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Lately, I’ve had the conversation several times with students trying to save a few bucks
by taking shortcuts with their expenses building their biz. Be careful, silly!
It’s important to use good judgment on your spending. We all know that saving money is
the same as making it… to the bottom line at least… but don’t save $10 when that
savings may cost you $10,000!
Trust me, I remember all too well what it’s like to need $50 to get something done and
having to go through a stack of credit cards trying to find one with $50 on it… I’ve
been there, and I’m sure most every successful investor has too, at one time or another.
I know what it’s like to decide to either pay myself this week, or pay a credit card,
and I’ve learned (out of necessity) how to use one credit card to pay another, heh.
Even so, there are some things that you shouldn’t cut corners on.
One of them is your contracts.
Sure, you can Google and get free real estate contracts online, or find them for a few dollars,
but it reminds me of a statement my hockey coach made to me years ago when I found a
$10.00 helmet.
He said: “If your head is worth $10.00, buy a $10.00 helmet”.
The same saying can go towards your contracts. “If your deal is worth $10.00, use a $10.00
contract”.
I just had a (%!#*#!) seller sign all of the closing documents, then pull the title agent
aside (it was out of state so I was not present) and tell her not to pay me!
It was an Inverse Purchase deal, also known as a retail flip or an option deal. The Title
Company notified me I was being taken off the HUD, and I immediately recorded my contract
at the courthouse, stopping the deal in its tracks.
Over around a week’s time, the Title Company legal team looked through my contracts, as
did the sellers lawyer, and all told the seller that she was out of luck, and I “had”
to be paid, now or anytime in the future that she sells. My contracts saved me.
Those contracts were part of a program I purchased years ago, I believe for $2,000.00. I then
paid an attorney a whopping $150.00 to review them.
The check I got for this deal was $19,500.00.
Am I suggesting that you pay an attorney to review every contract you receive? No… but
I am suggesting that you make sure they come from a tested, reliable source… not a free
website on the internet.
your budget, think of the possible implications. Assess what you may lose in the future by
Now go MAKE an OFFER!