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Contract Reviews

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Transcript

When looking to invest in property, the contractor sell is usually that final step, not final step of the purchasing journey but final step of making a decision that you’re really going to go with this one until other checks and things come up. But at the contract of sale stage, there’s three really really important things you should consider.

Number one has actually to do with the time. And by time I mean how fast are you going to get that back to the other party depending on the heat of the market that could really impact you because two or three people might be sitting on offers, two or three people might be sitting in a position to make an offer but you don’t in the right time or the review doesn’t get completed at the right time and the lawyer takes too long to go back and forth and review and check certain things and all of a sudden you’ve missed out on the deal.

Number two is what you are negotiating on before you even get the contract in your head. So sales agents can sometimes provide a contract straightaway. Give us your best offer. An expression of interest form with some insights on the offer but many actually like to operate in a way where they have had discussions with you, have really understood the number, the offer at hand and then there’s a sense of comfortability of saying that this deal may or very likely go through. So if you’re not doing the right type of negotiations before you even get the contract you may have too many surprises come back when you start to negotiate it and so having that negotiation before can really create a sense of expectation. So there isn’t surprises. And you have more of a chance of your actual offer being accepted.

Number three is the end review. So you’ve major negotiation of conditions and numbers you get your contract. It’s reviewed fairly quickly. You’re about to sign and send back but your lawyer picks up a few options. Now the lawyers and conveyances who do their best job are likely the ones who are going to give you the most things to go and change and challenge and that’s a good thing. But as an investor I’ve seen so many people miss out on deals solely because they took all the advice. Remember advice is for you to decide what to do on. Advice isn’t for you to go and just act on it all because when a lawyer is working in your best interest they are going to present you all the different data points all the things in the contract all the things that I reviewed to say.

These are things you should check out but you need to make a decision of conscious risk-taking. If you take on everything you might scare the vendor away and all of a sudden they’re like, ”Yeah. This isn’t for us the person who was negotiating maybe even two kale lower is just better conditions”.

So from that can from that aspect. You don’t want to have yourself in a position where this after contract negotiation you go on and take everything. In some cases people will have conditions on the deposit to split into multiple portions. Now you imagine where that leaves you from a certainty as a vendor to go – all they only want to put $1,000 down. They might be in a space to may be back out of this deal and take it, later and I’m just not feeling confident but then on other cases someone may go “I will give you a bigger deposit but then we’ll negotiate a clause to say if this comes up we will then drop out like a piston building. Or finance now with just a simple movement and deposit.

Although it’s going to end the same dollar value anyway, they felt more comfortable as a vendor and as a sales agent. So when thinking of all these different things that come up consider the advice that’s coming in but really think of how the other side will feel, how others who may be competing with you and your best interest all the same time and you’ll find it might not be 10 out of the ten points that you need to take. It might be five six eight. Maybe it is all 10 because the contract that came to you really needed that much protection. So we’re looking to invest and especially contract reviews consider those three things just to recap the speed at which you can get it and get it back. Number two is a negotiations that you have before to minimize the surprises and to know that there’s a higher chance of you securing it based on what you like. And the number three is remember the reviews coming back as advice but you need to find The Sweet Spot of getting that deal taking some and protecting yourself and also not shocking the windows, which is much.

That’s it from us here at InvestorKit, the Experts in wealth creation helping you take action.

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