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Contract Flipping
Real Estate How To

Contract Flipping 101:

There have been many books/videos/systems advertised on how to flip a real estate contract, of course they don't call it that.

There are many different ways of successfully completing this transaction the two forms primarily used are purchase agreements and options. This page will focus on purchase agreements and will provide a tutorial of how it can be done along with pitfalls, notes, and requirements.

RealEstate Contract Flipping Objectives

The objective is to secure a Purchase/Sale Agreement with a distressed or unconcerned property owner then assign your interest in the contract to a third party, collecting a fee. The fee is the difference between the contracted price on the purchase and sale agreement and the amount agreed upon for the assignment.

Contract Flipping Land Contract

Here's a Simple Residential Land Purchase and Sale Agreement. Once Signed by Seller and Buyer, the agreement can be delivered to the Closing Agent or Closing Company to begin the process of closing on the property. If you intend to Assign the contract, which you are, ask the Seller for a 60 day closing and negotiate for a lesser deposit. I have had perspective buyers ask for no down and up to 90 days to close, repeatedly.

Contract Flipping Note:
THE BEST CALLER told me her husband was in Iraq and he would be returning in 3 months. She really wants to purchase the property but couldn't until his return. Her sister lives in the area and they are afraid the property won't be available when her husband returns. She is positive he will love the property, as she does. For my patience she would be willing to give me an additional $500.00 at closing, but the agreement has to be 0 down with a 90 day closing.

__________PURCHASE AND SALE AGREEMENT__________

This Purchase and Sale agreement (“the Agreement”) is made and entered into this 3rd day in the month of May and year of 2009, by and between

Contract Flipper or Assignee (hereinafter called “Buyer”) whose primary address is: _238 Epmoe Dr, Palm Bay, FL. 23896 and Want To Sell (hereinafter called “Sellers”), whose primary address is 929 N Espinoza Dr, Miami, Fl 33030.

WITNESSETH

In consideration of the mutual covenants contained herein, Seller agrees to sell and convey and Buyer agrees to purchase and pay for the property (described in section 2 below) on the terms and conditions hereinafter set forth:

1. Definitions. As used in this agreement:

A. “Purchase Price” means: Twenty Thousand
Dollars ($20,000.00)

          B. “Closing Agent” means: Title Office,Closing
                 Agent,address, phone

          C.   “Assignee” means: A Person,Corporation or
               Entity upon which this contract is assigned
               to, if any.

      2. Premises. The property subject to this agreement
         consisting of a parcels of vacant land of approximately
           50,000 square feet, having the:

             Common address of 393 Jacaranda Dr
              Legal description of: Port Malabar Unit 3 Lot 10 Blk 12;
              Parcel id #29-37-07-GL-00423.0-0013.20, together
              with all rights, privileges, easements and
            appurtenances thereto.

      3. Purchase Price. The Purchase Price shall be payable by
           Buyer to the Seller as follows:

         ($400.00) Four Hundred Dollars shall be forwarded by
           Cashiers Check to “Closing Agent” no later than 10
           days from the date of this contract. The deposited
           funds shall remain in escrow until such time as closing.

           As per line A of section 1 the “Purchase Price” shall
           be paid in its entirety, less deposit received, on the
           date of closing.

4. Conditions.

          A. Seller shall convey the property by warranty deed,
           free of encumbrances and liens, with clear and
           marketable title upon the day of closing. Buyer
         shall pay all closing costs except those pro-rated
   real property taxes and or home owners association
      dues, as per our mutual agreement.

         B. "Assignee" if so designated, shall act in same
               regard as Buyer and will be bound by the obligations
       set forth in this Agreement.

         C. This is an Assignable Contract.

      5.   Restrictions, Easements, Limitations. Buyer shall take
            title subject to: Zoning, restrictions, prohibitions and
            requirements imposed by governmental authorities;
            restrictions and matters appearing on the plat or
            common to the subdivision; public utility easements of
            record.

       6. Place of Closing. The place of Closing shall be at the
            office of the “Closing agent” as described in line B
            section 1.

       7. Default. If Seller or Buyer fails to perform any of the
            covenants of this agreement, the Agreement shall be
            void with no damages sought by either party. If
            Seller fails to deliver and perform those
            Conditions set forth in "the Agreement", the funds
            held in escrow shall be released to Buyer.
            Likewise, failure by Buyer to perform and deliver
            those Conditions set forth in "the Agreement" shall
            result in release and forfeiture of escrow funds to
            Seller.

