BUYING EXAMPLE #2 All Cash Purchase

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1 BUYING EXAMPLE #2 All Cash Purchase Sellers Script: $ 140,000 ARV $ 95,000 Asking Price $ 40,000 Owe $ 20,000 Repairs (if retailing) $ 600 Monthly Payments PITI (Current) Inherited Why Selling Offer/Purchase: $ 71,000 All Cash (ARV x.65 minus Repairs) $ 980 Monthly Payment Interest only (T & I $300) (Private Lender 12% Int. Only on $98,000) Exit Strategy: $ 129,900 Sales Price (Buyer gets own Financing) Results: n May take longer to find qualified Buyer n Holding costs of $1,280+/month until you find buyer (figure 6 months) $7,680 n Cash to You on Purchase $7,000 (use for holding costs) n Cash to You at Closing on Sale $31, Tim Taylor Success Coach, LLC. All Rights Reserved. Page 83

2 ASSIGNMENT OF CONTRACT FOR PURCHASE AND SALE In reference to the contract for purchase and sale dated between or Assigns, Buyer, and _ Seller, concerning property described as: Buyer hereby assigns all rights to said contract for sale and purchase to Assignee in exchange for compensation in the amount of $ The assignment fee is ONLY refundable if the seller is unable to transfer a good and equitable title to Assignee. Otherwise assignment fee Non-Refundable. Buyer/Assignor Date Assignee Date Buyer/Assignor Date Assignee Date Tim Taylor Success Coach, LLC. All Rights Reserved. Page 84

3 THE PURCHASE AND SALE AGREEMENT n The purchase and sales agreement should always be prepared when proposing offers through the Realtor. n A professional or a Realtor can fill out the content of the agreement, but you can also fill it out yourself. n If it is your first time, make sure you are filling it out correctly. Refer to examples in this manual. n Be aware of additional disclosure documents that many states require you to sign Tim Taylor Success Coach, LLC. All Rights Reserved. Page 85

4 SALES AND PURCHASE AGREEMENT Buying All Cash 1. The undersigned PURCHASER offers to purchase the property located at 123 Main Street, Tampa, FL also known as, Permanent Parcel #, as described in the legal description attached hereto as Exhibit A, which is hereby incorporated in this agreement by reference, be the same, more or less, but subject to all legal highways ( Property ). The property shall include the land, all appurtenant rights, privileges and easements, and all buildings and fixtures in their present condition, including, without limitation, such of the following as are now on the Property: all electrical, heating, plumbing and bathroom systems and fixtures, all tacked down carpeting and flooring, all fireplace fixtures, all window and door shades, blinds, awnings, screens, storm sashes and curtain rods, all landscaping, TV antennas, garage door openers and controls and. 2. PURCHASER agrees to pay for the Property the sum of [ ] approx. [ ] exactly $, payable as follows: 100, X (a) Earnest Money (cash given to SELLER upon acceptance) (b) Cash, to be deposited in escrow, part or all of which may be proceeds of any mortgage secured by PURCHASER 99, (c) Purchase money loan to SELLER on terms set forth in Paragraph 7 (d) Existing mortgage balance encumbering the Property to be [ ] assumed [ ] taken subject to by PURCHASER (e) Other: 3. SELLER shall furnish a general warranty deed, in recordable form, conveying to PURCHASER, or nominee, good and marketable title to the Property, with dower rights, if any, released, free and clear of all liens and encumbrances whatsoever, except (a) any mortgage assumed by PURCHASER; (b) easements, covenants, conditions and restrictions of record; (c) all legal highways; (d) zoning, building and other laws, ordinances and regulations; and (e) real estate taxes and assessments which are a lien but not yet due and payable. SELLER consents to the preparation of the deed by PURCHASER S attorney. PURCHASER shall order a commitment for an Owner s Policy of Title Insurance from, (closing agents name) in the amount of the purchase price, as evidence or assurance that there has been conveyed to PURCHASER, or nominee, the title required to be conveyed hereunder. If any defects in title appear on said commitment, the SELLER shall have 5 days to remove such defects, at its own expense. 4. Time is of the essence of this agreement. If PURCHASER defaults on this agreement, all deposits will be retained by the SELLER as full settlement of any claim, whereupon PURCHASER and SELL- ER will be relieved of all obligations under this agreement. If SELLER defaults under this agreement, the PURCHASER may seek specific performance or elect to receive the return of the PURCHASER S deposit(s) without thereby waiving any action for damages resulting from SELLER S breach. In connection with any litigation arising out of this agreement, the prevailing party will be entitled to recover all costs including reasonable attorney s fees. SPATB Tim Taylor Success Coach, LLC. All Rights Reserved. Page 86

