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?

__________________


Questions!

Hi everybody,

I'm new to Real Estate and the site and I've been reading through all of the material furiously in order to get better acquainted with everything. I'm a recent college grad with minimal starting money and so I wanted to capitalize on Assignments (is "wholesaling" another way of saying "assignments"?) . Anyways, I'm slowly but surely starting to develop a solid understanding of the process, but I have a couple general questions.

1. Assignments alone seem like a pretty profitable business... Lets say I work on assignments full-time and bring in $5,000 worth of profit a week. At that rate, I'm set to rake it about $260,000 a year (AND THAT'S WITH NO REAL ESTATE LICENSE OR ANY TYPE OF QUALIFICATIONS). This seems a little too good to be true and so I'm looking for positive reinforcement! haha

2. That brings me to my second question... Are assignments really as easy to conduct as it seems? That is to say, Is it really as easy as it seems to assemble a list of investors, find these distressed properties, and sell them to these investors (who are more knowledgeable of Real Estate than myself) at a profit?

3. Lastly, assuming I've gotten this far, some other people have been posting concerns such as, "Why wouldn't the investor just wait out my purchase agreement and go straight to the original seller for a lower price? ...to which others have replied, "Because if you have already assembled a stockpile of investors, you can use this as a way of assuring each invetor that if they do not close on the deal then someone else will do it!" I was wondering whether or not creating this bidding war actually works and keeps investors from waiting out your purchase agreement.

I guess I'm just looking for people who have experience dealing with these particular issues and how to solve them.

What are some main problems/setbacks that people experience when assigning contracts?

I'm sorry for the long post, I just really want to get as knowledgeable and confident of the material as possible and you guys have been really helpful so far. Thanks in advance to everyone and I'm really learning a lot from all this material!

__________________

MY DG REI JOURNAL - http://tinyurl.com/m2o5jh


Steve

1. It is very hard to find or assign a deal per week specially at $5,000. You would have to do a very intensive search with MLS listings,distressed homes, and probate properties while getting lucky.It is possible but only for a great/seasoned investor. I have been at this for about 5 months and I am still trying to get my first deal. I would be happy with $5000 a month in the first few years.

2. It is not that easy specially with homes listed with Realtors, alot of them don't like these contingencies and REO's block them almost all togheter. There's ways around these not using "and/or assigns" like double closings and selling your LLC.

3. Most investors don't really know how wholesaling works and if they do, this will be a rare problem. Backstabbing is not a good idea in real estate.

__________________

MARTIN

FAILURE IS NOT AN OPTION!
I WILL NOT BE POOR ANYMORE!


Purchase Agreement & Commission on Assignments

Hi everyone, another newbee and have a couple of questions.

1) when my realtor finds me a property that I can assign, and it is also involving the seller's realtor as well, what purchase agreement do i use my own OR do I use the realtor's purchase agreement along with my Seller's Disclosure Agreement?

2) Also, does the seller pay the realtors (seller and buyers realtors...commission). Basically, what I'm asking is does the "commission" come out of the purchase price between me and the seller?

3) And then when I assign it and let's say I take in a $10K finders fee, do I need to pay commission on my finders fee to my realtor or is it paid thru the purchase price?

Thank you.


Answer your ?s

micisa97 wrote:
Hi everyone, another newbee and have a couple of questions.

1) when my realtor finds me a property that I can assign, and it is also involving the seller's realtor as well, what purchase agreement do i use my own OR do I use the realtor's purchase agreement along with my Seller's Disclosure Agreement? Use your own purchase agreement, Realtor's (or broker's) purchase agreement may or may not have a non assignability clause in their agreement. If you use their agreement read over it carefully in its entirely and ask them explain on sections of the contract you don't understand. Get an attorney to draft you a Purchase & Sales Agreement contract that conforms to your State's real estate laws to protect you.

