Assigning question

On this deal, you need to get the properties under contract with the seller for $168,000 with your "and/or assigns" clause.

You price the property to your buyer for $186,000 (which you have). When he decides he wants the property, You have him give you a cashier's check for $18,000 to take over your position on the contract--which he will do by you filling out an assignment agreement and you both sign it. In my Assignment Contract it also states that the assignment fee is non-refundable, unless the seller backs out of the deal. I usually have them (buyers) meet me at their bank, where they can get a ck and the bank should have a notary. I have the Assignment Agreement signed in front of the notary and notarized. It does not HAVE to be notarized, but it just makes everything feel more official. If you put up any EMD, you get an additional check from the buyer replacing that money to you also. Seller is not involved in this part at all. After signing, you take it (Assignment Agreement) to the title co (or whoever handles the paperwork for closings in your state) and you are finished.

Some wholesalers do not collect their assignment fee until closing, but by getting it upfront, your buyer is less likely to flake on the deal. He has too much skin in the game. If the buyer refuses to pay you upfront, don't lose the deal over it but try to get it.

Also, in this type deal, where you have a contract on the property, you are NOT a birddog. You are a wholesaler. A birddog finds a property for someone but does not negotiate pricing. He collects a fee for finding the property and often finding info on it, but it is up to the buyer to do all negotiations. That is the difference. Also, a BD makes a much smaller fee than a wholesaler.

One problem I am seeing here, is that you should never quote a price to your end buyer until you have a signed contract with the seller. If the seller counters with $186K, how can you change your price to your end buyer? Also, I am hoping you have not disclosed the location of these props to the end buyer yet or he can just go around you if you don't have a contract and deal directly with the seller himself. There is nothing to protect you from that. Tie it up first!

Hope that helps.

Karen

Hey everyone my name is Gabby, I'm new in real estate investing, and extremely scared of this new endeavor to be honest, lol. I think I spotted a good deal, but I'm still not sure of how starting to take action and see if it's profitable. It's a pre-foreclosure, and to my surprise it has positive equity. I have no money, no credit and most certainly no experience. I would like to know how can I determine what a good offer to the seller would be, to lock up the deal and assign it to another investor, or even find an incentive for the seller to do the deal. Please help meeee!!!!

I'm still pretty new to all this. Me and my partner are in the process of buying a mobile home. We are giving a down payment and paying the rest in payments but we would like to do a sandwich lease on it. We already have a person who is will to give us a down payment and monthly payments of more then what we will be paying the current owner. Where do I get a Sandwich lease done. I went to a attoney but he was no help. Please help.

Hi,
First off, I would hope you were dealing with the right kind of seller, one who is motivated to sell meaning they need to sell and not a seller who wants to sell.

The seller who needs to sell will almost always be open to any strategy that gets them out of the deal. A seller who wants to sell is not for the most part going to be open to anything that does not get them the price they feel they are entitled to get.

If you are able to build a rapport with the seller and get to their bottom line number than anything above that number and what you make on the deal will not be a deal breaker.

Keep in mind that if they could have sold the property for top dollar they would have already sold it before you came along.

If you want to really get a sellers negative attention, try milking the deal for a big paycheck.

I would rather receive a $3K to 5K paycheck several times a month than one $20K paycheck once in awhile.

Ok, understandable. Now I know that for pre-foreclosures to be really profitable, have to have a substantial amount of equity. In this case, the house has some equity, not too much, but compared to everything else I've found, it has some equity, and it's occupied. I would like to know how do I approach the seller in terms of an offer. I know it has to be reasonable, but how do you determine what a good purchase offer is to lock in the deal? Please help me I'm stuck here.

gabbita wrote:

Ok, understandable. Now I know that for pre-foreclosures to be really profitable, have to have a substantial amount of equity. In this case, the house has some equity, not too much, but compared to everything else I've found, it has some equity, and it's occupied. I would like to know how do I approach the seller in terms of an offer. I know it has to be reasonable, but how do you determine what a good purchase offer is to lock in the deal? Please help me I'm stuck here.

My question is do you have any buyers. Having a buyers list and knowing what kind of deals they are looking for would help you know if this deal would work. For example if you have a buyer that wants to make 20K per deal and is willing to do some lite rehab and this house needs work but only has about 10K in equity it is not a deal that would work if you offer the seller his payoff amount. There are other options like a short sale, but again what do your buyers want?

Ok... (deep breath)
Let me make sure I understand this and please help if I don't...

So you're really not losing the $6k and you're making money on the front and back end??

You do not necessarily need an attorney. Just use a lease option contract with clauses that are favorable to you the seller.

Hi everyone,

I am enrolled in the fast cash course currently and am enjoying everything very much. I am having a lot of trouble finding a closing agent who is comfortable and/or knowledgable about assignments or double closings. Has anyone done this kind of work in Chicago and surrounding metropolitan area that can refer me to a good closing agent for this kind of work? I have called 7-8 people and no one has any interest in these kinds of deals.

Thanks,

Mir

Since the subject is ASSIGNMENTS, I have one, I have another CASH Investor, he said he will pay the Finder's FEE, but my question is :

How do I present the property/ deal to the buyer without him stilling the deal and not get paid for finding it.

