people have their own money vested into a deal, they tend to take it a bit more seriously.

Earnest Money
- good faith to secure the wholesale contract
- put in as little as possible $10-$100, and $500 if a real estate agent is involved
- expiration date - usually 48 hours

Everything in writing:
- Verbal agreements do not protect you, written proof does.
- your responsibility - writing and signatures of all the people who are involved in the transaction
- real estate attorney - overview contract

Here are 5 tips on how to handle your earnest money: 1. Never give earnest money deposit directly to seller.
2. Make the EM deposit payable to a reputable third party - real estate brokerage, legal firm, escrow company or title company.
3. Verify that the third party will deposit the funds into a separately maintained trust account.
4. Obtain a receipt.
5. DO NOT authorize release of your earnest money until your transaction closes. (includes pass-throughs)

Structuring Real Estate Offers has many variables, and it will take a bit of time to fully understand the process. Just remember, as an investor making wholesale real estate offers, make sure everything that is agreed to is in writing and you have it approved by an attorney. This is the safest way to make sure your real estate investing contracts are solid, and you minimize your investment risk for every purchase offer you make.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.

http://www.youtube.com/watch?v=ch9sOqh0GfI

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[alonzomakeamillion]

Great presentation,on your video do not change a thing,I like the rapid pace that you display.If I miss something,I just review the video again,and I understand it even more.Please keep-up the excellent work you are doing,and never slow down,because then we will really miss the points.

[reiclub]

@alonzomakeamillion haha, you are officially the first person to tell me you like the pace. Thanks! I've been able to find a comfortable medium to appease all my viewers. Thanks again for your continued support!

[haley7732]

i hate you stupid ass

[reiclub]

@haley7732 - Hi Haley, thanks for your comment. Although it brought NO value to me or any one else who watches this video, I appreciate your 1 view.

[nmrmack]

Very good information but please SLOW DOWN! I'm taking notes :)

[reiclub]

@nmrmack - It's hard for to cram all this information within 5-6 minutes. I usually include the text to the video in the description, so if by any chance you missed anything you can always refer to that. Hope this helps, and thanks for watching!

[dlvmark]

Great video, please slow down.

[MrColtgordon]

yo brother your awesome... down here in San Diego just wondering if you had a video on how to make the excel spreadsheet, or a resource. I do ARV x .65 down here in San Diego but I also include repairs after I get that number although your way sounds much more proficient. please let me know, and thank you for your time and service.

[MrColtgordon]

@nmrmack or you can pause the vid, always helps me! ;-)

[dr987eam]

Great info. keep it up. 

[ALAINLMT]

u good man thank u.