How to Draft Bulletproof Real Estate Contracts (Investor's Guide)

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If a real estate contract doesn’t have the right protections, you can end up overpaying, losing your deposit, or getting stuck with costly repairs. In this episode, I walk through the six key clauses I use in every deal to make sure I'm protected—no matter what market I’m in. I cover things like inspection contingencies, appraisal gaps, financing terms, permit and license transfers, and the “and/or assign” clause. I also share a few stories from my own deals where these clauses saved me thousands.

Timestamps:

00:00:00 Intro

00:00:27 Why contracts can make or break your deal

00:01:11 Understanding buyer vs. seller markets

00:02:13 How market conditions impact your negotiation leverage

00:03:14 Strategy if you're a buyer

00:04:13 Strategy if you're a seller

00:05:26 Inspection contingency explained

00:07:32 Real-world example: tree roots and sewer damage

00:08:01 Appraisal contingency breakdown

00:10:02 What is an appraisal gap and how to handle it

00:10:36 Financing contingency and rising interest rates

00:11:52 DSCR example and renegotiating purchase price

00:13:10 Why financing contingencies are critical

00:13:50 Permit and license transfer contingency

00:15:57 STR regulation example from Hot Springs, AR

00:16:19 Why this matters in regulated or urban markets

00:17:15 Assignment clause and “and/or assign” contracts

00:18:08 Contingency checklist for real estate deals

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*None of this is meant to be specific investment advice, it's for entertainment purposes only.