assigning a deal

"nstreet" I thank you for your time and response. There is another concern that was brought to my attention after speaking with an R.E. Attorney. I wanted to inform my fellow D.G Family as well...

Hello D.G Family. I am a new Investor as of 1 month and 7 days ago. I have been going over the information provided in the study material and have obtained a ‘Purchase and Sale Agreement’ and an ‘Assignment of Contract’. I have obtained an R.E. Agent whom to work with. I’ve explained my strategy and technique to my R.E. I had to explain to her the working of a ‘Purchase and Sale Agreement’ and the ‘Assignment of Contract’. Informing her that im not using the Purchase Agreement that a R.E. Agent normally uses, since I am not closing on the property nor am I representing anyone, that im no R.E. Agent. She understood and is now working with me. She gave me a copy of her the Purchase Agreement she uses for me to compare with my ‘Purchase and Sale Agreement’. I included a few bullets from her contract into mine. I gave her a copy of both my contracts so she could run them by the title company she works with. Both her and the title company, informed me that my ‘Purchase and Sale Agreement’ made me seem to be acting like an R.E. Agent (which is what I do not want to be). My R.E. Agent is still working with me, but I just need to fix my P. and S.A. I spoke with an R.E. Attorney and he too informed me that I was acting as a R.E. Agent by using the P. and S.A. contract. I also explained to him my technique and he said that my approach is legal, I just need to change the way my P. and S.A. is stated. He then gave me a 2 page print out of the Arizona Real Estate Law Book: Chapter 20 (Real Estate): Article 1 (Real Estate Department): Section 32-2101 (Definitions). One of the definitions is that of a “Real Estate Broker”. Stating…

"Real estate broker" means a person, other than a salesperson, who, for another and for compensation:
(a) Sells, exchanges, purchases, rents or leases real estate, businesses and business opportunities or timeshare interests.
(b) Offers to sell, exchange, purchase, rent or lease real estate, businesses and business opportunities or timeshare interests.
(c) Negotiates or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate, businesses and business opportunities or timeshare interests.
(d) Lists or offers, attempts or agrees to list real estate, businesses and business opportunities or timeshare interests for sale, lease or exchange.
(e) Auctions or offers, attempts or agrees to auction real estate, businesses and business opportunities or timeshare interests.
(f) Buys, sells, offers to buy or sell or otherwise deals in options on real estate, businesses and business opportunities or timeshare interests or improvements to real estate, businesses and business opportunities or timeshare interests.
(g) Collects or offers, attempts or agrees to collect rent for the use of real estate, businesses and business opportunities or timeshare interests.
(h) Advertises or holds himself out as being engaged in the business of buying, selling, exchanging, renting or leasing real estate, businesses and business opportunities or timeshare interests or counseling or advising regarding real estate, businesses and business opportunities or timeshare interests.

(i) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.

(j) Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.

(k) Incident to the sale of real estate, businesses and business opportunities negotiates or offers, attempts or agrees to negotiate a loan secured or to be secured by any mortgage or other encumbrance upon or transfer of real estate, businesses and business opportunities or timeshare interests subject to section 32-2155, subsection C. This subdivision does not apply to mortgage brokers as defined in and subject to title 6, chapter 9, article 1.
(l) Engages in the business of assisting or offering to assist another in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government.
(m) Claims, demands, charges, receives, collects or contracts for the collection of an advance fee in connection with any employment enumerated in this section, including employment undertaken to promote the sale or lease of real property by advance fee listing, by furnishing rental information to a prospective tenant for a fee paid by the prospective tenant, by advertisement or by any other offering to sell, lease, exchange or rent real property or selling kits connected therewith. This shall not include the activities of any communications media of general circulation or coverage not primarily engaged in the advertisement of real estate or any communications media activities that are specifically exempt from applicability of this article under section 32-2121.
(n) Engages in any of the acts listed in subdivisions (a) through (m) of this paragraph for the sale or lease of other than real property if a real property sale or lease is a part of, contingent on or ancillary to the transaction.
(o) Performs any of the acts listed in subdivisions (a) through (m) of this paragraph as an employee of, or in behalf of, the owner of real estate, or interest in the real estate, or improvements affixed on the real estate, for compensation.
(p) Acts as a business broker.

The 2 sections, *i* and *j* stand out because im using the ‘Purchase and Sale Agreement’ and they seem to apply. By doing a ‘Purchase and Sale Agreement’, am I not directly procuring prospects to the result of a sale of R.E.? Also, am I not assisting in a negotiation of a transaction intended to result in the sale of R.E. interest? I know im selling my right to purchase the R.E. property, but by selling my interest in purchasing that property, this will result in a sale of R.E. Per definition of (i), identifying what a R.E. Broker is, how am I not in breach of acting like a R.E. Broker?

