assigning a deal

You must buy at a large discount! This is the key to using HM!! Period!!

Realtors will use their state approved contracts. You can use your own when working directly with a home owner. (A good idea!) Easy to assign a your own contract!!

You must know which properties to put offers in on! Don't waste your time on properties that don't have the spread you need! Usually they will need rehab in order to get them cheap!

Order Dean's books!!

Go to my website to learn more about offering on REOs. http://www.mdtfcam.com

Michael Mangham
MD Home Acquisitions LLC

That puts things in perspective for me.
Thanks for the info.

just stating to read the book a second times. I am unemployed right now but i am very encouraged about the book and how the knowledge can help me and everybody here. The assign over property to someone is the best way for me so that i can build up some cash and get going. Hopefully u are still on the site for questions i may have. I am in the d/fw area, so there is a lot of property, hope to ask a lot of questions in the next 2 wks have faith

Very enlightening and shows why you need to know the law! But whose law applies if I live in a state different from the state I buy the house in?
Thanks for a great lesson (that's why this post is so valuable to all of us.) Will be watching for the answer to my question. Semper Fi D-LO

The state in which the property is located will control the deal. If you have any questions it would be prudent to get an attorney in the state of purchase to be sure the contract says what you need it to say.

If i am about to lock a property up, an the sell the contract to a investor. What Kind of contract do I use? purchase contract Or assignment contract.

You purchase from the seller with a purchase and sale agreement and then assign that contract to the investor using the 2nd contract, the assignment contract. So this deal requires 2 contracts. One when you get the property under contract, one when you assign the contract to your buyer.
Some other things you need to figure out quickly if you are going to do this deal.
What are you going to do for earnest money? How much earnest are you going to charge on your assignment contract? What are you going to do to make sure your buyer is real? What if he does not show up at closing? What can you do to prevent this? What title company are you going to use for closing.
Concerning your seller and buying. How do you know its a real deal? What does the seller owe, what is the property ACTUALLY worth? How much will any repairs cost?
Most investors like to make a minimum of 15% NET profit. Don't forget what you want to make. Now you know what to offer!

Good luck, you are taking action!!

Michael Mangham
MD Home Acquisitions LLC

wow, thank you, so much !
i have few questions here:
1. once i sing the contract, will i have the rights to show the house?
2. is there any way to form a contract in such a way, where if i don't resell the houses in 30-60 days, i dont lose my downpayment or any percentage of it ?

thank you once again

hello dg family , I need advice how to do back to back closing , and what option contract i need to use to purchase and contract of B to C sale , anyone
" DG Family " Who done This Kind Of deal , I need Right Procedure and response
i would appreciate it or PM me ,,thank you

This is great step by step information. I run across all type of deals daily and just didn't want to tied up for months looking for buyers. The bottomline figure is not going to be as great as actually buying then selling the property but with all the time saved I make it up buy transferring multiple properties.

So I’m trying to make my first deal happen, i have a buyer i been reading the book but i don’t want to make any mistakes can someone tell me step by step how to Lock a bank own property then reassign it to a buyer, anyone that has done that before?

I am aware of the different forms

Hi, I found a property that is a short sale and was wondering if I could get some help with the offer. The house is co-owned with A REaltor so he may not like that I want to assign the deaL. I want to lock it up for 3 years and do it with no money and no credit. Someone please help

In my initial offer do I add that I want to assign the deal. I am definitely a newbie and this will be my first deal and I want to be sure I have the correct jargon.

Homework assignment.
How do you intend to "lock up" a short sale property with no money and no credit? How do you intend to make an offer on a short sale property? You will need proof of funds and earnest money to submit with the offer or when the offer is accepted.
How would you fund this deal?
What makes you think this property is a deal? What are the repair/remodel costs.
What is the actual ARV of the property that you can back up with sold and currently listed actual comps.
Are 99% of short sale contracts assignable? (NO)
If you assign you can't lock it up for 3 years, whatever that means.

You have a lot of study to do before you get close to a pen and a contract!

Michael Mangham
MD Home Acquisitions LLC

I have been reading all of the different questions and answers you all have been sharing with each other. I really think it's great how we all come together to help one enother to get the correct information and confidence to get to that next level. GREAT JOB DG FAMILY!!!!!!!! GIVE YOUR SELVES A BIG PAT ON THE BACK.

