Verbal contracts may be legally binding, but trying to enforce them is an exercise in how to spend money on legal fees. It makes no sense to operate your foreclosure investment business without written contracts.

Deals are not really deals until you and the property owner put everything in writing. This is also true of someone that is buying a property from you. Until a purchase offer is placed in writing, there is no deal.

Intentions are good, and people are often able to talk big, making grand statements. But it all comes down to what is, and isn't, on the paper.

The agreements you use should be first reviewed and approved by your attorney. Each state and court jurisdiction has its own rules and customs. You want your contracts to be enforceable and withstand any court challenge. The mere fact that your contract is legally binding can stop someone from contesting it.

Your attorney can (and will) advise you not to rely on verbal contracts but rather to reduce any contract and agreement to writing. If someone is not willing to put an agreement in writing, something is wrong. This is a huge signal not to do business with that person.

Contracts and agreements are often fill-in forms. By writing the names, addresses, terms, and dates, an agreement is formed between yourself and the other party. There is also a trend to use boilerplate documents created in word processing software on a personal computer. The details of each deal are filled in at the appropriate location within the document. Following printing, the document is signed by both parties. Your attorney should approve of the basic form and language of whatever type or style of document you use.