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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Good information

Thanks for the amazing information. I am working on my first double close and i know everything will work out, yet still a little concern as to make sure I do not miss anything. I will post and let everyone know how it went.

Darrell

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Darrell Ford
Lifetouch Properties LLC
www.lifetouchproperties.com
"Failure equals my death, I Shall not Fail."


Help!

Hi all! I think you are all great and have some greatinformation to share! I am new and extremely excitedvabout the entire process : )
Can anyone tell me they are familiar with any good title companies,attorneys,real estate agents???
I am in NY on Long Island, Suffolk County.

I would appreciate any input! Thanks everyone and good luck with all your success.


Thanks cbrpower, I have been looking for this answer

I know this is an old post that I am commenting to but I have been looking for this answer after finding a real estate attorney to be part of my team. The conversation was going good then he said something to me that raised a red flag that made me think he knew not much about double closing.

He said to me that the buyers bank that I will sell to (you know the b to c part of the double close) will look at how long the seller (me) own the property because of all the flipping that has been going on and will not want to lend the money to the buyer that I will be selling to because I haven’t owned the property long enough and I could be flipping. I did not believe that to be true.

After our conversation he was opened minded about making it happen however at this point I wonder if I should be finding a different attorney or should I educate the attorney on how to help me. He do have access and relationships with title companies that he has done assignments with himself and for others.
What are suggestions?

cbrpower wrote the following that gave me what I needed to know:

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.


My First try at Assigning

Hello Everyone,

I hope this finds you all enjoying the holiday season. It is so exciting to be taking my first steps with Deans' program, this community of like minded people and myself as a new investor. After attending the course and immersing myself in the materials I am cautiously eager to find and complete my first assignment deal. I have a few questions and would be very grateful to anyone that would give me a well informed reply.

1) Can you assign REO properties or does it HAVE to be a private seller?

2)Is it reasonable to have a reputable contractor inspect a property and give you an estimate of repair costs at NO cost. I want to be sure I am accurately calculating my MAO before I were to make an offer.

2b) Would a seller or bank allow you to have a contractor come to the home
before you have made an offer?

3) When working with a real estate agent how do they make commission off of a wholesale/assignment deal? I want to be sure if I do a deal on a property that was sent to me via an agent that they are properly compensated.

4) When assigning a contract can you only do these deals on homes that are fully paid for? What if, and I'd assume is likely, he seller still has a mortgage left on the property? Are you negotiating the sale with the assumption that the seller is going to take a loss and still be on the hook for the remaining balance of the mortgage?

Thank you in advance for your replies.

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Everett


Trying to save my own property PLEASE HELP!

My husband and I were devastated when the economy and realestate turn for the worst,as we were both Loan officers at the same company.We are now seperated but are good friends. When times were good (8 yrs ago) we owned 2 properties, a 3 unit and a 4 unit. Both properties were purchased and placed in trust to other family members but we have the control. I lived in the 3unit which has been completely foreclosed on. I now live in a condo which I have learned is in foreclosure right now (2yrsnow).I need to save my 4 unit . My husband is out of the state,tells me to get the property if I can. He feels its upside down and is not interested. The family member is willing to sign quit claim deed.The property needs a roof and some tender loving care along with an inspection.The apts are gorgeous 3 bd, 2 full baths (3 of those) ,(1) 2bd apt in bsmt.One section 8 tenant in basement $700, 2nd fl tenant not paying any rent, first floor is empty and I have decided to move in , I had a storage for last 1 1/2 yrs paying $130. I can no longer afford it or the rent($1050) for the condo I live in, which is in foreclosure.Over the weekend I moved all my things from storage to the building 1st fl hoping to conquer this. Have a lot of ideas but very confused about how I should do this . 3rd fl tenant is paying $600 to my husband ,but he has been using for income.The building has been in forclosure process for 2 yrs, has not not went to sherriff sale yet. taxes of 2 yrs have not been paid (5500). I finally researched the property to find this much out , was going a different direction my self, but decided to find the courage to make this my first deal but with all the info don't know where to start.Income has been mininimal. But I am working on something that may generate some money soon.Need help. Don't want to lose this one.What should be my first step? Please help, Monesharp

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Namasutra


questions

I am going to wholesale properties and I need to know what questions should be asked for the buyer from the seller? Or what am I looking for the buyer in a home?