2) Also, does the seller pay the realtors (seller and buyers realtors...commission). Basically, what I'm asking is does the "commission" come out of the purchase price between me and the seller? Yes their commission comes out of the purchase price between you and the seller

3) And then when I assign it and let's say I take in a $10K finders fee, do I need to pay commission on my finders fee to my realtor or is it paid thru the purchase price? Their commission is paid on the purchase price of property. Unless you agree in advancement to split a portion of your finder's fee or assignment fee with them. Get everything in writing what you will pay them (your agent) for working with you before start making deals.

Thank you.

__________________

"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.


Cash Flow Notes

Hi, I'm a newcomer and am also new to real estate investing.

My husband lost his job in February and I am a stay at home mother of 5. We are existing on my husband's unemployment and my son's SSI. We need every penny to make ends meet, and sometimes that isn't always enough. So I need to be able to do this because my husbands doesn't really think it will work out as well as I tell him it will. So I am DEFINITELY out to prove him wrong!

I have both Dean's books Profit From Real Estate Right Now! and Be a Real Estate Millionaire and have read most of both of them. I am feeling a bit overwhelmed because there is so much to learn and I'm beginning to feel like I'm not reading fast enough to get started. I was interested in assignment of contracts first because I felt it would bring me the fastest results and payouts.

I had recently read up on some information dealing with "Cash Flow Notes" which was mentioned to me by someone who was thinking about getting involved in real estate and thought this would be a good avenue to take. It is my understanding that they are used for assignments as well. Could someone explain what exactly are they, how do I find them, if this would be a good investment and if so, how would I go about doing it? ....needing some direction.

_________________

Chrisspy:

Wisdom is the principle thing; therefore get wisdom. And in all your getting get understanding. (Proverbs 4:7)

__________________

Chrisspy...

Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding. Proverbs 4:7


assigning with an llc

Can anyone direct me to the link on how to assign your LLC? Or if anyone lives in Arizona and is doing assignments can you PM me please? We have been out of the loop for a few months and it seems to be getting harder to assign here.Any information you have we would really appreciate! Eye-wink

Niki


assignments

Can you do assignments with agents?

Cornelius Mitchell Sr.


You can have your agent make

You can have your agent make the offers if that is what you mean.

__________________

Success and Nothing Less!


Assigning to Family

I want to reassing a house to my husband so that we can buy the house ourselves and use the cash to consolidate our debt. I have 2 questions:

1. Can I reassing the house to my own husband?

2. Is getting the house for 110,000 and reassinging it for 150,000 too much? I mean, is the price increase just based on what people are willing to pay or is it calculated in some other way? We just added 40,000 because that's how much we need.

I'd appreciate feedback ASAP!

Thank you!!!


Assigning to Family

I want to reassing a house to my husband so that we can buy the house ourselves and use the cash to consolidate our debt. I have 2 questions:

1. Can I reassing the house to my own husband?

2. Is getting the house for 110,000 and reassinging it for 150,000 too much? I mean, is the price increase just based on what people are willing to pay or is it calculated in some other way? We just added 40,000 because that's how much we need.

I'd appreciate feedback ASAP!

Thank you!!!


Camiagavin

I don't mean to sound rude, but if you get an offer accepted at a low price why would you want to assign the contract to your husband?

As far as your second question goes, that may be a little high. It really depends on how much the house is worth. Asking for a 40,000 assignment fee wouldn't be bad if the house was worth much much more than 150,000. If the house is worth 160 or so and you are looking to make 45000 on it I believe you could try an IEE. IEE's are generally for buyers that need financing from the bank. You are essentially gaining profit by creating the equity.

Example: you believe a house will sell for 160,000. You lock it up under contract for 110,000 with the seller. You then turn around and sell it for 150,000 to make the 40,000 in equity that you gained.

__________________

Success and Nothing Less!


Thank you for your fast

Thank you for your fast response

To answer your question, I'd want to assign it to my husband because we want to buy the house anyways. The assigning is just a way to make some cash on it and consolidate our debt. Our friend is selling it for about 20,000 less than its worth because they have a moving deadline.

What's an IEE?

Wouldn't a high assignment fee not matter since I am assigning to family? Or s there some kind of guideline as to how high it can be based on the selling price?


