assigning a deal

Where is said databases, and how much does it cost?

I am starting out in realestate wholesaling. I want to assign properties with cash buyers. I would like to know how do I go about getting cash buyers? Can someone please help the newbie. Thanks

Do we look threw real estate agents, or are we looking for private individuals?
If we are looking with agents what do we stay away from? VA and HUD will not work? Thank you for your time and insight, wishing you wonderful in every step of your journey.........Kathleen

Hello, I have a neighbor that is selling his house on a short sale. Where have you found some good investors? How long have you been doing this? I am ready to get my feet wet. Thanks in advance.
Steve

The first thing that has to be done is to get the short sale approved by the bank (in writing). Once the short sale is approved and you find out how much less the bank is willing to accept than the house is worth, if there is a difference and if they will, it will be easier for you to find an investor. Short sales can take a really long time to get to closing, but they can also be a good deal. Of course, it may be easier to get the bank to cooperate if funding for the short sale is approved before the short sale, too.

For instance, it's a lot harder for a bank to say no to a short sale if an investor is standing there with cash or sufficient enough credit to pay off the loan on the spot.

This thread started out to be about contract assignments. I think that leaves out short sales. Your best assignment deals come from working directly with a motivated seller. Getting the property under contract using your own assignable contract. NO AGENT INVOLVED. The second best way is through an agent offering on properties listed by a MOTIVATED individual. You will need an assignable contract.

Trying to assign REOs, HUDs and short sales is pretty much a waste of time.
Deed restrictions and seasoning issues are making it harder to use no money down wholesaling techniques on these types of deals also. Old strategies don't work or are getting harder and harder to use.

We still wholesale REOs, short sales and HUD properties with ZERO money out of pocket all the time. We just use the latest technique. NEVER seen it mentioned anywhere.

Assignments directly with the motivated homeowner is by far the easiest no money down strategy. New folks should concentrate on doing those.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Hey Anita what bank in VA accepts assignment contracts?

One database is "Prop Trend", another is "Investor Pipeline". You can call the advisory line and we can direct you to those that can give you more information and get the products to you if you are wanting.

Cash buyers can be found in several ways. Here is a list of some of my favorites:

1) Bandit signs.
2) Get a good Realtor to give you a list of property addresses purchased with cash. Take the list to the county recorders or county clerks office and look up the buyer.
3) Google Maps search.
4) connectedinvestor dot com
5) Real Estate Investment Clubs
6) Foreclosure auctions. The buyers ... well they are the buyers you want.

Properties that you can assign are often those that are not associated with the banks or the government. You are correct that VA, HUD, HomePath are not assignable. Bank properties can be assignable but they do not like us to assign the properties. They like to know who the end buyer is.

The properties that you focus assignments on are not bank owned, bank involved or government involved.

If you work with bank owned or government involved I suggest that you do a double closing.

The difficulty of a short sale is that they take forever to complete. I have an offer on a short sale from June. We are not in June...we are in December. For most investors they will not put a lot of stock into a short sale unless you have the property under contract from the seller and the bank.

I suggest that you get this done first. You will also find a few posts ahead of this one I give some ideas on finding buyers. You can also search for the information. It is all over DG.com

Often time "assigning" with banks and other government agencies deal with land trusts or LLCs. You can "assign" underneath these entities. This is how most people are still assigning these deals.

I my oppinion the easiest way is to offer on property using a land trust. When the offer is accepted you can transfer the benefial interest to the person that you are "assigning" the property to.

Do you fill these out with the selling realtor or your attorney?

A assignment is a very simple process! all you are doing is finding a great deal and getting it locked up on paper! Meaning you agree with the seller to purchase under certain circumstances (Price,&Terms) you get a signed contract and all you do is find a buyer before your contract ends for more money then what you agreed to buy it for.

Then sell him the contract (Assignment)
Very simple.
Best of luck

I've started wholesaling in Arizona by accident (as odd as that may sound) I am working on an 11 unit condo deal and need the name of a good mentor and/or attorney in the Phoenix area. Any one working in the area available for some Q and A?

I have several deals that I would like to write up but not sure if I can do this the way I want ... some real estate brokers are being a little hard headed. I am in Canada, and want to invest in Florida, and want the deal to state that earnest money will only be provided after conditions have been met ie inspection, home inspection, partner inspection and approval. Not having too much success, I understand the broker wants to make sure the deal goes through but some help on this earnest money is stopping some very worthwhile deals, anyone have any ideas or suggestions? Thanks

Hi, I am in Phoenix,and I know of an attorney that is going to help me out with my LLC. pm me. I am just startine out and I have 3 investors.