        8. Closing Date. This agreement shall be closed and the
            deed and possession shall be delivered on or before the
            12th day of June, 2009.

WITNESSED BY:

___________________ __________________ ____
Witness Signature Printed Name Date

__________________ ___________________ ____
Witness Signature Printed Name Date

_________________ ___Want To Sell______ ____
Seller Signature Printed Name Date

________________ __Contract Flipper______ ____
Buyer Signature Printed Name Date:

Record the below Memorandum at the County Clerk's Office after the above P&S Agreement has been signed by both parties. ONLY THE ORIGINAL DOCUMENT CAN BE RECORDED. Make a copy for yourself.

Contract Flipping DOCUMENT RECORDING REQUIREMENTS

Every document presented for recording must have a three-inch by three-inch (3” x 3”) blank square at the top right corner, for official use on the first page.

Mailing address of Grantee (Buyer), must be contained within the document when pertaining to transfer of interest in property, with exception of mortgages.

Name and Address of person preparing the document must be shown within the document, when document pertains to transfer of real property.

All items to be recorded must come with a self-addressed stamped envelope. The name and address (with zip code) of the person to whom the recorded instrument will be returned must be written on the back of the document. The information on the back of the document and on the envelope must agree.

A person signing a document to be recorded must sign before the proper authority, such as a notary public. A notary must state what form of identification was used, affix his seal and state the date that his appointment expires, as well as printing his name.

All transfers of real property to be recorded require the signature and printed names of two witnesses.

Once recorded the document will appear when a title search is conducted, so all parties will be on notice as to the nature of your interest in and claim upon the property.

     PREPARED AND RETURN TO:
     Contract Flipper
   238 Epmoe Dr
    Palm Bay, FL. 23896

For Official Use Only

               MEMORANDUM OF AGREEMENT

     The undersigned, Contract Flipper, as purchaser of the
     following described property:

         Common address 393 Jacaranda Dr;
         Legal description of: Port Malabar Unit 3 Lot 10 Blk 12;
         Parcel id #29-37-07-GL-00423.0-0013.20

Hereby verifies that the above property is subject to a Real
Estate Purchase and Sale Agreement with Contract Flipper, 238 Epmore Dr, Palm Bay, FL. 32896, which provides for the sale of the above property, dated May 3rd, 2009, and any transfer of such property is subject to the rights of Contract Flipper as provided in such agreement.
A copy of that certain Purchase and Sale Agreement afore noted is here entered as Exhibit 1.

In Witness Wherefore, I,We have executed this document on this 8th day of May2009.

                                       by: __________________________
                                             Contract Flipper
                                             238 Epmoe Dr
                                             Palm Bay, FL. 23896

Witness Signature_________________
Printed Name____________________

Witness Signature________________
Printed Name___________________

                               State of: Florida
                               County of:___________

The foregoing instrument was acknowledged before me this 8th day of May 2009 by Contract Flipper, and who is personally known to me or produced _____as identification and who did/did not take an oath.

_____________
Notary Public

____________
(Printed Name)             My Commission Expires____________

If you intend to Assign the Purchase and Sale Agreement to a third Party you will want to get the Prospect to sign a Non-Circumvent/ Non-Disclosure Agreement before divulging any information. This document is frequently used to ensure honesty and integrity, on the part of all parties. The perspective Assignee for the above P&S Agreement, once bound by the terms of the NCND Agreemeent with you, shall not enter into a contract, negotiation or agreement without written approval by intruducing party. It makes it difficult for a Prospect to enter a contract or agreement with your Seller and cut you from the deal. Likewise, you can't do that to other parties bound by this agreement either. People are a little more leary about cutting you out or using your source, once they sign the NCND Agreement.

Contract Flipping Note:Make sure that each party initials the bottom of each page of the below Non-Circumvent/Non-Disclosure Agreement.

It has been brought it to my attention that this page has been copied and is being sold without my authorization. I have brought forward, through this site, decades of experience and knowledge and have made it available without cost. Regrettably the remainder of this contract flipping tutorial has been omitted but is available for purchase.

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Contract Flipping
Real Estate How To