assigning a deal

You are buying at 89.2% of FMV. I don't see the deal here.

I am not buying, i am trying to do a finders fee. I am very confused on who supposed to sign what. I learn by hands on or someone is walking me through it once or twice. The seller is going to pay me $1000 or $2000 for a referral that closes.

Shonda

I obviously wrote the information as a broad response. There are states that have different ideas on recourse vs. non-recourse.
The point of the information was to state that banks most likely will not do any recourse BUT the bank can and will if they feel like it, and, yes, if the state allows full recourse, partial recourse or none. I also wanted to give a couple of the ways banks can give recourse.
I do appreciate that you helped me point out the differences with the states.

Shonda,

This is sounding more and more like you acting as a realtor (without a license?). What you want to do is write up a contract on the property so that the buyer is Shonda and/or assigns. Then assign the contract to the BUYER for your fee ie the BUEYR is paying you for signing up a great deal that they could not have found on their own.

Hope this helps...

Thank you,

This information do help me. Thank you.

So, are you saying like for example. If a seller is selling there house for 100,000 and i talk them to letting me reassing for 30 to 60 days and i talk them down to $80,000 and find a buyer that will buy the property from me for 85,000

Is that how i supposed to do this?

shonda listen, if the seller is selling his property for $100,000 and you negotiate to $85,000 and the property is WORTH $100,000 then you would have the seller and you sign a purchase agreement with an ASSIGNMENT CLAUSE, then RE-ASSIGN to another buyer or investor for $90,000 or $95,000. make sure in the agreement you put the closing out to @ 60-90 days if possible.CLASS DISMISSED,SULLY.

I'm a bit confused about what I need to lock up a deal to reassign it. Do I need a contract of sale that has thirty to ninety days along with an assignment clause, a penalty clause and a first right of refusal. Don't I need some type of financing set in place for the seller to even consider signing anything.

You are making it way too complicated. You need a purchase agreement.

At the top the pre-made form has a spot for Purchaser (Buyer)

Purchaser: Monique and/or Assigns

That's it. As for the seller.. it depends on how motivated they are.

Sully, Thank you, you always been helpful

Thank you,

Shonda

Hi Sully,

I looked in Forms and Docs, the words are different.

Is Agreement To Purchase, is it Purchase agreement?
Is Assignment of Contract, is it Assignment clause?

Thank you,

Shonda

Where r u?

hey shonda,use the purchase agreement and an ASSIGNMENT CLAUSE, to do a RE-ASSIGN,YOUR HERO,SULLY.

The short sales require alot of paperwork. The most difficult one for me would be the HUD 1 settlement statement form. THere are sites that can assit you with the first ones you process and then you will be able to do them yourself. THe rest of the documentation is pretty easy. Letter of hardship, Last 3 months bank statments, last 2 yrs tax returns with all schedules and W2's, if realtor driven; copy of the listing agreement, BPO (brokers price opinion) with comparables, Authorization letters (3 originals) Contract of sale with short sale contingency, retainter and disclosure, borrowers financial statment (3). banks will go 20% from mortg and you may get back repair money at closing if bank allowed prior to closing. THe bank usually pays 3% for the buyers agent and sellers agent.

The short sales require alot of paperwork. The most difficult one for me would be the HUD 1 settlement statement form. THere are sites that can assit you with the first ones you process and then you will be able to do them yourself. THe rest of the documentation is pretty easy. Letter of hardship, Last 3 months bank statments, last 2 yrs tax returns with all schedules and W2's, if realtor driven; copy of the listing agreement, BPO (brokers price opinion) with comparables, Authorization letters (3 originals) Contract of sale with short sale contingency, retainter and disclosure, borrowers financial statment (3). banks will go 20% from mortg and you may get back repair money at closing if bank allowed prior to closing. THe bank usually pays 3% for the buyers agent and sellers agent.