Again, the R.E. Attorney I spoke with stated that strategy is legal and applicable, but it’s the contract that portrays me as an Agent/Broker. I was also informed by both R.E. Agent and R.E. Attorney that it takes 5, 6 or so years for lawyers to catch on what’s going on and see that some contracts were portraying an individual like a licensed Agents/Brokers (or other), and it takes them (the lawyers) that time frame to notice it then go after that person with a lawsuit. I live in the state of Arizona, and if any fellow Arizona residence have been using a ‘Purchase and Sale Agreement’ and an ‘Assignment of Contract’ for more than 6, 10 or even 15 years without any incident with the law, I would GREATLY appreciate the feedback. It's a lengthy post, and therefore thank you all for your patience, time, and response.

I am a new investor as of a month and 7 days ago and have yet to do my first contract. I have the drive and motivation to get out there and succeed, but I’d like to know that im doing it legally and not breaking any laws by acting like I am licensed or portraying myself like a licensed professional.

Are you finding that 60 days is enough to get the assignments done?

What is an average time that it takes to find an investor once you have the assignment.

Did someone every answer your question:

"What form do i use to make sure i get my finders fee?"

I'm starting out, and would also like to know now.

Has anyone had experience working through the County Assesors / Recorder offices for DuPage County, Illinois?

I'm starting in DuPage and am looking for pointers...eager to learn from others.

Hey Sully,

I'm am new here and looking to partner up with someone and guide me through my first deal. I am interested in Wholesaling, since money is an issue.
Let me know your thoughts.

Thanks!
Paul

I have a buyer for a property will assign it hopefully on Monday or Tuesday

The common document that you will use for an assignment fee is an "assignment of contract". If you are planning to work on finder fees you can use a finder fee agreement. Both of these documents can be found here on this website.

I am also new at this. I see a lot of you have more experience then i do. I want to start out in wholesaling, I just purchased Dean's book and am half way through it. I've never done any real estate before, so i have no idea on how to start off. My credit is poor and not sure if i will qualify for a loan. Can you give me some insight on what and where I should start. I really would appreciate all the help i can get. I have seen a lot of foreclosure properties in my area and just not sure how to invest in foreclosures. Lost and confused...

Will sit down with Realtor on monday to go over my first offer on an REO. Thinking we will use realtor's purchase agreement with a double close since it is an REO. May have an interested buyer since this property fits his profile property. Not sure if I should first consult with a RE attorney or Title Co. about acceptable purchase agreement contracts in the state of Rhode Island or just go with the Realtor's purchase agreement with exit clause and then have buyer sign a DG purchase agreement for the sale of property from me. Are there states that do not allow DG purchase agreements? I would appreciate thought's as to how I should be approaching this deal. Thank you in advance.
Larryc

I have been using my states purchase agreement for reo offers and have not had a problem so far. As far as I know you can have your realtor give you a blank copy of your states purchase agreement that you and your buyer can fill out!!

Can someone help me please. I am wondering how you can get a property under contract if a real estate agent already has the property listed on the MLS. Is there a way I can do this? Do you have to go out and find your own real estate agent to work with first before you can do this kind of deal and submit an offer. How would I go about getting the property under contract both ways with or without my own agent? Is that possible? The reason being I have a lot of properties around me that are for sale, but they each have a realtor sign out front the house. I know those signs have been out there for many months. How would I go about doing this kind of deal? Is it like any other kind of assignment? Can someone please explain this to me in detail. By the way I live in Maryland if that makes a difference.

Thank for your time,
Michele

All I can say for now is WOW just getting started myself ,contacted 3 buyers to get a feel of what to look for so I know there is a buyer for what I find, after that it gets a little scary, it's the process of not being sure & not wanting to make mistakes,reading these posts has helped .like nike I just have to do it.Thanks

After all the contracts are filled, where do i got to collect my profit? From the attorney's office?

I just submitted bids at very deep discounts on 25 properties in the Greenville, south Carolina area. My REA responded back by saying "Great!" and that I needed earnest money and proof-of-funds. The earnest money didn't surprise me, but the POF was a shocker. Anyone ever heard of POF needed for wholeselling/assigning of properties? I just don't recall reading that anywhere nor have I ever read that someone suggested such. Thanks to anyone who can offer the advice. Anyone wanting to be a partner for the first five deals? Please let me know at young twenty-four steve at yah who dot come or at eight six four five one seven zero eight nine six. Thanks again. theassociate

it's fun once you done it right, so enjoy take it slow and do your homework!!!

Mark is correct.

Different states do have different laws. The information I gave was a blanket statement when I should have noted the difference in law.

Thanks for the addition.