This would be my 1st time assigning !!

Thank you for any Reply to my question

Hi,

If you place the property of interest Under Contract (Purchase and Sale Agreement), then that Cash Buyer can not go around you and purchase the property from under you because you placed that specific property Under Contract by using the Purchase and Sale Agreement. The Purchase and Sale Agreement should specifically state that while under contract, the Seller of that property can not negotiate with anyone else but you!

Hope that helped.

I just email over a blank Confidentiality and Non-Circumvention Agreement and have the investor sign it. Once signed, I fill in the address information, sign it, and email it back to them. Now we have a two year agreement where they can not go around me for the deals. Works like a charm.

Wendy

I just attended the 3 day class event in Denver this past weekend and I'm trying to get things started. I'm not 100% clear on where or how to start but I am very excited to do so, specially having access to the insiders cash funding which is a huge benefit. I'm wondering if there is a DG student in the Denver area that has a few deals under their belt and is willing to mentor me and maybe let me tag along for a wholesale deal or two so I can see how it's done in the state of Colorado.

JDoest the title company want a cashiers check or something that's like cash. Are they going to take a check?

Hello everyone and hope that you all are moving forward. I have a dilemma that I'm not sure of here in Greenville, South Carolina. I've just submitted my first 25 bids to 25 different properties that if accepted, they would be a real blessing to everyone involved...especially the cash investor who would buy them from me. My agent told me I needed to show "PROOF-OF-FUNDS" and make out a check for earnest money for the properties. I don't recall reading anything about showing a POF when you're wholeselling. I need to get back to her by this Friday, the 21st of June 2013. Also, has anyone heard of the $10 application as earnest money for placing properties under contract? I would appreciate any experienced and/or knowledged help I can get. I through reading for now...I'm just working the program and making mistakes and learning as I go. Thanks, Steve

That is so true! You could look into using transactional funding where you rent money for a day to be sure your closing happens as scheduled.

ALTHOUGH THIS IS A VERY OLD THREAD, FOR THE SAKE OF CONTINUITY I WILL ATTEMPT TO ADDRESS THIS QUESTION.
For newer readers: The 4 steps listed are pretty basic but, need some minor tweaking
Tweak: Just for the sake of streamling the process it would be wiser to first, establish a list of buyers and know each buyers preferences. (ie..what location they buy in,type of properties, price range, profit numbers, condition likes dislike etc..)
When you have a good grasp on your buyers list, you can look for homes that fit the buyers or you can look for a variety but knowing the buyers preferences you will know who to send your contracts to. (understanding your buyers needs minimizes waisting a lot of time)
The buyer will be receiving the same contract you initiated the sale with as your selling the contract not the property. Therefore the numbers have to be spot on and make since.
*It makes since to have an established LLC in place and purchase in the name of your LLC and in turn sell that LLC to the end buyer - Just in my opinion a more professional approach.
The assignment process should be simple if all of your ducks are in a row.
Find a good REA and they can help you run the numbers also you will need them to gain access to properties. Can't stress enough, the value of a REA. GOOD LUCK

There is a very real probability that we've just gotten our first property. It is a SF 3/2 Short Sale. We are trying to figure out if a Double Close is legal in Colorado and how to go about it but someone suggested selling our LLC with the property.
I've searched for the info on how to do this on this site and remember going over this briefly during some of our training.

If anyone out there can advise me on how selling our LLC w/property can be done and how to do it we would greatly appreciate it.

Thanks in advance, so excited!

Hi DG family..
hope everyone is doing well and staying positve. Im in the learning process but have a realtor who wants to work with me..she is asking for proof of funds with offer on a deal. I plan to assign this property so what's my next step...does the buyer/assignee submit proof of funds or is this where a transactional lendercomes in? How does that work? Any response is greatly appreciated. ..thanks!

Good question & Good Answer - but....
What about a seller (i.e. Bank owned property) where the seller is looking for an all cash offer and wants all cash no financing contingency in the offer?
A. then you would need to find a cash buyer for the double close/assignment.

- think about what if? - and what is possible rather what is not

-KevinMA

I am ready to make assignment(not IEE) offers on two properties & I think I have all the contracts I need for the sellers (Discharge of Agreement of Purchase Statement, Assignment of Real Estate Purchase and Sale Agreement, Property Disclosure statement) Is there any other papers the sellers needs or contracts that they need to sign?
My other issue is I can not figure out how to fill out the ASSIGNMENT OF REAL ESTATE PURCHASE AND SALE AGREEMENT, is the seller (the one who owns the property now) the Assignor or the Assignee.
Do I need to also fill out a purchase agreement as if I was really buying the property if I am using the ASSIGNMENT OF REAL ESTATE PURCHASE AND SALE AGREEMENT?
I have been at this for a week & every time I think I have everything straight, I start questioning myself & mixing things back up. I am so worried I am going to make a big mistake.
Pattison

You're preying on people and don't even know what you people are doing. Find a poor person down on their luck and try and snatch their house from them. Shady ass ****. Just as much of a scammer as dean.