When I sat down to start writing a post about the “Cover Your Ass Contract Clause Class” I had one burning question pop into my head…

“Why do investors avoid educating themselves on the very contracts they use to buy and sell real estate when those same contracts are the basis for their success and/or failure?”

Too often I hear answers like…

…why should I bother with that?

…that is what I bought (insert expert’s name) course for.

…that is why I pay an attorney.

All of these answers are bad and I will address them one by one.

The first answer…why should I bother…that is the absolute worst answer in the book. You should be concerned with protecting your ass because your business and potentially your family’s livelihood is on the line. How would you like it if you had grown a successful business only to have it taken away in an ugly lawsuit by a tenant who stepped through a floorboard?

…that is why you bought (insert expert’s name) course. There are several problems with this answer and a few questions you should be asking yourself…Are the contracts state specific? How long ago were the contracts updated? Have new laws passed in your state? Whenever you purchase a course which contains contracts you should ALWAYS have the contracts reviewed by an attorney in your investment state! Which brings us to…

…that is why I pay an attorney. If this is your response, GREAT JOB! You are well on your way to using real estate contracts correctly. As I said above, you should always have your contracts reviewed by a local attorney. But there are a few things you need to keep in mind. When your attorney reviews the contracts, they are mainly concerned with if the contracts will hold up in your investment state. They are not concerned with whether your investment is protected to the furthest extent allowable by law. Sure you can ask for this type of treatment, but any advice you CPA or attorney gives you is advice that they must stand by themselves. When advice is given, it is not only yourself which is on the line, it is also the attorney on the line!

It is vital that you know how to Cover Your Ass and that you take it seriously because a lot is riding on your business. When someone wants to be a manager of a bank, they do not get tossed in as a manager without having any experience. They have to go through rigorous training which often includes a few weeks at each and every position below that of branch manager. With your real estate business, you need to at least be versed in every aspect of the business, and that includes knowing the contracts you use on a regular basis.

That is why every real estate investor must have the “Cover Your Ass Contract Clause Class”!

Cheers,

~ Ross Treakle