Insiders Cash offers a free proof of funds.
Many of us also use a proof of funds from www . best transaction funding . com. This is a supers easy proof of funds.

Keep in mind you DO NOT need to use the financing company you got the proof of funds from. For instance you could use the proof I suggested and Insiders cash for the actual funds.

Are you sure about not putting down any earnest money? In your section 2, you stated "you do not want to put any earnest money down." My experience has been the opposite. My REA wanted a proof-of-funds letter and earnest money deposit on the 25 properties I submitted bids for. If you know a way where I don't need to put down any earnest money, please share. The proof-of-funds letter I can acquire, it's the earnest money deposit that's the hold up. I have talked to others who are putting down just one payment and having the agent to copy that payment for all the other properties. But again, I haven't heard or seen anybody do it without any earnest money down at all. I've read where you could delay when the EM can be deposited, but you would have to place something down at some point. Please enlighten on your "no earnest money down strategy." Thanks, theassociate.

Thank you so much your "nutshell" version made it all so clear. It made the 30 Day book come together.

My input on an old post

I was thinking the same concerning the ARV price of 140k. Compared to the current listed price of 124k "where is the deal here" for the investor? Personally from what I've encountered, the typical investor would look for a purchase price in the neighborhood of 98k approx 70% ARV cost.

Sunny San Diego,
Where the only thing wt effort is: Nothing!

Thanks for all the info on assignments. I am looking at my first deal and have been petrified of going forward. The info and comments here have put me much more at ease. Stay tuned for my success story!

The climate of investing constantly changes, anyone seriously interested in making real estate investing a career choice needs to be comfortable with change and adaptation.
Proof of funds letters are a great free service being offered by transactional lenders such as americancashfunding.com (aka insiderscash.com) besttransactionfunding.com, and others as a way of building a relationship with you as an investor so that you will want to use their funds when you must do a double/simultaneous close. In most instances, this will work for you to verify that you have the capability of closing on the transaction. Real Estate agents do not want to spend their time working with people who are unwilling or incapable of pulling the trigger when an offer needs to be made.
In areas where competitive bids on properties are being submitted, we are finding that sometimes the proof of funds letter is not strong enough to get your offer accepted. Most POF letters do indicate that this would be a loan, rather than a cash purchase. In those instances, the stronger documentation would be a Verification of Deposit (VOD) which is an actual bank statement showing available funds sufficient to cover the purchase of the property. It is possible to "borrow" someone else's bank statement for this purpose, but there is a cost associated with this, which ranges from an $80/month unlimited usage fee to a $500 one time usage arrangement. Of course, we advocate the less expensive unlimited usage version, and many of the trainers in the program use this method ourselves to get our offers accepted. We're happy to refer you if needed, if you will contact us on the training line.
Obviously, we hope for each of you that the simplest, least costly methods of getting your offers accepted will work, but ultimately, if there is an additional requirement in order for you to make thousands from each transaction, we hope that you will make the decision to incur the additional business expense to solidify your offers vs. those of other bidders on properties.

If assigning you can collect a check right at the point of filling out the assignment of contract. If its going to close or a double close then you can collect a check at the closing be it at the attorney's office or title company or have them wire it directly into your account. You'll let the attorney or title company know before closing which way you would like it sent.

I'm a new investor as of 1 month and 10 days. I bought DG's system and work on wholesaling propety to create fast cash for paying credit card debt, and I seem to accomplished a lot ever since I bought the system but confusing. I attended the BOG training about 2 weeks ago, I put up Bandit Sign and found a few buyers. I got agent to sent the MLS, went see the property that met buyer criteria(wholesale property types) then I came to a full stop when I found out there is a restriction on bank own property (HomePath). On top of that, I made an offer on a townhome property(think might offend the seller) through my agent, they came back today with a counter offer at $80K, where I came in at $55K with $250 in earnest money, suspected might be too much because it needs ceiling, floor, appliances,new ac unit, bath re-glaze and new vanity in the bathroom, paint and wall patches, the property value at $90K from agent comps with a rental at $950-$1050/m. tax assessment is $110K. It seem like I'm not following the system or that I'm too caught up with the property, I don't know what to do next, looking for help and advices.
also, I proposed to "we buy houses" buyer for bring in my other buyers(property met his buying price) for a fee, they offered me $1K for finder fee then I crewed up the wording on the agreement and she smarty about it, and not get responded ever since. I'm crewed up, and crushed.
please help... what should I work on now? do I need to look for title company, contact FSBO(what contract to use) etc.
Need advices, suggestions, anythings just lead me to the right track.
thank you in advance.
anna

