-
Click to Connect with me on:
Real Estate Investing in Black and White
One mistake that a lot of real estate investors make, and I can attest to this, but I don’t make them anymore, is they don’t get everything in writing. This is a cardinal sin when it comes to real estate investing even if the person you are doing business with is a friendly acquaintance. Very, very, very, very important to get everything in writing when you’re negotiating on a deal, whether you’re buying a property or selling a property.
There are going to be a lot of nuances that come into play when you’re negotiating with the other person. They’re going to want something. You’re going to want something. You want make sure that in order to avoid any future issues down the road, questions, problems, misunderstandings, all the agreements are spelled out in black and white. The more that you have in writing, the better you’ll be able to justify and explain and understand and go back and remember what was agreed to. None of this he said, she said stuff. So, that way if somebody were to come in from third party and look at all your paperwork from an outside point of view having not spoken to anybody involved, that person from the outside in should know exactly what the terms were, what’s going on and be able to make a decision based on one way or another if it came down it and know exactly what was agreed to. There would not be much room for interpretation and you wouldn’t be left guessing how your rights in the deal were being compromised.
Get everything in writing that you possibly can. There are addendums to contracts called CYA letters, which stands for Cover Your Assets (and other things if you know what I mean). It’s very important that you get those signed in certain situations if the situation calls for it.
If there is a situation that initially may not seem as if one of these addendums is necessary, but your gut says, you know, maybe I should then DO IT. It’s kind of like my father-in-law who when building just about everything uses gorilla glue in addition to the nails. It may not seem entirely necessary, but the job is that much more complete and he feels whatever he just put together is that much more secure. Also, it’s ok sometimes to ask the other party to sign an addendum that you thought maybe you should have got signed in the first place. You should always be vigilant about protecting yourself, because if you aren’t, no one else will and your business success will be a real struggle. You want to make sure you get everything in writing so that everybody knows; all parties know what’s going on.
Let’s drive this point home; if somebody can’t come in from an outside point of view and clearly see what was agreed to and know all the terms of the deal in black and white, then you’re not being concise enough with your documents. So, get everything in writing. It will protect you down the road if you ever need protection down the road with something.
I know this sounds like a really simple thing, but you’d be surprised how many people do not actually incorporate this process in their business. Get it in writing.
I have plenty for you in writing, manuscripts, CDs, and the list goes on all about real estate investing and what you need to know to pursue this business. You must go here:
www.freemakemoneygift.com/Invitation.html
Comments
Leave a Reply
-
-
Other Blog Stuff
