The 5 Shifts You Must Take in Order to Make $10,000 to $20,000/month Flipping Houses
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1 The 5 Shifts You Must Take in Order to Make $10,000 to $20,000/month Flipping Houses by Daniel Wiafe, the House Flipping Ninja, Host of HGTV's Flipping the Heartland reality TV show, Real Estate Entrepreneur & Success Coach Learn How to Make $10,000 to $20,000 Flipping Houses at
2 CONTRACT FOR THE SALE & PURCHASE OF REAL ESTATE PARTIES: their heir(s), successors, administrators and assigns, as Seller who's address is: and their heirs, successors, administrators and assigns, as Buyer, whose mailing address is. WITNESS: That the Seller has this day sold, upon the agreements listed below, to the Buyer the real property legally described as: SUBJECT PROPERTY:, which shall also be known as Property, LEGAL DESCRIPTION: SALES PRICE: $ SUBJECT TO EXISTING MORTGAGE or FINANCING: $ TOTAL DUE TO THE SELLER: $ PAYABLE: This is a CASH transaction. Buyer pays ALL closing costs. Purchase price is NET. EXISTING MORTGAGE(S): Existing financing on subject property will be current in all payments of principal, interest, late charges and escrow amounts required by the mortgagee. Escrow balance has been calculated into the price and will transfer to the Buyer along with title. Buyer will take title subject to his/her debt. Page 1 of 4
3 CONTRACT FOR THE SALE & PURCHASE OF REAL ESTATE PARTIES: their heir(s), successors, administrators and assigns, as Seller who's address is: and their heirs, successors, administrators and assigns, as Buyer, whose mailing address is. WITNESS: That the Seller has this day sold, upon the agreements listed below, to the Buyer the real property legally described as: SUBJECT PROPERTY:, which shall also be known as Property, LEGAL DESCRIPTION: SALES PRICE: $28, SUBJECT TO EXISTING MORTGAGE or FINANCING: $ TOTAL DUE TO THE SELLER: $ PAYABLE: This is a CASH transaction. Buyer pays ALL closing costs. Purchase price is NET. EXISTING MORTGAGE(S): Existing financing on subject property will be current in all payments of principal, interest, late charges and escrow amounts required by the mortgagee. Escrow balance has been calculated into the price and will transfer to the Buyer along with title. Buyer will take title subject to his/her debt. Page 1 of 4
4 EXPENSES: Buyer pays all closing costs. RISK OF LOSS: If subject property is damaged prior to transfer of title, Buyer has the option of canceling this contract. The Seller also agrees that they shall remove all valuable items from the subject property and that the Buyer is not responsible for any lost, stolen or damaged items within the property. PRORATIONS: Real property taxes will be prorated based on the current year's tax without allowance for discounts, including homestead or other exemptions. Rents will be current and be prorated as of the date title transfers. DEFECTS: Seller warrants subject property to be free from hazardous substances and from violation of any zoning, environmental, building, health or other governmental codes or ordinances. Seller further warrants that there is no material or other known defects or facts regarding this property, which would adversely affect the value of said property. NO JUDGMENTS: Seller warrants that there are no judgments threatening the equity in subject property, and that there is no bankruptcy pending or contemplated by any titleholder. Seller will not further encumber the property and an affidavit may be recorded at Buyer s expense putting the public on notice that the closing of this contract will extinguish liens and encumbrances hereafter recorded. POSSESSION: Possession of the property, with all keys and garage door openers, will be delivered to the Buyer when title transfers. INSPECTIONS: This contract is contingent upon the Buyer s inspection and approval of the property prior to transfer of title. Seller agrees to provide access to the Buyer s representatives prior to transfer of title for inspection and repairs. ACCEPTANCE: This instrument will become a binding contract when accepted by the Seller and signed by both Buyer and Seller. If it is not accepted and signed by the Seller prior to, this contract shall be void. Page 2 of 4
