How to Generate a Real Estate Wholesaling Contract?

Written by Michael Slane  

Real estate wholesaling is a powerful strategy for investors looking to secure properties at a discount and assign or sell the contract to another buyer for a profit. A critical component of this process is the real estate wholesaling contract, which formalizes the agreement between the buyer (you) and the seller (the property owner). If you’ve been wondering how to create a professional, legally binding contract quickly and for free, you’re in the right place. In this comprehensive guide, I’ll walk you through the step-by-step process of generating a real estate wholesaling contract using a free online tool, share tips for success, and explain why this approach is a game-changer for both new and experienced investors.

What Is a Real Estate Wholesaling Contract?

A real estate wholesaling contract is a legally binding agreement that outlines the terms of a property purchase between the buyer and the seller. It serves as the foundation for the transaction, detailing key elements such as the purchase price, earnest money deposit, inspection period, closing date, and any exclusions or special terms. While the contract is legally binding, it’s not the final sale—it’s the starting point of a conversation that can be adjusted through amendments if needed.

For wholesalers, this contract is particularly important because it allows you to secure a property under contract and then assign it to another buyer or close the deal yourself. The flexibility and simplicity of a well-crafted contract can make or break your ability to close deals efficiently.

Why Use an Online Contract Generator?

Creating a real estate contract from scratch can be daunting, especially if you’re new to wholesaling. You might worry about missing critical legal clauses or spending money on expensive legal services. That’s where an online contract generator comes in. Tools like the one offered by Discount Property Investor simplify the process by providing a pre-formatted template that ensures all necessary details are included. Here are some key benefits:

• Speed: Generate a contract in three minutes or less, even from your phone.
• Cost: It’s completely free, saving you from costly attorney fees for basic contracts.
• Ease of Use: The user-friendly interface guides you through each field, making it accessible for beginners.
• Professional Output: The generated contract is professional and ready to present to sellers and title companies.
• Flexibility: The contract can be amended later if terms change, giving you room to negotiate.

Step-by-Step Guide to Creating Your Contract

Using the free tool at Discount Property Investor, you can create a real estate wholesaling contract in just a few minutes. Here’s a detailed breakdown of the process:

1. Navigate to the Contract Generator:

   • Visit discountpropertyinvestor.com/contract-generator.
   • The tool is optimized for both desktop and mobile devices, so you can generate a contract on the go.

2. Enter Buyer Information:

   • Full Name: Input your name as the buyer (e.g., John Doe).
   • Phone Number: Provide a contact number for communication.
   • Email Address: Enter a valid email where the generated contract will be sent. This is crucial, as the contract will be emailed to you within 60 seconds of submission.
   • Mailing Address: Include your mailing address. This is important for title companies, as they may need to send documents after the property closes.

3. Enter Seller Information:

   • Seller’s Name: Specify the name of the property owner (e.g., Jane Smith).
   • Property Address: Provide the full address of the property you’re contracting to purchase (e.g., 123 Main St, Anytown, USA).
   • Seller’s Mailing Address: Enter the seller’s mailing address, which may differ from the property address. This ensures title companies have the correct address for sending documents post-closing.

4. Specify Offer Details:

   • Offer Amount: Enter the purchase price you’re offering, such as $100,000.
   • Earnest Money Deposit: Indicate the amount of earnest money you’re putting down, such as $500. This shows the seller you’re serious about the deal.
   • Inspection Period: Specify the number of business days for due diligence, typically 15 days. This gives you time to inspect the property and ensure it meets your expectations.
   • Acceptance Deadline: Set a deadline for the seller to accept the offer, such as one week from the current date (e.g., February 18th if today is February 11th).
   • Closing Date: Choose a closing date, usually about a month out (e.g., March 17th). This gives both parties enough time to prepare for closing.
   • Closing Costs: Indicate who will pay the closing costs. A common approach is “each party respectively,” meaning the buyer and seller cover their own costs. Alternatively, you can offer to pay all closing costs to sweeten the deal.

5. Include Exclusions or Additional Terms:

   • List any items the seller wishes to exclude from the sale, such as a kitchen fridge. If there are no exclusions, enter a period (.) to ensure the contract generates correctly.
   • Add any special terms, such as specific conditions or contingencies. For example, you might note that the seller needs to remove certain items before closing. If there are no additional terms, you can leave this blank or enter a period.

6. Complete the CAPTCHA:

   • Verify you’re not a robot by completing the CAPTCHA prompt. This is a quick security step to protect the system.

