Use this guide to walk the seller through the contract simply and clearly.
The Setup & Page 1
"Ok, [SellerName], I'm just gonna give you a quick overview as we go through the document together. The first page contains all the specific details for your property and what we just agreed to. You just need to initial the bottom of this page. The second page covers the standard disclosures and your final signature."
Page 2 Breakdown
2. Purchase and Sale"Very simply, you are agreeing to sell the property, and we are accepting it. The earnest money we discussed will be credited toward the purchase price when we close."
3. Title"This states that when the title company issues their report, any existing debts or encumbrances on the title need to be cleared before closing. Usually, that just gets paid right out of your proceeds at the end."
4 & 5. Inspection & Earnest Money"We have our agreed-upon inspection period. We just need reasonable access to the property, and if we need to cancel during this time, our earnest money is fully refunded without needing extra paperwork from you."
6. Lead-Based Paint"If the house was built before 1978, we need a lead-based paint disclosure, but we are officially waiving our 10-day inspection period for lead testing to make things faster."
7. As-Is Purchase"We are buying the property completely 'AS IS'. Whatever condition its in when we do our walkthrough is how we expect to receive it at closing, so you don't need to do a single repair."
8. Escrow & Costs"Things like property taxes and rents are prorated up to the day we close, so you don't pay for days you don't own it. Also, if there are any weird title or probate delays out of our control, this allows the closing to extend automatically a few extra days so we can make sure we get you paid without a hiccup."
9. Remedies"If there's ever a miscommunication or either of us misses a deadline, we both get a 10-day grace period to easily get things back on track. If for any reason we aren't able to move forward, you get to keep our earnest money deposit as your guarantee."
10 & 11. Oral Changes & Notices"This just means whatever we agree to in writing is what matters. If we need to change anything, no problem, we just have to put it in writing. All official notices are effective as soon as they are received via mail or email."
12. Miscellaneous Disclosures
- 12.1 & 12.2: Our specific terms control the agreement, and we can assign this contract to another one of our LLCs or partners without needing more paperwork on your part.
- 12.3: We have the right to market our interest in this contract. This helps get the exposure we need to guarantee your exit.
- 12.4 & 12.5: Time is of the essence, meaning we both agree to handle title requests quickly, and this contract is governed by the laws of the state where your property is located.
- 12.6 & 12.7: We can record a memorandum, which is just a public notice to other title companies that we have a valid contract, and electronic signatures are perfectly fine.
- 12.8: Finally, this is our full disclosure acknowledging that we are buying this at a wholesale price to potentially make a profit, and that you fully understand the terms. Below that is just your info, where you sign and select today's date.
Next Steps (Post-Signature)
The Handoff
"Alright [SellerName], my system is showing the signature just came through. Everything looks good. Congratulations on getting this headache off your plate today. Let me walk you through exactly what happens over the next 24 to 48 hours so you aren't left in the dark.
First, I am handing your file over to Alejandra, my lead Transaction Coordinator. She is going to be your primary point of contact moving forward. She will be the one opening escrow with the title company first thing tomorrow morning, and she'll send you an introductory email so you have her contact info.
The title company will start doing their background checks on the property to make sure there are no surprise liens or city code violations. That usually takes a week or two. While they are doing that, we need to complete our side of the due diligence.
As we discussed in the agreement, Alejandra needs to send my project manager or me out there to take some photos, verify the layout, and finalize the repair estimates we talked about. It usually only takes about 15 to 20 minutes. Are you generally better with mornings or afternoons for us to swing by?"
Objection: "The house is a total mess right now."
"Please do not clean a single thing for us. Remember, I am buying this house 100% as-is. My guys are used to seeing construction zones, hoarding situations, and tenant messes. We only care about the 'bones' of the house—the roof, the AC, the foundation. We don't care about the laundry on the floor. Can we just knock this out tomorrow afternoon so we can get to the closing table faster?"
Objection: "Can I just send you some pictures on my phone instead?"
"I appreciate that, and if you have pictures, definitely send them to Alejandra! But my capital partners require my actual project manager to lay eyes on the foundation and the electrical panel before they wire the funds to the title company. It’s completely non-intrusive. What day this week works best for you to just let him do a quick 15-minute walk?"
Objection: "I don't have a set time yet."
"No problem, check your schedule tonight. Alejandra is going to call you tomorrow at exactly 10:00 AM to lock in a time for the walkthrough. Please make sure you answer so we don't delay your closing date!"