I need some advice on assigning deals

I respect realtors for what they do in the bu
siness...we have a few realtors right here on this board who are now investors.

BUT...most realtors you will encounter do not have a clue as to how investors work. They are trained one way..."if you don't have credit you are unworthy of a loan to get a house." They wouldn't even begin to know how to work a no money down deal. My realtor lady at church came to me last week and told me she wants to learn how to wholesale because she is making no money as a realtor.

That is nonsense what they said to you. You can see people making deals with no money down
on this board everyday. There are some young one on here working with wholesaling. You are not too young at 18. You are actually a perfect age for jumping into real estate. Can you only imagine what you will be worth by the time you are 21 if you work dilligently at it everyday!!!

Look at all of these people right here on this board who have aquired real estate with no money at all.

I have one myself I am about the wholesale. I locked it up on contract a little over 2 weeks ago. All I have invested in it is the gas I use to show it to prospects and the For Sale By Owner signs I bought to put in the yard and on the street. I probably haven't even put as much as 2 hours work on the deal yet.

I look at many houses everyweek and people are wanting me to contract their houses and try to sell them. But I only contract what I belive I can sell.

Don't even listen to what they said to you. They live in a different world of real estate. We are living in a new world of working deals and there are so many ddifferent ways to work these deals...no matter how young you are. My 17 year old son is working with me side by side on these deals and has much respect from potential clients probably because of his young age and determination. They love seeing a young man out there assessing houses and making quotes on how much to give.

Too young???? No way!!!! You go for it and never let anyone's words stand in your way.

you right about the realtor all he keep telling me is that i need a lic and i need experties he justs keeps saying it like theres no way i can do this i belive i can so now im looking for house for sale buy owners on dif web site i put up a few crigst list about some buyers got a few bites and i also talk to a few house owners about assigning there props so i like the fact that your telling these people you can do it besides what realtors say

I just turned 24 this year and my wife and I are starting into real estate. We are going through All the courses offered and trying to understand the insane amount of information that is contained within them, but we are still very apprehensive about diving into it because we know very little about what we are doing. At this point in time i have no problems finding all sorts of different properties, each within it's own set of circumstances, but in being so new to Real Estate Investment how are we to understand what is a great deal from something that is beyond our understanding? I'm excited to start this venture being fairly young and still very plyable, but what am I looking for? In reading forums and comments I find myself getting discouraged because of my lack of knowledge. Where is the best place to start and really get my feet soaked? I'm very thankful to all of you on here who are so willing to help and guide those of us who are unsure. Many thanks!

You say all you have spent is for gas and your for sale signs..so this is a property you are essentially selling for someone on contract (sort of like a realtor)and you just agree on a percentage or do you have a price you "locked up" and you get anything over that?

Was this a house you found that was already for sale (by owner) I imagine? (as if it were sale by realtor, why would YOU have for sale signs..you would just have a contract locked up with and/or assigns, right?)

Sorry. I know I seem ignortant...I just am trying to understand the different ways people are wholesaling and assigning. I've been a wimp in this area thus far. I need to find something in this area that I believe I can do. I know I can find deals, I know I can fix up homes, I know I can be a landlord but for some reason I don't know that I can assign or wholesale. I just have this misconception that I can't do that..act as a realtor.

I know..Go ahead and yell at me and make it loud..maybe it'll get through. Any other wimp like me want to have a challenge in this area? Maybe I'll get er done then.

Like everyone else who is wholesaling I have the house locked up on contract and I am finding the end buyer. I will make my wholesale money on closing day. Yes...it was a FSBO. I am not acting as a realtor. I am selling a deal/contract to an end buyer. I don't own a house I own a contract on a house and I am selling my interest in the contract.

Yes...all I have spent is money driving down the street to show the little house and money I used to buy the For Sale By Owner signs with my personal phone number on it. I also advertise the house amongst my buyers and on every free internet web site I can find.

You are not seeming ignorant to me. It just that most people let the fears inside them dominate their actions. You can get out there and wholesale some deals too.
Do not let your fears and insecurities over take your ability to make some money. Wholesaling is done many times a day and is totally legal or it would be shut down in all states.

I might be making this harder than it is but how do you find your investors, especially right now when a lot don't want to put down 20% and don't have the tools we have? I have looked in classifieds and Craigslist and can't find them! How do you not get stuck not buying the home that you are holding for investors in order to get your own down payment? Could you explain step by step your first deal assignment? I am sure that many of us would benefit!