I just had to send this to a selling agent so she would place my offer, She has never heard of an assignment of contract.
An assignment of contract is this:
- You find a property where the seller is motivated.
- You put the property under contract The assignment clause should say "This contract is assignable.

Then follow it up with and/or assigns after my name."Earnest money deposit(s) to be due after inspections have been approved by the Buyer."

- You assign or in other words sell the contract to a new buyer.
- At the time of assigning you get paid a profit for the sale of the contract.
- The new buyer literally uses your contract to purchase the property

Most contracts permit an assignment as long as the other party to the contract approves the assignment.

And many contracts require the other party to approve of an assignment as long as the assignment is "reasonable

," meaning that the assignment won't jeopardize the security
of the other party or increase the other party's risks."

So in conclusion, what I have shared with you is that once you have a property locked up, all rights of the contract is considered

"property" and therefore under your control. Therefore you reserve the right to do what you want with it. Assigning your right to purchase the property
once it is locked up is your right. (lawyers.com)

“When we have the right to buy (purchase & sale agreement from the seller to us), we have the right to sell” Attorney William Bronchick – real estate lawyer and also investor.

Make sure you put an option to assign on your contract. Options can be sold or exercised.

When you sign a purchase agreement with a seller simply put and/or assign next to your name. This will enable you to assign the contract to another buyer.Also there is a big difference between a Wholesaler and a Real Estate Agent.
Real Estate Agents have a license to sell real estate because according to the law you need a license to sell real estate. Wholesalers do not need a license because they are not selling real estate they are selling their rights to a certain real estate property ( the contract). Because contract rights are considered property, they can be transferred to others just like a piece of property such as a home or car.

Thank you,

It is really important and valuable to hear how others outline and think through their deals. Every step gives insight into how things really work (real world). Your insight is greatly appreciated.

Thanks,

It is really important and valuable to hear how others outline and think through their deals. Every step gives insight into how things really work (real world). Your insight is greatly appreciated since I'll soon be putting together my first deal.

Thanks for the red flag. Thanks even more for not letting this stop you. It's great when we can learn from the mistakes of others, and know that everyone continues to grow..

Thanks for the details...the success is in the details.

Finally, I just found an agent willing to make an offer for a assignment of contract.

I really need help with the fast offer formula can someone message me with a better understanding.

Here are a couple of examples that should help:
Birddog/Assignment of Contract
—
1. ARV $100,000

2. % Buyers purchases of ARV (.70) $70,000.00
(or insert specific profit number buyer wants. Ex. $20k)
3. Repairs $15,000.00
Investor Pays… $55,000.00
4. Your Profit $2,000.00-$5,000.00
Max Offer $50,000-$53,000

MINUS 5%-10% for negotiation room and start your offer from that point = starting offer at $45,000-$47,700

Double Close
— 1. ARV $100,000.00
2. % Buyers purchases of ARV (.70) $70,000.00
(or insert specific profit number buyer wants. Ex. $20k)
3. Repairs $15,000.00
Investor Pays… $55,000.00
4. Your Profit $7,500.00
5. Transactional lending $3,500.00
Preliminary total $44,000.00
6. Closing Costs (3%) $1,320.00 = (44,000.00 x .03)
Max Offer $42,680.00

MINUS 5%-10% for negotiation room and start your offer from that point = starting offer at $38,412

The idea is this.
1) Find the value
2) Determine rehab
3) subtract all costs and profits from the value
4) take a little more so that you have room to negotiate.

This type of formula allows you to make money. The reason is because you have accounted for all of your expenses that could lesson your profit.

Use this contract for any FSBO's to assign the contract because it gets you out of depositing earnest money and spells out the process pretty simply. Just remember the Assignment is between you and the end buyer only!!

AGREEMENT TO PURCHASE

This is a legally binding contract. If you do not understand this contract, please seek legal counsel.

THIS AGREEMENT entered into on the 4th day of October 2013 by and between, Initial Buyer or LLC, hereinafter referred to as "Buyer", and Initial Seller or LLC, Hereinafter referred to as "Seller".

