Assigning question

Assigning question

Why would someone agree to sign a contract with you to sell their house at a much lower price only for you to reassign it at a higher price. Why wouldn't they just decide to sell it themselves at the higher price? I guess what I'm asking is how can you convince someone to drop their asking price significantly to a price low enough where you can turn around and reassign it at a profit? Realistically you would really need to be able to get it at least $20k below what you think you can turn around and sell it for in order for it to make sense for you to go through the trouble. Also, why would be seller be willing to wait 60 days on you and "trust" that you're going to get them the $. You'd think that they would say "call me when you get the money, until then I'm going to continue to try to sell it". What am I missing?

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A couple of things... if you

A couple of things... if you are just going to assign the contract, you do NOT need a 20K spread. You mean you wouldnt just sign the paper over for 5K? I would.

Or did you mean spread between FMV and what you buy for. If the latter, there can be many reasons. But basically, a property does not just have one price. It has a price to sell in 6 months, 3 months, 1 month, 1 week etc. How bad you want/need to move that property?

They are tired of dealing with the property and tenants and just want it gone. They are going through a divorce and just want to get on with their lives without a SO. They are about to be foreclosed on. It may need repairs that the owner doesn't want to/can't deal with.

But the long and the short of this is... you don't know what they seller will do.. or why.. until you ASK.


Makes sense. Thanks!

Makes sense. Thanks!


How to get away with a higher profit

If you do want to get a higher profit from a property that you would like to assign but want the details to be kept private then proceed with a double closing. You can do this and even make it seem like you put money down. With a double closing you work with the title company and they know everything that is going on and what you are trying to do. Here is how it works. First you set up the closing at say 10:00 a.m and the closing will be you buying the property from the sellers. You are buying a property for $60,000 and agree to put down 10%. You pay for all closing costs and down payment and you write a check for $6000 to the title company. (I am trying to make this simple and easy to understand so I am not counting tax proration or closing costs.) Then at 11:00 a.m. you close in another room at the title company and close with the new buyers and now you become the seller. You sell the property for $80,000 and you get the difference for what is owed on the property which is $26,000. ($60,000-$6,000=$54,000 then $80,000-$54,000=$26,000) You go deposit $6,000 into your checking account to cover the $6,000 and pocket the rest. You will pay short term capital gains as always but you just made a nice profit. You see, the title company only goes to the courthouse at the end of the day to record all of the transactions so you didn't need the money in the account right away. Another no money down deal. Good Luck.

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Very interesting. But you

Very interesting. But you would still need to come up with the 60k mortgage though right? If I understand correctly, the benefit here is that you don't have to tell anyone, except the title company, about your strategy and you can make some good $. The con is that you have to actually purchase the property yourself before reselling it.


more info

is it hard to get 2 closings on same day how do you deal with title company is that who holds title can u deal with them on your own how hard is it to do the deal with them plus is it hard to get a buyer that fast after you buy yourself newone


nothing good is easy

I am not saying it will be easy. You need to talk to several title companies and ask them if they handle double closings. Ask them a lot of questions and write them down. It took me a while to find a title company that felt comfortable with double closings.

About having the mortgage. It is easier to be able to have a mortgage but if you don't qualify then talk to the title company and see if they would just allow you to write a check and pay cash for the home in lieu of the second closing. Then deposit the check you get at the 2nd closing into your account to cover your position. It seems complicated, it really isn't. I learned how to do it through Dean's coaching program. Just start asking questions to several title companies and before long you will be proficient at it.

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You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!


How To Get Away With A Higher Profit

Hello cbrpower,
This is surely a way to hide the profits from the first seller but it is also a way to clobber a good investment for a desire to make more! It's true that you could use this strategy, but a lot can go wrong in an hour. I have seen many times were closings were delayed or postponed for many reasons. This style of using none of your own money is very risky, in my opinion. IF for some reason you cannot close with the buyer as scheduled and you do not have the money in the bank at the end of the day your reputation could be ruined beyound repair.
As I said, this is a great way to hide from the seller just how much you are trying to maximize your profits but I would make real sure that if the second deal didn't close as expected that I already could cover the costs of the first deal without having to run to the bank on the same day!
Thanks for the tip cyberpower!