The short sales require alot of paperwork. The most difficult one for me would be the HUD 1 settlement statement form. THere are sites that can assit you with the first ones you process and then you will be able to do them yourself. THe rest of the documentation is pretty easy. Letter of hardship, Last 3 months bank statments, last 2 yrs tax returns with all schedules and W2's, if realtor driven; copy of the listing agreement, BPO (brokers price opinion) with comparables, Authorization letters (3 originals) Contract of sale with short sale contingency, retainter and disclosure, borrowers financial statment (3). banks will go 20% from mortg and you may get back repair money at closing if bank allowed prior to closing. THe bank usually pays 3% for the buyers agent and sellers agent.

where can i get the HUD 1 settlement statement forms? Also, what are the names of the web sites that will assist me?YOUR HERO,SULLY.

Are you going to do your own closing?? Title will fill those out for you... I suppose they would send you a blank one.

the title company will fill those out for me?

You should ask for (demand!) a preliminary one prior to closing. I have never seen a Title Company get one right the first time.

Then they will send out a final copy after closing.

A HUD-1 is simply a double entry ledger showing money in and money out for both the seller and the buyer.

(ie In a typical transaction, at the bottom it shows proceeds TO the seller from the sale and how much cash the buyer will have to bring to closing in order to buy the property.)

They used to show both the seller & buyer side on each. Now, up here at least, they only show your own side and the totals. Is that typical?

I think so (standard but not set in stone). The buyer gets their copy and the seller gets theirs.

over here there are some title companies that will show you your side but want a waiver signed by the other party to see theirs.

What are the things to ask the seller before you sign the agreement to purchase and so i can reassign the property to another buyer or invester?

What is all the information i need to know about a property to know if it is a good deal?

Please somebody answer

thank you

Shonda

Have you found any helpful information in reading through the forums? I think there are several places that have some answers to these questions. I'm sorry I can't help you on the assigning issue, I've never done one, but I know that it's been discussed a lot.
Go to dgadmin's forum of FAQ: Answers To The Most Asked Questions - Start Here, under Real Estate Investing: Buying Foreclosures, REOs & More
That might help for starters.

Good luck, and don't be afraid to ask again. I think we're all learning new things from each other every day.

Rina

I wouldnt ask the seller anything pertaining to me assigning it. I mean if he/she notices the the contract reads the buyers Darren and/or assigns, then I will explain to him/her that it just means that Ican later put it in my companies name or in my partners name.

Now to know if you have a deal....run the numbers...cost of home, buying closing cost, holding cost, rehab costs, selling closing costs, realtor costs...and finally ARV. If all the costs are below the ARV by 20%...its a deal, and I think you should be able to assign it for 2-5%.

anyone else agree...disagree?

D

How do you determine what your holding costs, selling costs, closing costs, realtor costs would be in order to run the numbers to determine if you have a deal or not? And aren't most looking for these costs to be 30 - 35% of ARV nowadays?

If you are just going to assign then all you really need to know are FMV and purchase price. If you are buying at 60-65% of FMV then you are probably good unless the place is a tear down.

Some idea of repairs would be good so at least you can tell your investor.

Holding costs shouldn't factor in. That is a cost for the investor.

i'm gonna have to agree on that one...SULLY

wouldnt the investor be more inclined to work with you if you gave him/her all the numbers (a package), rather than just FMV and some repair costs. They expect you to do all the leg work to earn your assignment fee.

at least the ones I have worked with to assign to.....and they so far have always said "what about my carring costs, I am going to have to get it at x amount not what your asking"

thoughts?

D

What ARE his carrying costs?? What is his cost of capital?? I have no idea...

How long will he have to carry it? I have no idea.

Does he want all cash or will he carry paper? That will affect how long he has to carry the property.

I am offering him a property below market value. I can tell him the price. I can tell him FMV.

I can give him a rough estimate on repairs- at least what needs to be done. Pricing is a different story. Maybe he has a crew and can get a better deal on price and matrials than I could.

Whether the deal makes sense to him or not is up to him.