PROPERTY PURCHASED: In consideration of the mutual promises herein contained, the Seller agrees to sell, and the Buyer agrees to buy, in accordance with the terms and conditions of this Agreement, the following described Real Property, Situated in the City of Atlanta, the County of Fulton and the State of Georgia, and described as follows:
144 Howell Street Atlanta, GA 30312

Together with all the improvements thereon, all privileges, appurtenances, easements, and all fixtures presently situated in said building, including, but not by way of limitation: all heating and air conditioning equipment including window units; all electrical, plumbing and bathroom fixtures; water softeners; shades; venetian blinds; awnings; curtains, draperies, & traverse rods; storm windows & doors; window & door screens; affixed mirrors; wall to wall, stair, and similar attached floor covering and carpets; television aerials, and rotor operating boxes; garage door openers and similar operating devices; ranges, ovens, refrigerators, dishwashers, garbage disposal, trash compactors, humidifiers; washing machines; dryer; all affixed or built-in furniture and fixtures; all landscaping, trees and shrubs; all utility or storage buildings or sheds; all building and yard maintenance equipment and tools; all furniture and equipment used by or rented to the tenants and all other attached property included.

PRICE AND TERMS: Buyer hereby agrees to pay for said property the sum of Eighty –Five Thousand Dollars ($85,000) payable as follows: a personal note in the amount Two Thousand Dollars ($2,000) is attached hereto as "Earnest Money" to apply toward the purchase price. In the event the offer is not accepted or if Seller defaults in the performance of this contract or if Buyer terminates this contract as hereafter provided, the Earnest Money shall be promptly returned to Buyer.

EVIDENCE OF TITLE: in the form of a title search and owner's policy of title insurance, will be furnished by Seller, and shall be subject to the approval of the Buyer. A preliminary binder shall be provided to Buyer, for his review and approval, 48 hours prior to closing.

SELLER'S CERTIFICATION: Seller certifies to Buyer that, to the best of Seller's knowledge (a) there is no termite damage to the REAL ESTATE; (b) the fireplaces, chimneys, electrical, plumbing, heating, air conditioning equipment and systems, and other items included herein will be operational on Possession; (c) the REAL ESTATE is zoned residential; (d) there are no pending orders or ordinances or resolutions that have been enacted authorizing work or improvements for which the REAL ESTATE may be assessed; and (e) no City, County or State orders have been served upon him requiring work to be done or improvements to be made which have not been performed.

INSPECTION: Seller agrees to give Buyer, and/or his agent, access to property prior to closing to inspect the entire premises. Inspection shall include every room, the roof, plumbing, wiring, structure, foundation and all mechanical components. Should any deficiencies be found, the Buyer shall either notify the Seller in writing of the deficiency and deducting the cost of the repair from the purchase price at the Seller’s option, or notifying the Seller that the inspection does not meet the terms of this contract and refunding the Earnest Money deposited by the Buyer.

CONVEYANCE AND CLOSING: Within fifteen (15) from acceptance, or upon repair of any deficiency in building condition by Seller, as provided above, or within 5 days of receipt of assumption materials from seller's lending institution by closing agent, whichever is later, both parties shall deposit with the authorized escrow holder, selected by the Buyer, all funds and instruments necessary to complete the sale in accordance with the terms hereof. Seller shall be responsible for transfer taxes, deed(s) preparation; and shall convey marketable title to the REAL ESTATE by deed of general warranty in fee simple absolute, with release of dower, on or before closing, or at such sooner time as mutually agreeable to the parties hereto, free, clear and unencumbered as of Closing, except restrictions and easements of record which do not adversely affect the use of the REAL ESTATE. Seller shall have the right to remove any and all encumbrances or liens at the Closing out of the Purchase Price. Possession shall be given subject to tenants' rights on or before closing.

PRORATIONS: There shall be prorated between Seller and Buyer as of Closing all (a) real estate taxes and installments of assessments as shown on the latest available tax duplicate; (b) interest on encumbrances assumed by Buyer and (c) rents and operating expenses; with Buyer assuming liability for such items following Closing. Security and/or damage deposits, advance rentals or considerations involving future lease credits held by Seller shall be transferred to Buyer at Closing without proration.

CONDITION OF IMPROVEMENTS: Seller agrees that on Possession, the REAL ESTATE shall be in the same condition as it is on the date of this Purchase Offer, except for ordinary wear and tear. In case the REAL ESTATE herein referred to is destroyed wholly or partially by fire or other casualty, Buyer shall have the option for 10 days thereafter of proceeding with the terms of this contract, with an agreed adjustment in the sale price, or of terminating this agreement and being repaid all amounts paid hereunder.

DEFAULT: It is expressly agreed that upon the event of any default or failure on the part of the Buyer, to comply with the terms and conditions of this contract, that Seller agrees to accept the EARNEST MONEY deposit with payment of the personal note as full liquidated damages. Upon default by the Seller to perform under this agreement, all deposits and notes shall be returned to Buyer on demand, and Buyer shall not thereby waive any right or remedy he may have because of such refusal. Further, Buyer shall be reimbursed by the Seller for his reasonable expense of building inspection, credit report, and appraisal fees.

