assigning a deal

Why wouldn't they accept this and/or assigns ? Is there another way to write it?

Why wouldn't they accept this and/or assigns ? Is there another way to write it? Can you do it with preforeclosures though?

Your link is there, you just cant see it. Everyone else can tho, don't worry.

MikeHutch627 wrote:

Your link is there, you just cant see it. Everyone else can tho, don't worry.

That's what I thought, thanks for confirming. So what about my short sale assignment question? Anyone? Bueller?

If you are assigning the deal then you need to put a clause in your contract that simply states "Earnest money deposit(s) to be due after inspections have been approved by the Buyer." You can give em a date or whatever. This will give you time to find your buyer that will take over the contract and handle on earnest money and so fourth.

If the owner still owes the bank 400,000 then he still owes the bank 400,000 thousand dollars. Unless the bank is willing to give some type of forebarence on the other 50,000 then the 50 will still be owed.

can you explain or have a sample of how you did that ?

I have worked in the 3rd largest bank in the world for the latest 6 mo. in the refin and know that the bank has to approve of the short sale. As to the $50,000 we send a 1099 for that amount and it becomes a tax issue to the seller who owns the home.

I know a guy he ask me this question n i dont know so i was wondering if yall could help me on this cause im a newbie.. ok he have house fmv of 109,000. and he still owe about almost all of it. i was talking to him about an example of assigning contract. well let say since he still owe alot if we put his under contract and 75,000 after all the estimate. so the money he got from the sell got staight to his mortgage that he owe or he keep it.. can some help answer my question.

Hello my DG family.
I need your help, I have flipped REO's in the past by simply having a name added to title before closing and then quit claiming it after closing,and this worked easily with a cash buyer. However I now have a new chalenge I have an accepted offer on a home for 345,000 the buyer will pay 352,000 however he is financing the home, now correct me if I'm wrong but there will be a seasoning issue with the title right meaning that I will need to hold title for 90 days before his bank will let him purchase... What can I do I don't have the cash to buy and hold. And I was able to get contract on this house by offering cash with no inspections and I know for him to get financed for this home his bank will need him to have it inspected. Please help with any suggestions ASAP this is very time sensitive....

Thank you,
Matthew

Hello my DG family.
I need your help, I have flipped REO's in the past by simply having a name added to title before closing and then quit claiming it after closing,and this worked easily with a cash buyer. However I now have a new chalenge I have an accepted offer on a home for 345,000 the buyer will pay 352,000 however he is financing the home, now correct me if I'm wrong but there will be a seasoning issue with the title right meaning that I will need to hold title for 90 days before his bank will let him purchase... What can I do I don't have the cash to buy and hold. And I was able to get contract on this house by offering cash with no inspections and I know for him to get financed for this home his bank will need him to have it inspected. Please help with any suggestions ASAP this is very time sensitive....

Thank you,
Matthew

An escrow is a nuetral entity where all the funds and doucements are disbursed and it is very normal in California. It is where all pro-rations such as taxes and interest, homeowners fees, title and beneficiary statement or demands are ordered and required. Escrow fees cost approximately $250.00- $1,000.00 dependent on the salesprice.

Hey everyone. In California an escrow is used as a nuetral entity where buyers and selllers submit their contract and they are paid for the disbursements of all the funds and docuements. All the prorations for interest, taxes an homeowners fees, as well. I hope this helps you understand what an escrow is. When an assignment is agreed upon and completed, it is submitted to the escrow and an amendment is made up for the new buyer and seller to sign, as well as, a new Grant Deed to be signed, notarized and recorded.

Is there anyone in the San Jose, Ca. area that's assigning mortgages right now? I want to see one done live from start to finish so I can get my feet wet. If so please PM me if you wouldn't mind getting together.

Can someone give the above quote an answer. I actually want to know myself.