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Martha Miranda


Assignment Question

Martha,

First you need to build your buyer's list. You need to find investors who will tell you what types of properties they are looking for (location, square footage, bedrooms, bathrooms, price range). You will then select a real estate agent who can help you find the types of properties your buyers want. The agent will represent you when you make your offers on the houses. Once an offer is accepted and you have a signed real estate purchase contract, you will then contact your buyers and give them information on the house. When you quote your price to you buyer, you will give a price equal to the price you are buying it at plus your profit. Once the buyer agrees to buy at that price, you will have the buyer sign an assignment of contract. You will submit the assignment into the escrow and get paid when the deal closes.

Good luck.


Assigning

Really Green Newbie! What is the Best way to make a Profit, and what forms will i need? Thank You!!!

Been reading your answers to each other and you Guys are Great!!!!!!!!!!!


Not clear

Matt, how do you "make it seem" like you put money down? So with this "double closing" you actually have to BUY the property, correct? (meaning you have to have a loan or the cash..?)Finally, wouldn't a double closing mean double down payments - one for each transaction?

thanks!

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Dan


Assigning Contracts

Hello team, New here so please bear with me! I have several questions that I would like to ask (which I'm sure have been answered already but I'm having trouble pinning down the exact answers. So, here goes!

Q1: Regarding props on market for 90 days+, realtor says "usually on the market that long for a reason" What do U say to that? Q2: When I bought my last house, the "traditional" way there was a stack of paper over an inch thick, but in Dean's book, only seeing a couple of very simple forms...Where does all that mass of paperwork come into play and by who? (I'm assuming that if you actually buy the prop - your realtor/the title co. & if U do an assignment, only need a couple simple forms?) Q3: I read that 1 reason U can offer a property at a discount is because you "won't be bringing in a RE agent" (& paying their commission) but on the other hand, have read that a good agent is indispensable to your success...? Q4: How much should I pay my agent/how is she compensated, & when do I pay more or less? Q5: when dealing with a motivated seller, how do U determine when to offer 30, 40, 50 or 60% off the FMV of a property? Q6: Should your agent make all your offers (and make none yourself) or should U sometimes make offers personally? Q6: I’m probably missing something here, but how do you lock up a property on contract without putting down any earnest money?? How do you show good faith to the seller? I know it's a lot - thanks in advance Smiling

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Dan


lots of great advice,

lots of great advice, thanks!


Business Name

What is a good web site to find out if a business name is already in use.


Assigning to Retail Buyers

I'm going through my Rock Bottom Blueprint, and I came across something of a question. Dean & Matt mention that when the assignment is done it must be done to a CASH buyer...and I think they said it has something to do with ability to qualify, and the banks willingness to back an assignee. Can someone further expatiate on this for me? I'm wondering, first of all, why this can't be done - and second of all, I'm wondering whether Hard Money buyers are considered CASH buyers...because in my mind I'm imagining an investor buyer, and perhaps a home that doesn't need repairs - meaning that right off the bat they'll want to be applying for a bank loan on the property to hold for rental. Thanks for any help.

Sincerely,

Ryan Hart


Tennessee....

Alot of your questions can be answered by reading his books and continuing research on this site. For double closings you do need the funds whether it be your own personal money or a loan.Transactional or flash funding is used for this purpose.


assignments

Hi. I over heard at a seminar that assignments are illegal in massachusett? I could be wrong. Any help would be appreciated. F.Lambert (franco02130)

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'Fortune Favors The Bold', Francis Lambert


Assignments

Hi. My name is Francis and I am happy to say that your post from "06/06/2011 #332" gets me very excited. I am one who puts himself in a position where I stand alone.

This piece is just a turning point at what really is the effective decision making behind the sales of property through assignments. The properties should please the buyer's ultimately, this is 'Paramount'. I am building my buyer's list as soon as I finish this post. Thanks you for clearing things up.

And by-the-way, I will be watching for more of your posts in the future.

"Fortune Favors The Bold" Francis Lambert. Boston, Mass.