5 5. Interest on any assumed mortgages, prepaid premiums on all insurance policies deposited in escrow (PURCHASER has the option of placing its own insurance), tenant rents, if any, and all taxes and assessments, both general and special, shall be prorated by the Escrow Agent as of the date of filing the deed for record or ; provided, however, that the full amount of all installments of any respreads of assessments, and/or special assessments shall be (a) paid by SELLER; (b) credited to PURCHASER on the purchase price at present pay-off figures; or, (c) if PURCHASER so elects in writing, assumed by PURCHASER. In prorating taxes and assessments, the amount shown on the last available tax duplicate shall be used. 6. All documents and funds necessary to the completion of this transaction shall be placed in escrow with (closing agents name) within 30 days from the date of acceptance of this offer, except that if a defect in title appears. This transaction shall be closed the next business day after all documents and funds are deposited. The Escrow Agent shall charge to SELLER any pay out of the purchase price (a) the real property transfer tax and any transfer fee; (b) the cost of the title search, commitment and premium for the policy of title insurance; (c) any amounts due PURCHASER by reason of prorations; (d) the amount of any respreads of assessments and/or special assessments payable by SELLER; (e) any broker s commission payable by SELLER; and (f) one-half (50%) of the escrow fee and all fees for filing the deed and any mortgage placed on the property by PURCHASER. Each party shall be responsible for their own attorney fees, if any. 7. The balance due SELLER will be evidenced by a negotiable promissory note of PURCHASER and delivered by PURCHASER to SELLER dated the date of closing, bearing annual interest in the rate of % and payable _ per for [ ] years [ ] months. Privilege of prepayment [ ] does [ ] does not apply. The loan will be [ ] due [ ] not due on sale of Property. 8. If a survey is required to transfer title, it shall be provided by SELLER, at its expense. 9. Occupancy: [ ] SELLER represents that there are no parties in occupancy other than SELLER. PURCHASER will be given occupancy at closing unless otherwise specified herein. [ ] PURCHASER understands that the Property is available for rent or rented and the tenant may continue in possession following closing unless otherwise agreed in writing. Deposits will be credited to PUR- CHASER at closing. 10. SELLER shall deliver possession of the Property to PURCHASER on, or before, the date of filing the deed for record or. 11. If any buildings or other improvements are damaged or destroyed prior to the filing of the deed for record, PURCHASER shall have the option (a) to receive the proceeds of any insurance payable in connection therewith, or (b) terminate this agreement and to recover all funds theretofore paid. 12. Additional Terms, Conditions or Addenda attached hereto (lettered A, B, C, etc.) A: B: C: SPATB Tim Taylor Success Coach, LLC. All Rights Reserved. Page 87

6 13. Upon acceptance, this offer shall become an agreement binding upon and accruing to the benefit of PURCHASER and SELLER and their respective heirs, executors, administrator and assigns, and shall be deemed to contain all the terms and representations, warranties or agreements. 14. Title to be taken in the name of:. (your name or corp.) (your name or corp.) Purchaser Address Phone Purchaser City, State, Zip Code Date DEPOSIT RECEIPT: SELLER or its agent hereby acknowledge receipt of $ as an earnest money deposit, subject to the terms of the above offer. Mary Seller ACCEPTANCE: SELLER accepts the above offer and agrees to pay to as sole procuring agent(s) in this transaction, a commission of % (to be divided ) based upon the purchase price stated in the above offer. Mary Seller Seller Address Phone Seller City, State, Zip Code Date SPATB Tim Taylor Success Coach, LLC. All Rights Reserved. Page 88

7 PROCEDURE: How To Get A Signed Purchase Agreement To Buy (Cash) Each item needs to be completed. Staple this Checklist to file. Date Subject Property Address Date Initials Completed 1. Pull a Sales & Purchase Agreement version SPATB (Only document required) 2. Have all parties to Agreement complete and sign 3. Fax a copy of original Agreement to Title Company or closing agent 4. Follow-up by telephone to Title Company to start Escrow Closing process 5. Create a file for subject property 6. Place ORIGINAL Agreement in INVENTORY file until Escrow closes 7. Open and review Escrow Instructions when you receive them from Title Company 8. Sign, Date, Return Escrow Instructions in self-addressed envelope provided ASAP 9. Receive fax Copy of HUD from Title Company prior to closing 10. Review Settlement Charges on HUD to See if Satisfactory 11. Get Cashier s Check and Take to the Title Company 12. Place Fax Copy of HUD in File 13. Drop Off Check to Title Company 14. Place Homeowner s Insurance on property 15. Place 1 HUD-1 Closing Statement in INVENTORY file 16. Get interior and Exterior Photos of Subject Property 17. After Deed is Filed and Returned to me File Deed in Property File Special or other comments on this transaction: Tim Taylor Success Coach, LLC. All Rights Reserved. Page 89