No Big Deal

I have been in a lot of closings. My average closing lasts 20 minutes. I have had one last 10 minutes. But besides that, I am just using the hour example as just that, an example. If you lack confindence in your team then push the closings apart an extra hour or two. I don't like sitting around the title companies office any longer than I need to. I am usually anxious to go look at my new property and start getting things going. I don't feel it is that risky if: I have done a good job of qualifying my new buyer, and I know I can count on my team. One time I lined up a buyer for a home in 2 days and it still made the closing date, starting from scratch! My team and I worked very hard and there was some stress involved but we did it because I THOUGHT IT WAS POSSIBLE.

Some people are a "glass is half empty kind of person."

Some people are a "glass is half full find of person."

Some people are a "glass was engineered way to small for me kind of person!"

Think positive!

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You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!


Hi everyone, I am looking

Hi everyone, I am looking into assigning to other investors because i currently have no money. I have a part time job that barely pays the bills and $400 car payment i cant get out of that I'm upside down in from a past relationship, i still live with my parents and have other debt and want to better my situation. I'm tired of living crappy because of fear of getting into a situation i'll need help to get out of. my family has had to bail me out of many financial situations because of naive mistakes and i want to be able to do this without getting into a bad situation ill need to get bailed out of agian. Like i said before i have no money my credit isn't very good but is getting better, so any loans or mortgages would be out of the question. If i was to find a good deal on a preforclosure and found and investor to assign to would i need to get a mortgage to buy from the original owners? plus to get a legal contract from a lawyer how much would that cost?


assignments...

I was just going over the agreement of sale doc (the offer contract)and I have a question. In the contract is has a field called "buyer's address"

My question is if I plan to assign this contract to someone...what's the deal with the "buyer's address" field? cause it will have mine listed!

Thanks,
D - DE

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Don't Wish the Past, Create the Future! - DH


Finding And Assigning Properties

What are the steps to finding and assigning properties with no money down?

You mention doing a double closing when assigning properties.

Do it require me to have good credit when purchasing these properties?

I would appreciate a response from anyone that would answer.

Thanks!

Great Estates08


check the most common

questions asked forum, on the ASSIGNING PROPERTYS, as for good credit, nope, credit has NO impact on ASSIGNING PROPERTYS. YOUR HERO,SULLY.Laughing out loud

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YOUR HERO, SULLY


assigns

GreatEstates08 wrote:
What are the steps to finding and assigning properties with no money down?

You mention doing a double closing when assigning properties.

Do it require me to have good credit when purchasing these properties?

I would appreciate a response from anyone that would answer.

Thanks!

Great Estates08

Dont need to double close on an assignement. Just assign (write) the contract over the buyer in exchange for a check.


I was...

writing on offer up yesterday and I started wondering.....Should all the deals you intend to assign be "all cash" deals? I mean...cause the person you assign to now is obligagted to the contract you got accepted with the seller. So will the assignee what to abide to a 80% loan ...or what ever it may be...

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Good question

Hazco Investments wrote:
writing on offer up yesterday and I started wondering.....Should all the deals you intend to assign be "all cash" deals? I mean...cause the person you assign to now is obligagted to the contract you got accepted with the seller. So will the assignee what to abide to a 80% loan ...or what ever it may be...

This is actually a really good question. Im thinking leave the financing in the contract. The new buyer can always waive the financing contingency if they so choose.

Most sellers arent going to complain about a faster close with fewer contingencies.


new buyer

"The new buyer can always waive the financing contingency if they so choose"

Is the new buyer able to make changes to the already accepted contract?

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Don't Wish the Past, Create the Future! - DH


Sure.. with seller approval.

Sure.. with seller approval.

Also, I can't imagine there would be a problem if they decided to pay cash instead of getting financing.

Really, the seller doesn't need to know WHERE the money is coming from, only that the buyer can close ie if they are getting financing then the seller needs to know that the buyer actually CAN get financing.


contingencies

Hazco Investments wrote:
"The new buyer can always waive the financing contingency if they so choose"

Is the new buyer able to make changes to the already accepted contract?

But this is not changing the contract anyway.. THis is just the buyer saying that they waive their contingency which they can do unilaterally. At some point this would happen anyway.. Any contract I have ever seen has time limits on all contingencies.

