assigning a deal

"Real Estate Investing Pros" On an upside down house can I submit an executed offer to the bank for a low price and get it approved for a short sale and then assign the deal to another buyer. Does the bank allow assignments on short sales? Or would I have to buy and fund the deal and then resell to someone else like a back to back escrow????

Hello everyone I'm new to this and I need to know this,

If I find a FSBO property what do I do?

-Do I print out the Assignment of Contract Foem from here, if so then do I send it to the owner of the property or fill in the rest myself wih his/her giving information?

-Is this the only form that I need to have or am I suppoe to have other documents?

-Am I suppose to ask for certain paper work from them?

-Then after I have to FSBO on assignment what do I do?

I understand the concept of doing the assignment but puting in use there seems to be missing information that I need to better help me

Thanks All!

I rarely hear people discuss both ways to get paid on an assignment deal, so here they are.

1st- when you assign the contract over to a buyer, charge them the fee right then for the contract. This means you get paid whether they buyer actually purchases the property or not.

2nd- you can follow the property through to closing, have your name put on the settlement statement (HUD-1) and get you check from the closing company (title company or attorney). In this case, you will not get paid if the buyer doesn't actually purchase, but you typically make more money per deal since the buyer doesn't have to come up with it out of pocket.

Good luck on your next Assignment deal!

I too live in Southern California and would like to know PRONTO if we are able to do Assignments. Can someone shed some light on us over here quick because I'm working with an FSBO as we speak! Thanks guys! Judah

_________________

"We are all faced with a series of great opportunities
brilliantly disguised as impossible situations."

does anyone know how to negotiate deed in lieu with cash for keys?

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unless you stole the house - funeeeee!

A seller contacted me through my CL ad and stated he had an agent and was selling his home 85,000 under FMV. Said if I was interested let my investors know.

Question: How would I grab an investor on this deal without losing him to the agent from viewing info on the house? I don't have a locked contract at all but is there any way to get credit for this while passing it on to an investor/buyer? Or am I out of luck with this one? Any help on this is very much appreciated!

Judah

If I am working with another wholesaler who has the property under contract but we came upon an agreement if one of my buyers purchases the property I get paid a certain amount. How do I legally tie this up where I don't get screwed out of the deal. I seen a contract on this website called the Bird Dog Contract but, I'm not sure if this is the best route. Please advise anybody with experience with this.

Thanks,

Matthew

hi

i found few deals but i m a new comer and totally new to this field. What should i do now..get the offer and then find buyers rite ? how can i do assignment deals..any help would be appreciated..thanks

Everything i read about assigning contracts makes it seem so easy. But what are the best ways to actually find these deals? How are you allowed to make these deals without being a real estate agent, is it just a matter of writing up your own contract between to people (seller and buyer)? also when you agree on a contract are you obligated to take posession of the house if you dont find a buyer to assign it to? So basically what im gathering is that you are taking place of an agent (getting the person a certain price for their house) but also tacking on a profit when you assign it to a third party?

It all just seems much easier said than done. So basically any regular joe can do this process??

To look for deal to assign should i focus on finding houses that are FSBO? Also how to i make sure i dont get stuck with the property? And when it comes to closing cost and other cost, i am unsure of what to expect to pay or what to account for? When breaking down you numbers its much more complicated than just saying im buying a house for $200,000, and selling it for $250,000, so i make $50,000. What costs should i be aware of and take into consideration besides repair costs.

Thanks for the warning. If we are new we need to pay close attention to things like this.
"Good Someone please correct me if I'm wrong, but I think that you would want to talk to the bank about doing a "short sale". My understanding is that this is when the bank agrees to reduce the amount due on the mortgage, and will write off, or absorb, the rest. The homeowner, or the two of you together, would need to get the bank to agree to this before they "sell" you the house for $350,000, or it seems that either the seller, or you, would still owe the extra $50K. Does that make sense? (If I'm wrong about this, anyone, please correct me right away. I don't want to confuse anyone.) "

learning myself,
Rina

Thanks Rina
Valerie

What is the cost of a title search and what costs have you incurred - up to this point.

Thanks!

MeIn-AZ

is these numbers still good today 09-14-2010?

I am a licensed Broker and am new to the SFL system. I recently joined a real estate investor group and was told I cannot as a licensed agent do a wholesale deal. I am so confused on this, I have watched Deans DVD's that came along with my SFL system and not sure why I could not do this. I would like to start investing but wholesaling to begin with. Find a motivated seller, put the property under contract w/and or assigns and find a buyer/investor to purchase and get paid on putting the deal together. This would be for properties not listed in the MLS. I know I have to disclose I am a licensed Broker if I were to put a property under contract in my personal name but please tell me this - my husband and I are setting up an LLC and want to use the LLC to put properties Under Contract with, can I do this if I am on the LLC. Please advise. . . .

assigning become complicated and hard?

when assigning a deal how involved are you in the closing? i mean is it as simple as getting a seller to agree on a contract with the assignment clause and then finding a buyer, and does the buyer just cut u a check for the difference. Or r u part of the closing and are you involved with a title company or going through escrow. can someone go into more detail on the phases of closing a deal.