From reading the book, and reading post, is assigning a contract basically when you try to get a property(FSBO) for cheaper than what the seller is selling it for, then put that in contract, then raise the price to what you want to get the difference...So if the seller wants 150,000 but you offer 130,000 and they accept, you then sign the contract with the and/or assign. Then raise the price up to maybe 145,000 and have the end buyer then sign. Then at closing you get the difference between what you signed the contract at, and what you assigned it to the end buyer. So in this case it would be 145,000(you assigned property for) minus 130,000(which you offered the seller) which is 15,000. So 15,000 is what you made in profit...Am I understanding assigning correctly, or am I wrong?

MORE OR LESS YOUR RIGHT MARC FOR THE MOST PART CRB ON HERE POSTED SOMTHIGN THAT CAN HELP YOU OUT ON THIS HERES THE LINK FOR THE FOURM ALOT OF PEOPLE DO ASSIGNING ON THIS WEB SITE I MYSELF IM WORKING ON ASSIGNMENTS MY SELF
http://www.deangraziosi.com/node/11943

Thanks alot...Im still a little confused on the actual contract(s) that I bring that needs to be signed...I understand after you put your name on the contract, you put and/or assigns. But which contract is it that you sign to get it under contract. Would it be the "Agreement-to-purchase" contract that you can download on this site...Then after that is signed and you have a buyer, would it be the assignment of contract found on this site for download that you and the buyer(that you find) sign...then send it to the attorney and go from there???just trying to understand everything I possibly can before I do this...Thanks a ton

This may sound really dumb but here goes. When you do assigns are you doing double closings? If not how do you get the original seller to agree to no down payment?

Steve

If you are assigning....

1. Use the Purchase and Sale Agreement. This is filled out with you as the buyer and seller as the seller. Put the amount you and the seller agreed on. Do not put you assignment fee on this contract....only the agreed upon purchase price.
On line #10 you can add your contengencies/bailout clauses.

2. When you find an end buyer use the assignment of contract between yourself and the end buyer you have found. The end buyer will write a check to your layer in the ammount of your assignment fee. A lot of assignors will get the end buyer to cut them their assignment fee on closing day. Some assignors get them to give half (non refundable) as soon as they decided to buy and the other half on closing day. And sometimes you will get an end buyer to give you 100% of your assignment fee up front.

3. Now there will have to be a new contract created between the end buyer and the seller of the house.
At this point they usually will have their own contract. If not you can help them out by giving them the (blank) Purchase and Sell Contract...maybe you want to even help them fill it out.
Then they will take this to the title company of their choice.

No...there is no need for a double closing when doing an assignment.

2. When you find an end buyer use the assignment of contract between yourself and the end buyer you have found. The end buyer will write a check to your layer in the ammount of your assignment fee.

when you say they will write a check to your lawer in the ammount of your assignment fee, does that mean the amount you want like 5000, 10,000 etc. or does that mean if you contracted the property at 100,000, you put on the assignment contract 110,000 so you make the difference???

i think I understand now, just making sure...I think I just put the amount I want cause that would mean if i contract property at 100,000 and its worth 130,000 and i want 15,000, then i tell the buyer its 115,000 and on the assignment contract, I just put the amount of 15,000. then put the end buyer and the original seller in contract

I also need to know,are the contracts on this site ok to use in N.Y?

I feel for your situation. A lot of people ( not only realtors ) will not give the light of day to the younger generations.

One thing you may want to do is to contact these realtors by email. This way, you can mask your age. They may just see you as a potential investor to buy some of their property that they desperately need to sell.

You may also want to do some of the leg work yourself, such as finding 25 properties in a price range/area that is selling, and give them the list to make the offers... or if you feel up to it, find out who is selling the properties and make the offers yourself.

My wife and I are just getting into REI ourselves. DG's weekly blogs are helping a lot at keeping us motivated and they are filled with great information. If you haven't watch any yet, go to the link below to see them.

http://www.deangraziosi.com/dean-graziosi-video-blog

Good luck and keep up the great work at starting your new career as a Real Estate Millionaire!!

Yes...that is exactly the way.