SOLE CONTRACT: The parties agree that this Agreement to Purchase constitutes their entire agreement and that no oral or implied agreement exists. Any amendments to this Contract shall be made in writing, signed by all parties and copies shall be attached to all copies of the original Purchase Contract. The terms and conditions of this Contract are to apply to and bind and inure to the benefit of the heirs, executors, administrators, successors, and assigns of the respective parties. All provisions of this contract shall survive the closing. All parties are advised to seek competent advice, unless they fully understand all terms of the contract. Should there be any term or condition in this contract that is not in accord with the applicable legal statutes, either party may void that portion of the contract by having his lawyer furnish a written opinion stating the reason, and citing the proper law or court case.

LEAD WARNING STATEMENT: Every Buyer of any interest in residential real property on which a residential dwelling unit was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. If the dwelling unit was built prior to 1978, Buyer has the right to inspect for lead, at Buyer's cost, for a minimum of ten (10) days following Contract acceptance.

EXPIRATION: This offer shall expire unless a copy hereof with Seller's written acceptance is delivered to Buyer or his Agent on or before 6:00pm on the 5th day of October, 2013.

APPROVAL: The undersigned Buyer(s) has read, fully understands and approves the foregoing offer and acknowledges possession of a signed copy.

______________________________________________________________________________________________________
Buyer Initial Buyer or LLC Date

ACCEPTANCE
The undersigned Seller(s) has read, fully understands and verifies the above information as being correct and accepts the foregoing offer; agreeing to sell the herein described property on the terms and conditions herein specified and acknowledges receipt of a signed copy.

______________________________________________________________________________________________________
Seller Initial Seller or LLC Date

ASSIGNMENT OF CONTRACT

The undersigned Assignor, having executed a contract dated on the 4th day of October, 2013 between Initial Buyer or LLC, “Contractor”, and Initial Seller or LLC (“Contractee”), concerning the property described as: 144 Howell Street Atlanta, GA 30312.

hereby assigns all rights to said contract to: End Buyer or LLC ("Assignee") in exchange for compensation in the amount of Seven Thousand Dollars ($7,000). To be paid as follows:
1. Earnest money deposit of Two Thousand Dollars ($2,000) to be paid to Initial Buyer or LLC, upon execution of this document and is considered non-refundable upon deposit.

2. Balance of the Assignment Fee to be paid at close of escrow.

Assignee agrees to fulfill all terms, conditions, and contingencies of said Contract and to perform as required in good faith and within any time periods established by said Contract this 8th day of August, 2013.

______________________________________________________________________________________________________
Assignor Initial Buyer or LLC Date

______________________________________________________________________________________________________
Assignee End Buyer or LLC Date

Hello fellow members,

My name is Fernando and I am a new member. I too am starting on Assignment of Contract and had a question. I've been reading the posts and the simplicity of an Assignment of Contract. There's a detail that im left with being unanswered... I understand I'll first need to place the property under contract with a Purchase and Sale Agreement, then use an Assignment of Contract to a cash buyer. Lets say the price on the Purchase and Sale Agreement is $60K and I sale the contract (Assignment of Contract) to a cash buyer for $80K. Here's my concern... How much is the cash buyer paying me directly? Will the cash buyer make one check out to me for $20K and another check to the original seller for $60K. Or, will the cash buyer make one check to me for $80K and I cash it in and then pay the original seller the $60K as agreed under the Purchase and Sale Agreement? My concern is how is the money handled and who gets what specifically.

Since I came across this statement, "Once you find a buyer, and fill out an Assignment of Contract, making sure the Assignment of Contract is given to a closing agent, and collect your money when the seller and buyer close the deal." in a PDF, my concern is this... If I am not working with a R.E. agent, how can I go about finding a 'Closing Agent'? Is this what is refereed to as 'Closing Escrow'? Do I need to have a R.E. agent do this for me or other type of representation? Do I have direct access to a Closing Agent and how?

I realize the last post has been a few years back, but hope these details can be answered. Thank you for your time and success to my fellow members.

Fernando

What state Anita?

Harold

In your scenario you are being paid $20,000 from the buyer. You have the property under contract for $60K. You are not selling the property for $80K. Rather you are selling the contract for $20,000. The buyer will pay you $20K then purchase the property for $60K this would give them their full investment of $80K. The resale at $80K would normally be for a double closing where in you have two REPC that you are working with.