EPISODE 012: Understanding Contracts As An Investor
Categories: Strategy & Tips
Description & Show Notes: In this episode, we look at various types of contracts you may come across as you get started and grow as an Investor. We start with basic Purchase & Sale Contracts, and how you can use an Addendum to keep things clear as the deal evolves. Beyond those basics, we also look at Right of First Refusal, Pre-Sale Contracts, Options, and my Favorite: Lease Options. I also explain the concept of "Hard Money", in terms of the stages of a contract, but NOT in terms of a "Hard Money Lender", which I definitely DON'T recommend using.
In the Tips & Takeaways Section, I'll give you 3 "real life" examples of Lease Option deals I did in Auburn, with the prices, rents, and addresses so you can drive by or look them up on Google Maps. The point of the Tips & Takeaways section is that you need to understand there is a difference between owning a property and controlling it, and then using the right method for to accomplish your goals with a particular property.
You may never use these more exotic types of contracts to build your Real Estate holdings, but just in case you need them they can be very valuable things to have in your dealmaker's toolbox.