Cool...Thanks for helping me out...Im so excited to be learning and understanding...I actually contacted an attorney(set up a meeting tomorrow to go over what I wanna do and figure things out) I also contacted a real estate agent(who I also have a meeting with tomorrow)

Basically told her I want to find out what areas around me are selling the fastest...what price range is selling the fastest...then ima have her narrow that down to maybe a hundred properties that fit that criteria...then ima take it further and have her narrow it down to properties that have been on market the longest(maybe over a 120 days or more)

Then have her, or I will contact the owners and offer between 30 and 50% off. When I get someone that says yes, ima check out the property and if its good and looks like a good deal, ima do what I can to get it under contract and find some buyers who want it. It feels amazing to see it coming together(although I still don't know what I am doing completely)

So thank you everyone who has been helping me out, and from all the post from the past...Action def gets you further than just saying and not doing...Learning as I go, and know it will all come together in the end

have another question actually...As far as when you find potential buyers for properties, do you need a buyer that has got the cash to buy it straight out(obviously best case scenario I imagine), or not necessarily?

my thinking bout this is, if I only have a certain amount of time to find a buyer, and they have to go through and get financing(and potentially not get approved or it takes to long) won't I possibly lose that deal???And even if they do get approved quick enough, and i do want to assign it to them, and have the lawyer contact the buyer so they can sign the assignment contract, does the buyer use part of that financing(that they got approved for) to pay the lawyer the extra that I am charging cause they may not have any money at all(so if get 50,000 under contract and want to assign(sell the contract basically) for 20,000 profit, which would be 80,000. Does the assignment contract say 20,000 on the line where it says "in exchange for compensation in the amount of"

And should the real estate agent know(if going through one) that I am doing this? and what bout the seller? Do they need to know I am making that profit from assigning the contract to an end buyer???

Thanks again for the help...I really appreciate it so much, Marc

i think sis cleared it up once you make contact with the seller he/she signs the aggrement then you find the buyer he/she signs the aggrement u brought to them after that its your option i give those aggrements to your lawyer he can finsh everything up for you from there or you can do it like sis way and print out a contract for them and they can take it to the title company someone correct me if im wrong

I have a couple of questions on this..

1. Does a lawyer have to be involved in an assignment? ( will write a check to your "layer" or "lawyer" in the amount of your assignment fee). My layer--my fee or my lawyer--my legal advisor.

2. Has anyone had a REO accept a contract with and/or assigns? I have a couple I want thinking about trying..

3. Do I have to be able to actually fund the deal? I know you do in double closings but is it a requirement on assignments..it seems I have read conflicting info on this. I have the pre-approval letter to be able to write the offer but do I go beyond that on assignments?

THANKS!!!

1. Does a lawyer have to be involved in an assignment? ( will write a check to your "layer" or "lawyer" in the amount of your assignment fee). My layer--my fee or my lawyer--my legal advisor.

Answer: Yes in some states...NO in other states. I prefer to use a lawyer simply to look out for my best interest and to be there to represent me just in case I ever (knock on wood) end up in court. Lawyers being involved also creates a feeling of "this is all on the up and up" with your client and looks more professional.
Others may have a differnce of opinion on this.

2. Has anyone had a REO accept a contract with and/or assigns? I have a couple I want thinking about trying..

I have never tried an REO but some on here have. Most will reject and or assigns and then you may find one that will accept. Keep asking around and try to find one to let you. Then let us know how it goes for you.

3. Do I have to be able to actually fund the deal? I know you do in double closings but is it a requirement on assignments..it seems I have read conflicting info on this. I have the pre-approval letter to be able to write the offer but do I go beyond that on assignments?

Yes...on double closings. NO...on assignments. But when you have to do assignments it is better to have an attorney to collect your assignment fee for you. Then again you may run into an investor who has no problem writing YOU a check for your assignment fee. But if he gives you trouble over your assignment fee it is so much better to have your lawyer to go to bat for you to collect.

That really helps me clarify it all..

I suppose I ought to really start combing the FSBO..been a little lazy about that lately as the REOs in my area are where the deals are at.

Very much appreciate the information!

Just to throw something else in this thread about assignments on REO's, I found another blog that suggested the technique to buy the property in an LLC or a land trust, and then sell your rights in the LLC to your buyer at closing.

OR add a trusted buyer (only) to the contract, then after closing, quit claim it to them for sole ownership in exchange for the fee

Might be worth a try for a REO..

Thanks again!! K