Need Help

Question: I heard of a lady that has $80k equity. Behind 2 months mortgage payments. The bank will not take back payment without an extra $1,700 for foreclosure paperwork already started. Fair Market Value is $125k to $150k, I will find out for sure when I talk to her later today.
I want to find her an investor that will pay about 20% below FMV and give her about 20% above her equity and write me a finders fee of 10%? Is this right? What should my plan be?


Question: I heard of a lady

Question: I heard of a lady that has $80k equity. Behind 2 months mortgage payments. The bank will not take back payment without an extra $1,700 for foreclosure paperwork already started. Fair Market Value is $125k to $150k, I will find out for sure when I talk to her later today.
I want to find her an investor that will pay about 20% below FMV and give her about 20% above her equity and write me a finders fee of 10%? Is this right? What should my plan be?
I'm not sure how this message service works?


Cash Flow Notes

Hi, I'm a newbie and am also new to real estate investing.

My husband lost his job in February and I am a stay at home mother of 5. We are existing on my husband's unemployment and my son's SSI. We need every penny to make ends meet, and sometimes that isn't always enough. So I need to be able to do this because my husbands doesn't really think it will work out as well as I tell him it will. So I am DEFINITELY out to prove him wrong!

I have both of Dean's books, Profit From Real Estate Right Now! and Be a Real Estate Millionaire and have read most of both of them. I am feeling a bit overwhelmed because there is so much to learn and I'm beginning to feel like I'm not reading fast enough to get started. I was interested in assignment of contracts first because I felt it would bring me the fastest results and payouts.

I had recently read up on some information dealing with "Cash Flow Notes" which was mentioned to me by someone who was thinking about getting involved in real estate and thought this would be a good avenue to take. It is my understanding that they are used for assignments as well. Could someone explain what exactly are they, how do I find them, if this would be a good investment and if so, how would I go about doing it? ....needing some direction.

_________________

Chrisspy:

Wisdom is the principle thing; therefore get wisdom. And in all your getting, get understanding. (Proverbs 4:7)

__________________

Chrisspy...

Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding. Proverbs 4:7


Hello

Hi whats Im in Alabama and looking to get into investing....I currently have no money to invest and bad credit...BUT what I do have is the drive to become successful....I read a little bit about assignment and all....What should be my first step? Set up a business? or what!!!! Do tell my fellow investors!!! Also anyone from Alabama please let me know!!!


334Benben

Your first step should be to build a buyers list that you can assign your properties to. You can build a buyers list by joining your local real estate investing club. There are many other ways as well, but this would be a good start.

__________________

"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote


assigning outside of your local area

Hello all of you "GO Getters" my question is about assigning properties outside of your local area. Allow me to explain my situation; through my job I have unlimited access to potential buyers looking for homes throughout the nation. I'm currently trying to build my team of loan officers,brokers etc to finance these great people looking for homes. Some are investors, some want the american dream. So how can I assign not being in the area? But allowing the buyer to see the home, risking the possibility of the finding out the asking price from the seller or the bank rep/ realty agent... any gold nugget advice for me.


Transparency

When you are going to assign a Deal,ALLWAYS be transparent an never hide anything from the Seller.When you write the contract and put and/or assigns,you are letting the Seller know upfront that you are looking for and end buyer.The first thing you should do is ask the Seller (what is the lowest price they can do for an all cash and close quickly deal).Once you get the set price run your comps and factor in your fee to assign the deal to an Investor.And foremost make sure you have your LLC in place,just in case any legal issues arrise.Keep yourself protected!!!!!!!!

whurndon

H&H PROPERTY SOLUTIONS LLC


Assignment document help ?

Hello to all, I would like to get step by step instructions on how to properly complete the re-assignment document?

I purchased Dean's first book several months ago, and I’m just getting up enough nerve to move forward. I live in the Atlanta,GA area and there are a lot of pre-foreclosures, foreclosures, as well as FSBO's here. I will be starting with the contract re-assignments to get some capitol to do other deals.