BERTHA

I just bought the books and I thought I totally understood until I started reading these posts...LOL Here is my quick question (Dumb I am sure): Couple A own their home and owe $105,000 on it to the bank. The house is valued at say $125,000. They are in fear of losing their home to foreclosure so they agree to sell me their house for $95,000. We sign a contract to sell me the house for $100,000 ($95k + $5k for me). There is still $10,000 left owed to the bank ($105k - $95k). Who pays that $10K?

I totally understand when the amount owed to the bank is less than the buyer wants to sell the house for...but what about when the amount owed to the bank is more than the buyer agrees to sell for?

In the posts here...I have heard about banks "eating" the $10k owed etc... Now I am confused.

In your example above, the seller would have to bring $10,000 to the closing table (not likely)
I think you are a little confused. You may be thinking of a short sale when the bank (lender) agrees to take less for a property than what is owed. This is quite a process.

Michael Mangham
MD Home Acquisitions LLC

That is what I thought...but reading some of these posts had me abit confused. So except for short sales...I need to look for deals where the amount owed is significantly less than the FMV of the house correct? How common is this the case? I am sincerely interested in doing this but I want to make sure that there are actually deals out there to be had. It seems like if there is alot of equity in the house...it would be easy to sell. So, where are we supposed to find the deals?

you need to look for a better deal... or you could find a buyer to 'lease to own' the property in your example above, and put 10K down deposit, pay the mortgage plus more for a set term; and then buy it from you once they're able to...
it's about thinking creatively...and making sure you do your due diligence about the numbers...if they don't add up, move onto another deal.

Happy investing!
Valerie

Hi, I was wondering if anyone has done assignments in Texas. I keep getting information that it is illegal to do assignments in Texas. If you are doing these deals in Texas please let me know what I have to do in order to be legal. I am just learning and want to do assignments to grow my cash to buy houses.
Thanks

My ex-wife is a real estat agent and is willing to help me with finding buyers who have paid cash fot their properties so I can do some research and start a buyers list! She is also going to start a couple filters for me and email me REO's and multi unit properties!

My question is what other things can she do to help me find and locate good deals? She is not an "investor" savy agent but a tradional agent!

thanks

As I understand it I can build a base of buyers and find properties that suit their conditions and make arrangements with sellers to purchase their properties for a certain amount of money and make a purchase agreement with a and/or assigns option and then offer that contract to my buyers. When they want it they sign the assign contract form that has my contract with the seller listed and the fee they are paying to purchase the contract. Then the buyer does the closing and I am paid out of the closing costs. If there is anything wrong with this summary, let me know. I intend to begin doing this immediately and would prefer to have as many things going right the first time around as possible.

The difficulty with your summary is that if your contract fee makes it to closing and the buyer is using conventional financing such as bank financing you may, and I said may, find that the closing falls apart because the buyers financing does not want to pay the "assignment" fee that you have included. If you work with cash buyers you will find that this does not often happen. You will often use an assignment contract that has your fee. This fee allows you to get paid even before closing if you would like.

You will find that assignments can be done in Texas. The biggest part of the assignment is the Title company. Each title company will deal differently with assignments and you are looking for one that specializes in assignments. I have a title company out of Dallas that handles these. I am sorry I do not have that information because it is at the office and I am typing this from home. If you PM me I will try and get it to you.

thank you for the helpful information, but I would like to know when the best time would be to contact a realtor. I'm assuming that it should be after I find a deal. And will this cost me anything up front? or will the realtor be willing to be paid when the house is assigned?

I'm sure they meant ESCROW ..... lol

You should try Stewart Title out of Houston - I was going to use them once, as they were the only title company that said yes after calling a ton of 'em. Or, try one of the small mom n pop title companies.

Also, how do you market to landlords who buy properties?

When first locking up deal with the seller, which exact contract should I use. I looked at the ones here, but if anyone has any advice from experience I would really appreciate it

Someone help asap. I have a REO property in Milwukee. Am working with a guy that sells these for some agency(not a realtor). He email me a list of houses to sell. I have one that I think I can sell. I may have a buyer. All I need to do is assign a contract and have proof of funds. I have to have a end buyer to get proof of funds for the A-B and B-C transaction. I dont have the proof of funds until I find a buyer so I cant assign the contract. I dont want someone end buyer to steal my deal until I have a contract. How do I get this under contract without loosing the deal and let the end buyer look at this property which I wont be able to see