5 DEPOSIT: Upon acceptance Buyer will place in escrow an earnest money deposit of ten dollars with title company which will be part of the cash paid to the Seller when title transfers. This deposit will be returned to the Buyer if title does not transfer in accordance with this agreement and said title company will close this transaction. SELLER: Agrees that the buyer may place signs and show the property immediately to funding partners upon acceptance of this contract by both parties. CLOSING: Closing will take place on or before: at, subject to a 90 day period in which the buyer/seller shall be permitted to clear any title problems. OTHER AGREEMENTS: This is a CASH transaction. Buyer pays ALL closing costs. Purchase price is NET. This contract is subject to the approval of the Buyer's partners and/or acceptable appraisal by the Buyer. In the event of the Buyer's default, the deposit shall be the sole remedy. CONTRACT IS ASSIGNABLE: This contract may be assigned by the buyer to the party of his/her choice before the closing date takes place. TIME IS OF THE ESSENCE with this agreement. Each contingency contained herein shall be satisfied according to its terms by the closing date or this contract extends to provide time for satisfaction of said contingencies. Each party shall diligently pursue the completion of this transaction. Each warranty herein made survives the closing of this transaction. Page 3 of 4
6 AGREED TO BY BUYER: On This Date AGREED TO BY SELLER: On This Date Buyer's Printed Name Seller's Printed Name Buyer's Signature Seller's Signature Buyer's Printed Name Seller's Printed Name Buyer's Signature Seller's Signature Page 4 of 4
7 ASSIGNMENT OF CONTRACT This agreement is made between, hereafter known as the Assignor and hereafter known as the Assignee, for the property located at. WHEREAS, Assignor entered into Real Estate Purchase Contract with (Seller) for the subject property. WHEREAS, Assignor wishes to assign its rights and interest in the Real Estate Purchase Contract. It is hereby agreed between Assignor and Assignee as follows: 1. The Assignee shall pay Assignor an Assignment fee in the amount of $ U.S. payable at closing of transaction between Assignee and Seller. 2. Assignor and Assignee agree to utilize the services of the closing agent designated by the Assignor 3. Buyer must close on transaction on or before the date of. 4. Assignee shall deposit $ by 5 p.m on with designated closing agent. 5. Assignor has negotiated a purchase price on the Subject Property of $. Adding the Assignment fee of $, the Assignee s total purchase price is $. 6. This assignment and/or Real Estate Purchase Contract may not be further assigned by the assignee without the consent of the assignor. 7. Assignee accepts all terms and conditions of the contract for Sale and Purchase between Assignor and Seller in its entirety. 8. This assignment is contingent on seller providing clear and marketable title to Assignee prior to the closing date. In the event that clear and marketable title cannot be obtained, Assignee shall be released from this assignment and the deposit shall be returned to the Assignee. 9. Assignee acknowledges receipt of legible copies of the original contract for sale and purchase, in its entirety including all addendums associated with this transaction. 10. Assignee acknowledges that the property will be delivered [SELECT ONE] with / without tenants in possession. 11. In the event that assignee fails to close this transaction or is in default of this agreement, the assignor shall have the right to terminate this assignment of contract and declare the assignee in default, wherein, assignor shall (a) retain the sum of $ as liquidated damages and (b) all right, title, and interest pursuant to the Real Estate Purchase Contract shall automatically revert to the assignor without notice. Page 1 of 2
8 ASSIGNMENT OF CONTRACT 12. Assignor retains the right to renegotiate the price on original contract with seller at any time up to the closing date. At closing, the newly reduced price will be reflected on settlement statement. The assignor's assignment fee shall be increased by the amount of the price reduction. Assignee s total purchase price shall remain the same. 13. Disclosures and acknowledgements: a. Seller sells property as-is with no warranty of property conditions. Assignor makes no representation to buyer, or his agents, as to the condition of the subject property. ASSIGNEE acknowledges and agrees that he or she is purchasing the property on an as-is basis and based on his or her own inspection, investigation, and evaluation thereof. ASSIGNEE is not relying upon any representations of ASSIGNOR, SELLER or SELLER S agent(s) to investigate and report on the condition of the property. Initial, b. Examples of matters as to which SELLER disclaims all warranties, representations, or guarantees (expressed, implied, or statutory, written or oral) are: including, but not limited to, roof, plumbing, electrical, appliances, sewer, soil conditions, foundation, heating, air conditioning, structural, and pool related equipment, if applicable. c. ASSIGNOR, SELLER and/or SELLER S agent do not warrant that the