Please help??

__________________

2Timothy 1:7 For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind.


how does assigning contracts

how does assigning contracts work. whats the first thing someone has to do.

__________________

brien mellinger


Assigning / rent 2 own?

Hello everyone !!!!!!
I'm just getting started in RE investing.I have been reading and learning from the many past posting,they have been very useful !!I've been reading/studying pretty much all of the classified papers in my area... and I was wondering if properties listed as "rent 2 own" can also be assigned?
Thanks


HELP WANTED!!!!

Ok so one of my co-workers told me earlier today that he was looking for a house that have 3 bedrooms, and 2 baths in the $110-$120 range. So I told him that im doing some real estate investing on the side and I could help him with that, and he was like "ok cool". I was so ready to get off of work and go house hunting. After work I came across 3 different FSBO's and talked to the owners. 1 owner said she had a 2 bedroom 1 bath, and offering it for 125. I told her that i would get bac with her asap. But another woman said that she had 3 bedroom, and 2 baths!!! I couldn't believe that she told me the exact words that I wanted to hear. I got so excited that I didn't even ask for the price that she was offering; instead I asked if I could come and look at it this saturday morning. So here is where I need the help from anyone who is exprienced with doing a "Assignment of Contract". I have a copy of the contract through the success academy but I have never done one so I NEED YOUR HELP!!!! Try to reply back before this weekend I would greatly apperciate it. Thanks.

The major difference between the big shot and the little shot is this: The big shot is just a little shot who kept on shooting ~ Zig Ziglar

__________________

Antoine Paden


frozen stiff

i have someone that came to me with a deal and she calls me at least twice a week to see if i have found a buyer for two apt buildings that has four units each .the problem is ...the person that is suppose to buy the units dont want to let me get the apt under assignment .he just want me to give him the person name and the location of the apt.this person is very motivated to sale but i dont know what to do.would someone please help!!!!!first time ever getting an offer and it just fell in my lap while i was doing action steps from my course on line.

__________________

no comments at this time


BROKER,AGENT, LAWYER

I JUST GOT DONE READING THE BOOK I HAVE A COUPLE QUESTIONS.HOW OR WHO PAYS THE BROKER, AGENT OR LAWYER? WHY DOSNT THE AGENT JUST DO THIS HIMSELF INSTEAD OF WORKING WITH ME? AND WHAT AM I DOING IF THE AGENT IS DOING THE WORK, UNLESS IM NOT READING IT RIGHT. I DONT UNDERSTAND THE WHOLE AGENT THING
HASNT SUNK IN OR SOMETHING. ONE MORE QUESTION IF A HOME OWNER (SELLER)
HAS A REALTOR SIGN IN THE YARD CAN I STILL APPROACH HIM OR HER WITHOUT CONFLICT WITH THE REALTOR? I AM GOING TO TRY MY FIRST DEAL WITHIN A WEEK
AND JUST NEED A COUPLE THING CLEARED UP, IF SOMEONE CAN HELP WITH THESE
QUESTIONS, I WOULD REALLY APPRETIATE IT.
THANKS
ALAN


assignment of contracts in Colorado

Has anyone done an assignment of contract in Colorado? My agent is telling me it can't be done because of legalities. Is this true?


Assignment

Most realtors will make this response because they are uncomfortable with this technique. They may not understand what is involved in trying to do an assignment. So if this is the case they will revert to the only response that they know and that is to inform you that this is illegal. Remember, this is how they make a living, and they don't want to jeopardize their license, that is their concern.

What you should do is contact a real estate attorney in your area. Ask if any of them if they give a free consultation, and go speak with them about this matter. Then you may be able to put the realtor at ease about this technique. If not ask the attorney if they could recommend a realtor to you that can help you.

__________________

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


assignment of contracts in Colorado

Thank You.....


IN RE: Real Estate Investors

I am very interested in finding some real estate investors. Is there any one out there, who can tell me how to find some investors. I would greatly appreciate it,

Thank you,
cashmoney57


web site

go to deangraziosi.com/freewebsite