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'Fortune Favors The Bold', Francis Lambert


Behind My Back

Ok: In short, How do I prevent a buyer going behind my back and waiting untill time is up on my contract to then buy it them selves and not pay my fee on assignment!
THE LONG VERSION: I believe one of my buyers who had viewed the property (listed Property)waited for my contract to recind before going in her/him self and made their own offer. My chief suspect is a family rehaber. Went out to the property said more would be needed to rehab kitchen. I called her back after seller asked me to buy at 10,000 less. Did not hear back from her in time had to recind. Day of recind, she text me says going to go back out and see if she can make it work. I told her to go to seller's agent and make an offer. Told her my expectation was that she would honor our agreement. At this point,I would take half my fee. Orginally 5,000 Now 2,500. She did not reply to that text. I drove by property see sold by listing agent. In truth any one of these buyers could have done the same thing.
Where do I go from here? I can see this happening over and over again. Anyone know where I can find a contract/agreement for my buyers to sign honoring my agreement when I send them the property address

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Your Destiny Is Determined By Who You Choose To Honor


Just noticed my previous

Just noticed my previous posts didn't link to the original posts in reply. Please disregard Eye-wink


Kimfoy, I feel ya.

Kimfoy, I feel ya. Everyone's bound to make poor decisions from time to time. I guess its how we choose to recover from those decisions that's important. All the best to you and anyone else in a similar situation!


TRANSPARENT DEALS

Hello DG family.
I know this forum issue is rather old but, I know fo;ks look to them regardless. So I wanted to bring up a point. I have read quite a few concerns about revealing the to the buyer/or seller the price of the properties. When you approach a seller you have to remember we are in a people business andtrust is "Paramount" And within the first few minute of your conversation with the seller, "I am a Real Estate Investor, my intent is to help you sale your property quickly and a reasonable win/win offer, with the object to put a profit in my pocket and at the same time give you comfortable deal" You have to let the seller know your intent although they already know you of course have to profit. As for the Buyer EVERY BUYER KNOWS THE GAME!!! So there can be no harm in being transparent with them. Their concern is the property meeting their criteria. Period, anything profit outside of that you have to create in stucturing your deal. Be transparent in your deals put your intentions on the table. That's how you win people. There are a million investors. That's how you become the one to come to. Honesty

Nate Wright/ San Diego, Ca.

The only thing gained without effort, is "Nothing"

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The only thing achieved without effort is: "NOTHING"


Well Said!!

Nate, I couldn't agree with you more. A lot of individuals will do anything unethical to put money in their pocket. Always remember that one small mistake and your name is ruin. It takes years to build a name or reputation but seconds or one small mistake and everything is tarnished forever.
Thank you Nate for a well said point which sometimes we forget.


Thanks Nate

Your post was timely! The concept of "transparency" has been on my mind lately and seeing your point just re-confirms!


proof of funds for assignments

If you are planning on assigning a contract.What do you do when the seller ask for proof of funds in order go lock up the contract


Proof of funds for assignments

Hello Tiffany,
You can get a proof of funds letter from Coastal or other transactional funding resources you can find in threads here on this site or searching on google. I mentioned Coastal due to that company being mentioned frequently here but there are others.

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Moving forward daily will get you to your goals!
"You become what you study" - RTK Rich Dad Poor Dad

http://bulkassets.com


Assignments using real estate agents

Hi all, I have a great real estate agent that I get listings from and I want to make an offer on one of the properties and do an assignment. These properties are listed with more than one agent - that in itself is confusing to me but has anyone ever done an assignment on a property listed with multiple agencies? I wonder if assignments work only with FSBO's.

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~~Looking forward to moving forward!~~


Information

Wow, alot of questions are being answered! I am sure I will have plenty of questions as I move along. Want to thank everyone for the help.I feel the support that you all are giving!


Title

Arent titles to a house tied into a particular title company? Or can i go to any title company and say hey im buying a house at this address ___ for this amount $$$ wheres the papers for me to sign...


Process of Assignment Contract on video?

Hi are there any training videos out there that show the complete process of an assignment contract? I am more of a visual learner and I would like to see it done.

Thank you,
StarCreations


Try Dean's Video Blogs off to the left

Hi Star Creations--

There are blogs that Dean has done and some with Matt Larson that are all about Assignments. You should find what you need there. At any rate there is a ton of wisdom on Video.
Here is a YouTube viseo I found of Dean too:

www.youtube.com/watch?v=VAOGHqwwX8w

Good Luck,
Tina

StarCreations wrote:
Hi are there any training videos out there that show the complete process of an assignment contract? I am more of a visual learner and I would like to see it done.

Thank you,
StarCreations

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Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."

"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176


Title Company

I know the obvious question is to ask the title company if they do simultaneous closings, but what are some other questions that should be asked to a title company, so that you can screen them well enough to consider them to be a team member?


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