Subject To Investing - One of my favorite contract clauses

When it comes to real estate investing and contracts, whether it is lease option investing or subject to investing or any other type of real estate investing, it's always good to use contracts that include clauses giving you additional levels of protection. Standard real estate contracts were never really mean for special real estate deals.

For example, one of my favorite clauses to include in my subject to contract is this seller acknowledgement:

We understand that the purchaser is a real estate investor and intends to resell the property at some future date and expects to make a profit.

I make certain that the seller writes their initials next to all of the special clauses in my contracts indicating that they understand the deal. Lay it all out there. Yes, you are a real estate investor. Yes, you intend to resell the home later and make a profit. This is only right and fair, you aren't running a charity. Your goal is to help the seller and make a fair profit.

In subject to investing I do not advocate taking advantage of a seller or trying to make an obscene profit. The deal should be a win-win for everyone. By having the right clauses in your contract, like this one, the seller is acknowledging that they understand that you are a real estate investor and will be making a profit from this. There is no point in hiding that.

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