property meets any current City, County, State or Federal building codes, as well as the presence of any and all outstanding or pending violations against the property. ASSIGNEE assumes all responsibility to perform any inspection, investigation, and evaluation thereof, prior to the signing of this Agreement. d. ASSIGNOR and affiliated associates make no warranty, expressed or implied, regarding inspection reports or other reports provided to ASSIGNEE by ASSIGNOR or third parties concerning this property. ASSIGNEE is advised to independently verify the accuracy of all information contained in reports regarding this property. e. ASSIGNEE acknowledges they are conducting a transaction dealing directly with Assignor for the purchase of subject property. ASSIGNEE is not relying upon, or being represented by ASSIGNOR or any other Real Estate Brokerage in this transaction. 14. Additional Terms and Conditions (if applicable): [Assignee is aware that Assignor may accept backup Assignments of Contract up and until the deposit is placed with the title agent on or before the due date of ] Assignor Date Assignee: Date: Page 2 of 2
9 EXPENSES: Buyer pays all closing costs. RISK OF LOSS: If subject property is damaged prior to transfer of title, Buyer has the option of canceling this contract. The Seller also agrees that they shall remove all valuable items from the subject property and that the Buyer is not responsible for any lost, stolen or damaged items within the property. PRORATIONS: Real property taxes will be prorated based on the current year's tax without allowance for discounts, including homestead or other exemptions. Rents will be current and be prorated as of the date title transfers. DEFECTS: Seller warrants subject property to be free from hazardous substances and from violation of any zoning, environmental, building, health or other governmental codes or ordinances. Seller further warrants that there is no material or other known defects or facts regarding this property, which would adversely affect the value of said property. NO JUDGMENTS: Seller warrants that there are no judgments threatening the equity in subject property, and that there is no bankruptcy pending or contemplated by any titleholder. Seller will not further encumber the property and an affidavit may be recorded at Buyer s expense putting the public on notice that the closing of this contract will extinguish liens and encumbrances hereafter recorded. POSSESSION: Possession of the property, with all keys and garage door openers, will be delivered to the Buyer when title transfers. INSPECTIONS: This contract is contingent upon the Buyer s inspection and approval of the property prior to transfer of title. Seller agrees to provide access to the Buyer s representatives prior to transfer of title for inspection and repairs. ACCEPTANCE: This instrument will become a binding contract when accepted by the Seller and signed by both Buyer and Seller. If it is not accepted and signed by the Seller prior to, this contract shall be void. Page 2 of 4
10 DEPOSIT: Upon acceptance Buyer will place in escrow an earnest money deposit of ten dollars with title company which will be part of the cash paid to the Seller when title transfers. This deposit will be returned to the Buyer if title does not transfer in accordance with this agreement and said title company will close this transaction. SELLER: Agrees that the buyer may place signs and show the property immediately to funding partners upon acceptance of this contract by both parties. CLOSING: Closing will take place on or before: at, subject to a 90 day period in which the buyer/seller shall be permitted to clear any title problems. OTHER AGREEMENTS: This is a CASH transaction. Buyer pays ALL closing costs. Purchase price is NET. This contract is subject to the approval of the Buyer's partners and/or acceptable appraisal by the Buyer. In the event of the Buyer's default, the deposit shall be the sole remedy. CONTRACT IS ASSIGNABLE: This contract may be assigned by the buyer to the party of his/her choice before the closing date takes place. TIME IS OF THE ESSENCE with this agreement. Each contingency contained herein shall be satisfied according to its terms by the closing date or this contract extends to provide time for satisfaction of said contingencies. Each party shall diligently pursue the completion of this transaction. Each warranty herein made survives the closing of this transaction. Page 3 of 4
11 AGREED TO BY BUYER: On This Date AGREED TO BY SELLER: On This Date Buyer's Printed Name Seller's Printed Name Buyer's Signature Seller's Signature Buyer's Printed Name Seller's Printed Name Buyer's Signature Seller's Signature Page 4 of 4
