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In the past, real estate transactions often relied on a simple handshake agreement between buyers and sellers. However, this practice has changed, and now formal contracts are essential. Despite having a contract, there's still a risk of a seller selling to someone else, especially for wholesalers. To mitigate this risk, the tutorial outlines four steps to prevent being cut out of a deal. Jerry Norton highlights three critical moments in wholesaling: signing a contract with a motivated seller, executing a contract with a cash buyer, and, most importantly, the final closure of the deal, which results in receiving a substantial profit.
