Real Estate Contracts to use with your Ron LeGrand Mentoring Program.
Welcome! On this page, you’ll get access to & instruction on how to use the real estate Contracts you’ll need to do your deals. These are the agreements you’ll need to get properties under contract to buy.
You may start by reading this document to learn a few cool things…
Getting Started: What Docs to Use When? A Quick Guide For the New Investor (Click that link to read some instructions I wrote for you)
Use These When BUYING:
I suggest you use Google Docs! Get Online File Access/Download Everything via Google Drive This is my personal favorite & recommended way to do it. With this, you’ll be able to not only access and edit the contracts online, you’ll also be able to share access to the contracts with me so that I may help edit them properly. Fast, quick, easy. Done. You’ll need a Gmail/Google account. So first, login to your Gmail, then click…
[thrive_link color=’red’ link=’https://drive.google.com/drive/folders/0ByLFfvQmV8jUV3duVWhoS0F1R2M?resourcekey=0-V8X5sCjdOml6YVYMYcPQfA&usp=sharing’ target=’_blank’ size=’big’ align=’aligncenter’]>Buying Contracts (Google Docs)<[/thrive_link]
New to Google Docs? I wrote THIS handy guide! I even include pictures to make it super simple for you:
[thrive_link color=’blue’ link=’https://docs.google.com/document/d/1aZLaIUyh9lTwyVFfwncFghC6pdWexHvSEXLl5Uh8iT0/edit?usp=sharing‘ target=’_blank’ size=’medium’ align=’aligncenter’]Read These Instructions[/thrive_link]
Quick Instructions to create/edit/share contracts:
- Make sure you’re logged into your Google (Gmail) account.
- Click on the file you want to use. If you want to write up a CONTRACT to purchase a house, you’ll click on:“7a. Purchase & Sales Agreement (OPEN THIS!)”
- When that opens up, follow the instructions on the first page. (Click the ‘Make a copy’ button) The contract comes right after that.
Going out to a house to meet with a Seller? In a hurry? Here’s the pack of documents you’ll need, all downloadable directly from this Google Drive folder as individual PDF Files!
- Just Want it the Quick & Easy Way? Ok…
Is that too confusing for you? Do you just want the PDF files so you can download, print & go? Fine. I have you covered. Here… Click these links (or right-click & ‘save as’ to download).You’ll be able to download these as pdf files, print them out, and take them with you. Remember, you always want to bring 2 blank copies of EACH of these docs:
- Download the Purchase & Sales Agreement as a PDF (click that)
- Download the Authorization to Release Information as a PDF (click that)
- Download the Lease Purchase Agreement as a PDF (click that)
2. Or you can just click on the links below to download the files individually: Use these download links to get what you need, one file at a time. Also helps if you’re coming back here & just need to grab things a-la-carte.
Docs Needed For Your Standard Buying Pack:
- Purchase and Sales Agreement: This is the MAIN agreement we use when buying. It gives you the RIGHT but NOT the OBLIGATION to buy. A good thing.
Purchase & Sales Agreement (Doc)Purchase & Sales Agreement (PDF)
- Authorization to Release Information (UPDATED 17 Dec 2019): Use this only when the seller has a loan on the property. It gives you permission to talk to the bank on their behalf. You’ll need one copy for each loan. Ex: If they have a 1st and a 2nd lien, you’ll need the sellers to fill out TWO of these. If they own the property free & clear, you won’t need it.
Authorization to Release Information (Word Doc) Authorization to Release Information (PDF)Instructions – Authorization to Release Info Simple instructions on how to fill this out. Example given: Authorization to Release Information-Instructions (Doc)
- Lease with Option Agreement (Buying) Use this when they don’t want/agree to sell, but will let you lease purchase their property. This is the SHORT agreement we use when buying with a Lease Purchase. It’s written in your favor.
Lease with Option Agreement (Doc) Lease with Option Agreement (PDF)
BONUS! Optional OPTION Agreements:
Sometimes a seller just doesn’t want to sell unless they get all cash for their property, and we can’t buy unless that cash price is WMAO (Wholesale Maximum Allowable Offer: ARV-30%-Repairs-Your Fee).For houses with an ARV over $300,000, the formula is: ARV-20%-Repairs-Your Fee.However, if they’re willing to give up SOME equity and the property is in great shape, we can still negotiate an OPTION Agreement with them. This allows us to buy their property at a decent price, pay all cash, and still make money. You’ll just get it under Option, then find someone who wants to buy it for all cash and sell it to them for a higher price. You’ll get paid in the middle (on the HUD Settlement Statement), but the Deed will go from the Seller directly to the Buyer (to avoid any chain of title issues).Here are a couple of different Option Agreements for you to download and use. NOTE: These both do the same thing, they’re just worded a little bit differently (obtained from the Gold Club):
a. Option Agreement to Buy #1 b. Option Agreement to Buy #2
Process To Present a Contract to a Seller, Step by Step:
- Get ORAL agreement with seller. Either on the phone or in person.