I am partly responding to Anna's post here, but also to others who may feel that they are a little unsure of their path, or have made mistakes along the way in getting started.
Here's a question for anyone who is new that I'm guessing you won't know the answer to. What is the biggest difference between a novice investor and an experienced one? The answer is that the experienced investor has made more mistakes than the novice. But we have also kept going and learned from those mistakes until we got it right. But we still continue to make mistakes and sometimes get off track ourselves. So be patient with yourself and steady in moving forward.
I have a few suggestions that I think will help with the items mentioned above.
1) Cash Buyers--Make sure that you have built a list with multiple cash buyers, and that you have carefully interviewed and qualified your cash buyers. The ones who are telling you that they'll take anything that will make money are just using you, and don't understand how you can assist them. We need to know specifically what they will say YES to, because we do "Properties to Order." That means that we are going to take the list of their criteria and find properties that match and pre-negotiate the deals for them. We won't waste our time or their time bringing random properties that they will not be interested in. One more point in regard to your cash buyer's list is that you can assure that you will have a buyer for your property only if you: A)Have multiple buyers who all want exactly the same kind of property; B) Search ONLY for properties that match the needs of those buyers with overlapping needs. In other words, if I have 5 cash buyers who want properties in the $200k price range on the south side of town, I will not even consider properties in the $500k price range on the north side of town.
If you do not have your cash buyers list constructed the way it is described above, then you either need to re-interview the ones on your list to get more information, or you need to add additional cash buyers to your list.
2)Let's do our best to review the town house deal. You've made an offer that you indicate was low, but if you have followed the program formulas, then it's okay if the offer is low. Our obligation as wholesalers is to make offers that will be acceptable to our cash buyers, and not to worry if someone else does not like our offer. It seems to me that if someone becomes offended by an offer, it is because they are actually uncomfortable with their asking price.
3)The system for making offers is to follow the formulas taught in the program. For most rehab transactions, we would take the ARV of the property, multiply by 70% to cover the profit and marketing costs of the cash buyer, and then deduct the rehab estimate and our profit. That gives us our maximum allowable offer. There are variations on this formula depending on our cash buyers' needs and the demands of the marketplace.
4) It is valuable to you to build your professional team. Having a title company that you have spoken to and met with gives you the opportunity to designate the company that will close the transaction in your offers.
Most importantly, for Anna and anyone who is getting started, please don't let the things that sometimes happen with insensitive people stop you from moving forward. Build your cash buyers list, make it solid by asking the right questions to know what they are looking for, then focus your attention to finding specifically those properties that will match your cash buyers' needs. If any of you need a specific list of questions to ask in qualifying cash buyers, Private message me with an email to send it to, and I'll be happy to forward that to you.
The program is not intended to be complicated, and most of the people we will be dealing with are nice people. If you only knew how many times I've "screwed up" along the way, you'd just shake your heads and laugh. We all get our bumps and bruises along the way, but real estate is still a great way to earn a living, and very rewarding.

I agree with everyone and thats for sharing. The key is to have a HUGE CASH BUYERS LIST. I learnt that in a hard way when I got a property under contract in PA and my buyer (tirekicker) backed out.

___________________
Tc
Miami, FL
Check out my journal http://www.deangraziosi.com/real-estate-forums/investing-journals/144538...

Hello, I was reading the respond relating to the source for proof of funds. Wanted to clarify that proof of funds are not granted to individuals.

Thanks, Nate
DGer - 4Life

The following is the notation and disclaimer from Best Transaction Funding.

We only fund business entities such as Companies/LLCs/Trusts/Inc vs. the funding being in the person's name (i.e., John Smith) regardless of the POF or VOD letter type you choose to produce.

If you want to learn how our clients have used their own name while doing the deal within their company, please contact us.

The intended use for the POF or VOD letters is to give you, the investor, a letter to provide to the necessary parties involved in your real estate transactions to show you are either pre-qualified or have the funds to purchase real estate when doing a back-to-back closing (or extended back-to-back closing) and using our services to fund the "A to B" portion of the back-to-back closing.

You may only use our POF or VOD letters when making offers to purchase real estate when doing a back-to-back closing (or extended back-to-back closing). We will not be responsible for the misuse of this POF letter in anyway

Hello DGer's,

In regards to the process of "Assigning a contract" I noticed in my readings here on DG.coms forums that most REI's are extremely interested in Wholesaling. Rightfully so it seems to be very lucrative. I was at a RE investors club here in San Diego Ca. and a very seasoned Investors suggested that I try Purchasing the property using my LLC as opposed to purchasing it in my personal name. In instead of the sales transaction being for assignment fee, i would in fact be selling the buyer my LLC which owns the property. As of this note I have not attempted this sort of transfer. But,I would like some input from anyone on this Thread/Forum. Especially anyone who has done this type of transaction. It's sounds do-able (is that a word?) :-)------Thanks for any input

Nate
DG"er-4Life