Even if your real estate contract was written on toilet paper, it is valid.
The content of your real estate investment contract is what matters.
Your financial fate in real estate investing is sealed BEFORE you embark on a real estate closing as a buyer. You put in
lock in your profit (or loss) before turning the doorknob to enter your lawyer’s or title company’s office at closing time. The payment of the transaction in advance is predetermined when the contract is signed between you as the buyer and the other party who is the seller.
The interpretation of these cold and harsh words is that you must recognize the importance of the real estate contract that binds the real estate transaction. Your contract contains implications for determining profits in advance.
When entering into a real estate investment deal, we usually look for a pre-printed contract form from a real estate agency or stationery store. We usually lose many of our fencing rights to an outsider who has set up the traditional lingo and processes without recognizing that we ourselves have the right to charter that course. Submitting to the legal jargon of a lawyer who may not even be a real estate investor or own more than his own home is the model followed by most who buy and sell real estate.
The first thing to do in drafting contracts is to understand that any sale or purchase of property is negotiable. Although the payment of certain closing costs may be customary or traditional for both buyer and seller, we are not bound by this protocol. With no different specification in your contract to dictate your personal direction, the closing agent simply resorts to the usual convention.
But by understanding your rights as a buyer or seller of real estate, you can actually INCREASE your profits on a transaction through the wording of your contract. However, these payment terms must be in writing on your contract before closing. Otherwise, the potential profits fly out the window.
One of the most euphoric feelings I have ever had in this business of real estate investing was walking out of a fence with a check in my name for $75,000 on a bunch of some cheap real estate properties! Like everyone else, I had a use for this money! But these profits were dictated on my special personal contract before closing.
Much more cash at closing is available to real estate investors who take control of the options available by independently choosing the wording within the content of their own purchase and sale agreement. This choice is readily available to the real estate investment professional who understands these rights and applies them in constructing a personal contract.
The suggestion in this article is not legal advice but an encouragement to take advantage of an opportunity available in real estate investing. This suggestion is not an encouragement to become greedy for legal rights, but to notify that negotiation is available on the dictates of closing costs. Sometimes trades are only profitable when these considerations are understood.