- Write up a contract and Present an offer in writing (get comfortable doing this asap!). You can either do this ahead of time (from home/office), or have a blank Purchase & Sales (or Lease Purchase) Agreement with you & fill it out in front of them.
- They sign & you sign.
- Congratulations! You now have a signed contract! This is when the fun REALLY begins, because you’re officially “in the game!”
TIP: Don’t be afraid to submit/present an agreement. Don’t be afraid to get it signed. REMEMBER: Getting a signed contract to buy a property gives you the RIGHT but NOT the Obligation to buy! Also remember that the more offers you make, the more $$ you make!
How To Submit a Contract to Me For Evaluation (For your first few deals):
You Now Have THREE Choices:
- The OLD Way: You can download, print out, write on, and then scan & email (or take a picture) of the Purchase & Sales (or Lease Purchase) Agreement after you’ve written it out the way you think you should.
- The NEWER Way: You can use the Google Doc I’ve created, and edit everything online, then share it with me & I’ll be able to look at it and edit it in real time with you and get back to you faster & easier for both of us.
- The NEWEST Way: You can use the powerful new tool I’ve created for you: The Contract Generator
As you might guess, I MUCH prefer the latter – because it’s just easier for both of us. But feel free to pick the one you want.
Login to your Google (Gmail) Account, then…Click Here to get access to the BUYING Contracts as GOOGLE DOCS.
UPDATED – 2021: The Docs you’re looking for are in the obvious folders on that page.
Bonus! Wholesaling Section
Looking to possibly WHOLESALE a Deal? Great! Wholesaling is not only an excellent way to get started in the real estate investing business, but you should always have wholesaling as a possible tool in your arsenal.
I’m actually including TWO different Wholesaling Agreements here for you!One is short, and one is long. Grab them both if you like & use the one you want.
Very Quick Reminder of How to Wholesale:1. First, you get a property under contract with a seller. Make sure you get it for a LOW Cash price. Use the WMAO (Wholesale Maximum Allowable Offer) Formula: ARV x 70% – Repairs = MAO – Your FEE (~$10k) = WMAO Ex: ARV: $100k, Repairs: $20k. MAO = $50k; WMAO = $40k
NOTE: If the ARV of a property is over $300,000, then figure your MAO as: ARV x 80% -Repairs = MAO – Your Fee = WMAO.
2. After getting the property under contract with a Purchase and Sales Agreement, you’ll typically have a couple options on how to sell your contract to get paid. Those options are: 1. Assignment of Contract, and 2. Double Close. The Assignment of Contract is used when your FEE is not so high that your buyer won’t be happy about it. It’s a simpler and faster agreement to use. Truly, no money nor credit is needed here!The Double Close is used when your assignment fee is high. There’s more work for everyone, and there will be two sets of closing costs. But you’re making more profit, so…NOTE: If you truly want to do a double close, I have some secrets to share that will help save a lot of those fees.NOTE: If you’re buying from an institution like a bank (or HUD), you’ll definitely need to do a double close, because assignments are not allowed by banks.
Wholesaling is the Easiest & Fastest Way of Making Money in Real Estate. You don’t need money or credit. This is a great starting point for most investors.It’s also a very small segment of real estate investing, as there are typically fewer wholesaling deals available (depending on the market). Therefore, you’ll most likely do fewer deals, as sellers need to have a lot of equity so they can sell for a low price, and be motivated to do so.
Extra Bonus: Ron Teaches Contracts Videos:
RON shows you more about the Purchase & Sales Agreement:
[responsive_video type=’youtube’ hide_related=’1′ hide_logo=’1′ hide_controls=’0′ hide_title=’1′ hide_fullscreen=’0′ autoplay=’0′]https://www.youtube.com/watch?v=uYyOClfDato[/responsive_video]
Ron covers the LEASE PURCHASE AGREEMENT:
[responsive_video type=’youtube’ hide_related=’1′ hide_logo=’1′ hide_controls=’0′ hide_title=’1′ hide_fullscreen=’0′ autoplay=’0′]https://www.youtube.com/watch?v=Is0ONEsXzwo[/responsive_video]
One more video of Ron Presenting Contracts to Buy & Sell:
[responsive_video type=’youtube’ hide_related=’1′ hide_logo=’1′ hide_controls=’0′ hide_title=’1′ hide_fullscreen=’0′ autoplay=’0′]https://www.youtube.com/watch?v=FeR4TPR4230[/responsive_video]
Ready for the docs to use when you’re SELLING? Here you go:
[thrive_link color=’green’ link=’https://yourrealestatecourse.com/contracts-selling/’ target=’_blank’ size=’big’ align=’aligncenter’]>>Contracts For SELLING<<[/thrive_link]