When to Have An Addendum In Real Estate Investing

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Cuz I understand what you’re trying to do is you’re trying to get the seller into a commitment to move the ball forward before you have actually negotiated the numbers. So who can do that for you? Okay, this is a great one, Jessica, I have a contract out the way that I set up the contract because I wanted her commitment sooner rather than later. Since we haven’t seen the inside, it was hard to put a price just to get her commitment. I said, we can open it up now get everything ready for when you allow us to come in and get photos just to try to get her to go ahead and formally sign the contract. What is missing on the contract?

Just the purchase price? Yeah, it just says it. I wrote it in to be determined based on seeing the interior condition of the property. That’s fine. We’ve done that multiple times. Yeah, here’s the challenge. If she goes and she tries to challenge you, you’re gonna have an issue. You get the contract signed, she fills in the number a month into the escrow. Let’s say it’s a 45 day escrow. She gets a higher offer the people who are offering her a higher number go hey, it looks like there’s two different handwriting’s on this contract one with all the signatures and then one with the actual purchase price. What the hell is going on?

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Oh, yeah, well, the person who I originally contracted with it was offering me less money said sign the contract, and then we’ll fill in the number later. And then they can come in and challenge that and go, Oh, my gosh, we can get you out of that contract in two minutes. So how do we after the fact make sure that something is amended and cleaned up? Because I understand what you’re trying to do is you’re trying to get the seller into a commitment to move the ball forward before you have actually negotiated the numbers. I totally get what you’re doing. And it’s a smart plan.

I think your answer says in what you just said you use the word amendment that’ll lead you down the right path. Yes. Okay to get you to go there. So who can do that for you? The amendment would actually be an addendum. So I said the wrong word. An amendment would mean I’m going to change a contract and addendum would be in addition to the contract once you have officially opened escrow you call your title company, you go hey, can we make sure we just sent her a quick addendum acknowledging that we filled in the number after the original date but she still agrees to the number and now it came from the title company. They verified it. Now. Is that pretty easy to challenge? No. It’s not easy to challenge and all of the pieces are there. bing bada boom.