7. Submit and Receive the Contract:

   • Click “Submit” to generate the contract. Within 60 seconds, the completed contract will be emailed to the address you provided.
   • The generated contract will include all the details you entered, formatted professionally with fields for the buyer’s and seller’s names, property and mailing addresses, offer amount, earnest money, inspection period, closing date, closing costs, and any exclusions.

Watch the Full Tutorial

I have a full video for this That walks you through the process visually, showing exactly how to fill out each field and generate the contract. Watching the video can help clarify any questions and provide a real-time demonstration of the tool in action.

Best Practices for Using Your Contract

To ensure your real estate wholesaling contract is effective and accepted, follow these best practices:

• Consult an Attorney: While the contract generated by the tool has been used successfully hundreds of times, it’s a good idea to have an attorney or title company review it to ensure it complies with local laws and regulations. This is especially important if you’re new to wholesaling or operating in a new market.
• Verify with the Title Company: Before presenting the contract to a seller, check with your title company to confirm they can work with it. Most title companies will accept a well-structured contract, but it’s always good to double-check.
• Understand the Contract’s Role: The contract is the beginning of a conversation, not the final sale. It outlines the terms you and the seller agree on, but it’s flexible. If issues arise during due diligence (e.g., you discover the property needs significant repairs), you can negotiate amendments or request a mutual release.
• Be Prepared for Amendments: Real estate deals often require adjustments. For example, if the seller requests an additional $5,000 or you find issues during the inspection, you can amend the contract to reflect new terms (e.g., reducing the offer to $90,000) or exit the deal with a mutual release.
• Communicate Clearly with the Seller: When presenting the contract, explain its purpose clearly. Emphasize that it’s a starting point for the transaction and that you’ll work with a title company to ensure a smooth closing.

Why This Tool Is a Game-Changer

The Discount Property Investor Contract Generator is a powerful tool for real estate wholesalers because it streamlines the contract creation process. Here’s why it stands out:

• Time-Saving: You can generate a contract in three minutes or less, allowing you to focus on finding deals and negotiating with sellers.
• Cost-Effective: It’s completely free, making it accessible to investors at all levels.
• Reliable: The tool has been used successfully in hundreds of real estate transactions, proving its effectiveness.
• User-Friendly: The intuitive interface makes it easy to input information and generate a professional contract, even if you’re not tech-savvy.
• Mobile-Friendly: Generate contracts from your phone, giving you the flexibility to work from anywhere.

Common Scenarios and How to Handle Them

Real estate wholesaling deals don’t always go perfectly, and the contract’s flexibility allows you to adapt to changing circumstances. Here are some common scenarios and how to address them:

• Seller Requests a Higher Price: If the seller asks for more money (e.g., an additional $5,000), you can negotiate and amend the contract to reflect the new price or propose a mutual release if you can’t agree.
• Issues Found During Due Diligence: If your inspection reveals problems (e.g., the property needs major repairs), you can use the inspection period (e.g., 15 days) to renegotiate the price or exit the contract. For example, you might say, “Based on new information, I can only offer $90,000 instead of $100,000.”
• Delayed Closing: If the seller needs more time to move out or you need extra time to secure funding, you can amend the closing date with mutual agreement.
• Exclusions or Special Terms: If the seller wants to exclude items (e.g., a fridge) or include specific conditions, you can add these to the contract or amend it later if needed.

Additional Tips for Real Estate Wholesaling Success

To maximize your success as a real estate wholesaler, consider these additional tips:

• Build Relationships with Sellers: A strong rapport with sellers can make them more likely to accept your offer and work with you on any issues that arise.
• Work with a Reliable Title Company: A good title company can streamline the closing process and ensure all paperwork is handled correctly.
• Conduct Thorough Due Diligence: Use the inspection period to thoroughly evaluate the property’s condition, market value, and potential profitability.
• Network with Other Investors: Wholesaling often involves assigning contracts to other buyers, so building a network of cash buyers is key to closing deals quickly.
• Stay Organized: Keep track of all your contracts, amendments, and communications with sellers and title companies to avoid confusion.

Final Thoughts

Creating a real estate wholesaling contract doesn’t have to be complicated or expensive. With the free Discount Property Investor Contract Generator, you can generate a professional, legally binding contract in just a few minutes. This tool simplifies the process, saves you time, and gives you the confidence to secure deals and move forward with your wholesaling business.

Whether you’re a beginner or a seasoned investor, this contract generator is a valuable resource to streamline your workflow and close deals efficiently. Start using it today to take your real estate wholesaling to the next level.

Thank you for reading, and happy wholesaling!

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