On this podcast episode I talk about the types of contracts you should use for wholesaling.
One of the most common questions that I get is “what type of contract should I use”. The answer is it depends. If you are buying from an entity like a bank or short sale, HUD, Fannie Mae, Freddie Mac, then you will need to use the Standard Purchase Contract for your state. In Florida it’s called the FARBAR Contract. Banks and entities will also not allow you to assign their contracts so you cannot use the words “and or assigns” on a contract if one of these entities is the seller.
However if you are buying directly from a motivated seller then you can pretty much use any contract that you want. When buying direct from sellers your contract should be:
3. have as long of an inspection period that you can get away with – the longer the better.