And then instead of Bank of America wiring funds into escrow, the buyer does it. It would be transparent to the seller.


ok...

wmark1963 wrote:
Hazco Investments wrote:
"The new buyer can always waive the financing contingency if they so choose"

Is the new buyer able to make changes to the already accepted contract?

But this is not changing the contract anyway.. THis is just the buyer saying that they waive their contingency which they can do unilaterally. At some point this would happen anyway.. Any contract I have ever seen has time limits on all contingencies.

And then instead of Bank of America wiring funds into escrow, the buyer does it. It would be transparent to the seller.

"has time limits" understood...thats what made the light come on! Right all financing contingencies have timelines...like will have application done by x date.

if buyer fails to comply to said date, the seller MAY cancel this agreement in writing and retain any erarnest monies.

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Don't Wish the Past, Create the Future! - DH


Yaeh.. but if instead of

Yaeh.. but if instead of filing a 1003, the buyer put the entire purchase price into escrow, then the seller is going to have a hard time getting the earnest money.

Plus, the reality is that they want the house sold rather than the earnest money.


2 closings

Hi, I went to 2 closings back to back. Wasn't hard, alittle time consuming but the money made was worth it. You shouldn't have to hard of a time, just get the title company to coinside together back to back.

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investor i am


Assignments

I am trying to do an assignment. after I contact the homeowner and they agree on the deal, should I already have an investor lined up or should I CONTACT the INVESTOR AFTER THE Contrct is handed over to me, with the intention of assigning it off.


Either works.. but better if

Either works.. but better if you have some investors lined up so

1) you can offload the deal more quickly- better for everyone and

2) you know FOR SURE what the investors are looking for.


assignments

I am trying to do an assignment. after I contact the homeowner and they agree on the deal, should I already have an investor lined up or should I CONTACT the INVESTOR AFTER THE Contrct is handed over to me, with the intention of assigning it off.

Either works.. but better if you have some investors lined up so

1) you can offload the deal more quickly- better for everyone and

2) you know FOR SURE what the investors are looking for

So basically im negoitiating a great price for the investor, while still easing the home owner. How long does these usually take on average?


Assignments

Hello-

I am 20 years old and really interested to start investing in real estate... I dont have money, so I am trying to do an assignment. I have read throuhg alot of posts here and they are very informative.. I understand most all of it.

But IT would be great if anybody could just list out all of the exact steps for doing an assigment.. Mainly- while signing a contract with the seller with an assigment clause, where do I get a legal contract? and for the assignment clause, do I just write it on the contract?

Also, I went through alot of ads in the newspapers and craigslist and didnt find many ads from investors at all, so just getting a little worried on how to find potential investors that I can contact. should I run some ads after i find some properties? is that the best approach? I really HOPE SOMEONE CAN HELP ME OUT. I see everyone turns to sully, so hopefully you can?


Finding Investors

Do anyone have some unique ways to find investors to assign deals to?

I have a couple of properties in mint condition In a gated community
that are preforclosures, waiting for me to lock up. I would like to
assign the deals, but so far I havent had any success in finding investors.

These deals have potential for profits now, but if someone held these
until the market turned around they would make a bundle!!!


Do I have to take it to closing?

Hi...If I find a property and negotiate a purchase price with the seller, do I have to go to closing to reassign the property or can I just reassign the property to a buyer/investor and then they take it from there?

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"The hands of the DILIGENT MAKETH RICH!" (Proverbs 10:4)


Erikat

Sorry I missed this and didn't get an answer sooner. You have to re-assign before you close, not after. It'll be too late then. Get that paperwork into the title company before the closing date or extend the date, if you need more time, with an addendum.

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Cool Elena Cool
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."


Hi Elena

Thanks for replying... I had gotten the answer to my question already but what I meant was, do I get paid when I assign the property or do I have to wait until after the investor I assign the contract to closes on the property? The answer I got was that I can get paid when I assign the contract without having to wait until the investor/assignee closes if that is what the investor/assignee and I agree upon.

__________________

"The hands of the DILIGENT MAKETH RICH!" (Proverbs 10:4)


erikat

You would get paid at closing from the proceeds of the sale. If the buyer has the money to pay you, then that would have to be written in the agreement prior to closing so there's NO confusion. It's usually considered a double closing and the funds are distributing accordingly. I hope that clarifies it for you.
Best of luck!

__________________

Cool Elena Cool
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."


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