Assignment Contract

um, you know what, i know there's a LOT of people on this site who LOVE that Contingency, however i'm NOT one of them, and the reason is, it's a "Weasel Clause", please whoever does use this Contingency don't take offence to that, it's just a LOT of homeowners beleive it or not, know what it is and why we use it, a LOT of sellers won't even sign the contract if it's in there, so personally i don't even bother, you can get the same results with a MUCH better, more REPUTABLE Clause(s), the ONLY Clauses you should EVER NEED are: #1 "INSPECTION CONTINGENCY", #2 "FINANCING CONTINGENCY", #3 "THE ABILITY TO ASSIGN", they are the ONLY Contingencies that you SHOULD EVER NEED, Now thats me, you do whatever makes you comfortable, SULLY

You had stated that you have a P&S contract that you like to use. Have you ever ran into trouble whereas the agent would not except yours, and wanted you to use thiers?

I know that you personally do not like using realtors, and from what I gather, you work mainly with FSBO's, but, I wasn't sure if you ever had to work with a seller who had a realtor.

Thanks Sully!

Oh ya, by the way----You Are My Hero!!!!

That would be great if you could post the contract. I am not sure how to do it either but Im sure that someone knows. I have looked but havent found any assignment contracts just the purchase aggrements.

Any purchase contract becomes an assumption contract when you let the seller know that you want the option to assign. You do this by putting 'your name and/or assigns' in the space where you enter the buyers name.

Al

Is there a way to "consult" versus locking up a deal and then assigning it? The reason I ask is that most the deals I am finding are foreclosures that the bank has bought back and are now either sitting..not yet listed or listed. It seems like locking these up and assigning these deals would be difficult or am I being narrow minded? Is anyone on this site from Ohio..is it even legal to assign in Ohio? Any idea of where I would find that out? Thanks!!!

When dealing with a bank, it can be difficult to assign a contract. As far as if it is legal, call a title agency, and ask them. If it is legal, write the offer, and present it. The bank will let you know if they will accept the assignment.

Al

Thanks Sully, I will reconcider my wording off the Finacing Contingency.

I love this site, you guys are great.

Thanks!

Any luck on figureing out how to put the assignment contract with all the clauses on here?

I just recevied my first contract today,from a lawyer of the seller.
he does have my and or assign after my name but it is worded diffrently, he has (and or his assign), does that make a diffrents?
and sorry Sully but it does have,Seller acknowledges that buyer must obtain approval from buyer's financial partners for the within transaction.

Hey David, Nope.....I have NO Friggin' Clue how to post my Contracts on the site? Wish i knew a Little bit more about computers, SULLY

Just copy and past it.
go to your document copy all, then go to your, Post new comment and past it,that it, it works.

After locking up the deal and having the buyers interested, how is the reator approached? With my deal, I had asked the realtor if I CAN HAVE UNLIMITED access to the property and she said that she would need to show it. So, my question is when the buyers want to look at the property, what should be mentioned to the realtor? She may want to know who these people are. I told her that I may want to have a team of contractors look at the property, but I don;t believe my buyers are going to represent themselves as contractors.

You may want to have the Realtor sign a Non-Disclosure/Non-Circumvent Agreement with you, so you can feel good about letting your potential buyers/investors see the property. Remember it is in the Realtor's best interest to work with you, especially if you want to build a strategic business relationship with them. If you look under Contracts in this Forum you will find that a very good
Non-Disclosure/Non-Circumvent Agreement has been posted.

Hi everyone, i am a newbie and i am doing a lot of research and i found out quite a few stuffs. If anyone can help me with this question it would be a blessing. Is it possible to lock in a property through an agent,than assign,flip or double close on that property for a higher price. If yes how does it work,an example: property worth 200,000, i lock in for 140,000 in good shape, is it possible to assign, flip or double close for 180,000 with an end buyer. I'm not sure of the right word to use. Please help,thank you.

I've seen tons of valuable information here about working with the sellers and buyers and contracts for them, but I haven't heard anything about how the Realtor fits into the program. Build and Nancy touched the subject, but I'm curious about what the Realtor typically gets from a deal. The book gives an example of buying a $100K property and assigning it for $110K, but nothing about what the norm is for compensation of the Realtor or how they fit into the contracts.

I could be wrong, but one reason could be because we are buying straight from the seller and a seller typically takes care of the commission if a realtor is involved.Hope that helps and if anyone can add something for you also to elaborate more just in case.

I am new to real estate investing. But it has been explained to me that when we assign it to the new buyer that the real estate agent represents the contract (you and/or assigns) The three percent goes to your agent who represents you or the contract and the investor that is buying the property pays the realtor.

I could be wrong, so anyone elses information would be helpful.

Hello, I see you really know your stuff. :- ) Can you tell me exactly what paperwork to use an how many. (ASAP)I have an idea and think I got it but I just want to know for sure every paper to use for the assignment deal. I have investors lined up now as I speak.... waiting.

Hello again. Ok.. about clauses. All that you just mention (Clauses)... could all them clauses be put into 1 contract? And where exactly do you put it. They all sound relavent.

Hold on.. I was reading your reply to David. You scaring me. I have no money. So you can't do an assignment deal with an attorney unless you have $300 or $500 If so what other options do I have to make this deal work. I was stuck on No Money Down out of pocket

Hello Elena. I was reading your comment. What is ( Due Dilligence )?

Hello Sully. I was reading your comment to Dave about using an attorney. I can't afford one right now, I'm new... but like you said I would want one in the future. So how are you exactly doing your assignment deals now. This is the only thing that holding me back now from making my move. I have a lot of investors waiting an calling me like crazy for these properties. I have foreclosurealert.. so the properties are there. And one more thing, can you please tell me the exact 3 forms to use. I think I have it but since you so knowledgable, I want to be sure. Thanks pal!

Thanks again, as usual, a very easy to understand straight forward response.

Alex,
I just read this thread and dont see that your question was answered.

If you find a buyer/investor that doesn't give you criteria and says he will buy all good deals, then ask for some examples. Like what does he consider a good deal because your idea of a good deal may not be the same as his. You need to know if he considers XX% below FMV a good deal like 20% or is he looking for more like 40%. How about a house built 40 years ago,or does he want only houses built in the last 20 or a property that is a great deal but needs $XXk in rehab.
Always try to get what critera you can the first time you chat and if you hit obstacles like with that guy at Homevestors then think outside the box. Get his contact info. including his email address then email him. You want to get his/her attention and interest so ask the above mentioned type questions with examples. ie. a property built 40 years ago at 30% below fmv and property 50% below fmv but needing $20k rehab(actually tell him about a few properties). If he shows interest in those specific properties then of course lock them down or at least get him to sign a NON-CIRCUMVENTION, NON-DISCLOSURE AND CONFIDENTIALITY AGREEMENT, the whole point is to start a relationship.
He will know that you are sincere and not just curious. It's all about perspective. If I tell you hey Alex I need your help I need people with money to buy so I can make birddog and reassignment fees do you have money? Compared to asking basically the same thing but in a better way. Alex I have and can find the kind of properties you are looking for like this one and this one(that will get his attention and show I am a someone that acts) then once you have his/her attention they will probably start volunteering the info, or at the least be more willing to give you a little more of thier valuable time. Dont ask them up front what they can do for you(well unless your Dean or at his level)tell them and better show them what you can do for them. The whenever the subject of your fee, payment, % or whatever comes up he will already know you take action.

Scott

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