12 ASSIGNMENT OF CONTRACT This agreement is made between, hereafter known as the Assignor and hereafter known as the Assignee, for the property located at. WHEREAS, Assignor entered into Real Estate Purchase Contract with (Seller) for the subject property. WHEREAS, Assignor wishes to assign its rights and interest in the Real Estate Purchase Contract. It is hereby agreed between Assignor and Assignee as follows: 1. The Assignee shall pay Assignor an Assignment fee in the amount of $ U.S. payable at closing of transaction between Assignee and Seller. 2. Assignor and Assignee agree to utilize the services of the closing agent designated by the Assignor 3. Buyer must close on transaction on or before the date of. 4. Assignee shall deposit $ by 5 p.m on with designated closing agent. 5. Assignor has negotiated a purchase price on the Subject Property of $. Adding the Assignment fee of $, the Assignee s total purchase price is $. 6. This assignment and/or Real Estate Purchase Contract may not be further assigned by the assignee without the consent of the assignor. 7. Assignee accepts all terms and conditions of the contract for Sale and Purchase between Assignor and Seller in its entirety. 8. This assignment is contingent on seller providing clear and marketable title to Assignee prior to the closing date. In the event that clear and marketable title cannot be obtained, Assignee shall be released from this assignment and the deposit shall be returned to the Assignee. 9. Assignee acknowledges receipt of legible copies of the original contract for sale and purchase, in its entirety including all addendums associated with this transaction. 10. Assignee acknowledges that the property will be delivered [SELECT ONE] with / without tenants in possession. 11. In the event that assignee fails to close this transaction or is in default of this agreement, the assignor shall have the right to terminate this assignment of contract and declare the assignee in default, wherein, assignor shall (a) retain the sum of $ as liquidated damages and (b) all right, title, and interest pursuant to the Real Estate Purchase Contract shall automatically revert to the assignor without notice. Page 1 of 2
13 ASSIGNMENT OF CONTRACT 12. Assignor retains the right to renegotiate the price on original contract with seller at any time up to the closing date. At closing, the newly reduced price will be reflected on settlement statement. The assignor's assignment fee shall be increased by the amount of the price reduction. Assignee s total purchase price shall remain the same. 13. Disclosures and acknowledgements: a. Seller sells property as-is with no warranty of property conditions. Assignor makes no representation to buyer, or his agents, as to the condition of the subject property. ASSIGNEE acknowledges and agrees that he or she is purchasing the property on an as-is basis and based on his or her own inspection, investigation, and evaluation thereof. ASSIGNEE is not relying upon any representations of ASSIGNOR, SELLER or SELLER S agent(s) to investigate and report on the condition of the property. Initial, b. Examples of matters as to which SELLER disclaims all warranties, representations, or guarantees (expressed, implied, or statutory, written or oral) are: including, but not limited to, roof, plumbing, electrical, appliances, sewer, soil conditions, foundation, heating, air conditioning, structural, and pool related equipment, if applicable. c. ASSIGNOR, SELLER and/or SELLER S agent do not warrant that the property meets any current City, County, State or Federal building codes, as well as the presence of any and all outstanding or pending violations against the property. ASSIGNEE assumes all responsibility to perform any inspection, investigation, and evaluation thereof, prior to the signing of this Agreement. d. ASSIGNOR and affiliated associates make no warranty, expressed or implied, regarding inspection reports or other reports provided to ASSIGNEE by ASSIGNOR or third parties concerning this property. ASSIGNEE is advised to independently verify the accuracy of all information contained in reports regarding this property. e. ASSIGNEE acknowledges they are conducting a transaction dealing directly with Assignor for the purchase of subject property. ASSIGNEE is not relying upon, or being represented by ASSIGNOR or any other Real Estate Brokerage in this transaction. 14. Additional Terms and Conditions (if applicable): [Assignee is aware that Assignor may accept backup Assignments of Contract up and until the deposit is placed with the title agent on or before the due date of ] Assignor Date Assignee: Date: Page 2 of 2
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