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In the past, real estate transactions were sealed with a handshake, but now contracts are essential to secure deals. However, just having a contract may not always be enough to prevent a seller from cutting you out of a deal. As a wholesaler, it's crucial to take steps to ensure that both buyers and sellers uphold the agreed-upon terms. Jerry Norton discusses the four steps to prevent being cut out of a deal as a wholesaler, emphasizing the importance of securing contracts with motivated sellers and cash buyers to ultimately close deals successfully and receive a substantial payout.