I'm wondering the same thing.

This is exactly what I wanted to know! I'm not getting the connection between reassigning and getting your money vs the seller getting their money.

HELLO EVERYONE I ALMOST HAD IT BUT MAYBE IM GOING AT THIS ALL WRONG I TOOK A PROPERTY AND I STARTED TO ADVERTISE IT AND I GOT A HIT AND THEN THEY WENT AROUND ME SOME HOW AND I GOT NOTHING MAN WHAT HAPPEN HERE HOW DO I MAKE THE MONEY HERE IN VAGAS REALESTATE AND KEEP THEM FROM POCHING MY DEALS I HATE THAT

2nd- How is your payment justified to the closing company? I'm not understanding how I would be involved in the closing in this respect. Who is responsible for having your name put on the settlement statement(HUD-1) and what would be the qualifier next to your name?
Thanks for your help

It really is easy to do! The hard part is finding the DEAL!
To prevent any one from circumventing us we always get the property under a assignable contract. Otherwise you are not assigning, you are bird dogging!
It works like this in Colorado.
1. Get your assignable contract signed by your seller and yourself at the price you have agreed on. Make sure your seller understands you do this business to make a profit! You may close on it yourself or flip it to a buyer for a profit.
2. Find a buyer and assign your contract with the seller to your buyer using your assignment of contract contract. It will state what the amount is on your contract with the seller, how much your assignment fee is and the total cost to your buyer.

Example: You get the house under contract for $100,000. You the assign that contract to your buyer for a $10,000 fee. The assignment contract will have the purchase price At $100,000, the assignment fee $10,000 for a total price of $110,000.

Take these two contracts to the title company and set up a closing date. The title company will cut you a check for $10,000.

The paperwork aspect is actually very simple, getting your fee at closing is very simple. The hard part is finding the deal that has the good numbers that allow an assignment! That is what everyone should concentrate on! What is ACTUAL ARV? (not what a website says!)What are the accurate rehab costs? What are the closing costs? Picking the right properties to make offers on. Most of the time a nice house will go to the owner/occupant, you can't compete with them. The houses we flip ALWAYS need work and are in distressed situations.

Realtors do this but must inform their sellers and buyers that they in no way represent either and they are not acting as a realtor, rather they are acting as an investor.

Go Find Some Deals!

Michael Mangham
MD Home Acquisitions LLC

P.S. Its a good idea to know how you plan on having a buyer lined up in advance!

Great information! Thanks Everyone BUT BELIEVE IT OR NOT I STILL HAVE A QUESTION!!! Well maybe two! lol

1. What is the difference in the Offer to Purchase and the Agreement to Purchase? And which one stands as the Contract?

2. If I get my offer accepted using the Offer to Purchase then do I re-write the same stuff that was agreed upon in the Offer to Purchase. Do I re-write it onto the Agreement to Purchase then I sign it and then have the seller sign it as well? Why not just have one form? which does what? and please 4give my ignorance here but after the seller and I have come to an agreement or the seller accepts my offer, then what? I know I market it and all that but what do I do with the paperwork? Do I have to then pay an attorney or a title company? or exactly what do I do with an accepted offer?

Both of these work well, it's not one or the other. Sometimes investors may not want to include "ans of assigns" on the 1st page of a contract in case it throws off the seller (even though it shouldn't). In this case a person may want to include a clause later in the contract or on the addendum page giving them the right to assign the contract.

where do i find the forms to use? i haven't been able to find them on DG!

Hello I 'm interested in doing assignments but I am a little confused about who can handle the paper work if not the title Company?I've read Dean's book and it is advised not to let title Cos. handle the assignment deal .If not the title company then who? G.P.

or a real estate attorney.

By the way I'm a newbie.

1.Does every seller require the buyer to put up earnest money if assigning the contract to another buyer?
2. In other to avoid paying the finder's fee, cheating investor buyers can just take the chance and wait for the contract to expire and then go to the seller and buy it at your price or even cheaper. Can we avoid this from happening?

Would like to make offers.
I have:
No money.
No credit.
I see possible deals in my area.

I see many contracts floating around on these forums.

Do I make my offer using one of these contracts or do the realtors have their own "standard" contract they want used?
Will they require a funds letter with my offer?
I would like to assign.
Should I put ..."and or assigns" on my offer? I live in VA.
Should I include several (easy-out ) contingencies?

If I cant assign:
Is it possible to get 100% financing from a HML to purchase the properties?
Is it possible to make money this way, there interest rates are usually high?
If they only finance a % of FMV then how do I make up the difference?

Trying to get a deal under my belt so I can afford coaching.
As for now DG forums is all I have.
Any help would be greatly appriciated.