Wow!! ty everyone for enlightening me on how the deals go!
it seems very simple when reading it,lol, so here's to hoping it IS easy when the time comes..am sure it will be, because why wouldn't it?..lol
i am on a quest now to find buyers first and foremost and then blitzkrieg the pre-forclosures and FC's wherever i can!!
again, much appreciated info, and best of luck& success in the future for all....!!!

"life's a journey, not a destination.."
Joe

Hi everybody,

I'm new to Real Estate and the site and I've been reading through all of the material furiously in order to get better acquainted with everything. I'm a recent college grad with minimal starting money and so I wanted to capitalize on Assignments (is "wholesaling" another way of saying "assignments"?) . Anyways, I'm slowly but surely starting to develop a solid understanding of the process, but I have a couple general questions.

1. Assignments alone seem like a pretty profitable business... Lets say I work on assignments full-time and bring in $5,000 worth of profit a week. At that rate, I'm set to rake it about $260,000 a year (AND THAT'S WITH NO REAL ESTATE LICENSE OR ANY TYPE OF QUALIFICATIONS). This seems a little too good to be true and so I'm looking for positive reinforcement! haha

2. That brings me to my second question... Are assignments really as easy to conduct as it seems? That is to say, Is it really as easy as it seems to assemble a list of investors, find these distressed properties, and sell them to these investors (who are more knowledgeable of Real Estate than myself) at a profit?

3. Lastly, assuming I've gotten this far, some other people have been posting concerns such as, "Why wouldn't the investor just wait out my purchase agreement and go straight to the original seller for a lower price? ...to which others have replied, "Because if you have already assembled a stockpile of investors, you can use this as a way of assuring each invetor that if they do not close on the deal then someone else will do it!" I was wondering whether or not creating this bidding war actually works and keeps investors from waiting out your purchase agreement.

I guess I'm just looking for people who have experience dealing with these particular issues and how to solve them.

What are some main problems/setbacks that people experience when assigning contracts?

I'm sorry for the long post, I just really want to get as knowledgeable and confident of the material as possible and you guys have been really helpful so far. Thanks in advance to everyone and I'm really learning a lot from all this material!

Hello all. I'm new to the site and to investing. I just finished reading Dean's latest book and am ready to get the first one going!!!. But I don't want to waste any time pursuing a dead end deal. I've read comments both for and against assignments with banks on forclosures. I've found a sweet deal in my own neighborhood which is a bank-owned forclosure. FMV is around $230k and it's listed at $179k (perhaps with even more wiggle room). It just went on the market so what motivation would the realtor have for accepting an offer for $170k or even $175K, especially if I don't put up any earnest money and the contract is null & void if I do not produce an "assignee" buyer after x number of days? Who has advise? Sully? Thanks for the help.

csberry

I hope it is ok for me to pipe in knowing you mentioned Sully by name. Here is what I would suggest:

First. I would look at an offer closer to $160,000 at the highest. The reason for this is because this will get you closer to a 70% purchase to value ratio. This is where most private lenders start working and most refinances start to happen. Also, this will set up enough equity for an investor to be willing to come into the deal.

Second. I would look at more of a double closing scenario. Because, we know that banks generally do not like assignments of contract and you can still do a quick transaction. The key would be to find a good title / closing company that can do a double closing with you without double the costs.

I'm planning to get into the success academy,i'm brand new,anybody had problems with this program?

If anyone is assigning deals anywhere in North Carolina, around Greensboro, Winston Salem or Raleigh/Durham area, fell free to contact me so i can't see first hand how this get's accomplished. I really need to get this goal outta the way so i can get going. I'll buy lunch or dinner, if necessary.
HELP!! HELP!! HELP!!

I NEED HELP WITH SOME OF THE STEPS I HAVE TONS OF POSSIBLE LEADS

http://www.deangraziosi.com/real-estate-forums/questions-feedback/24124/...

In a foreclosure the $50K, such as in the example will be absorbed by the bank. From the example the purchase would be $350K and $50K needs to be covered somewhere. True, the bank is due this prior to closing but at the time of closing they give up the $50K. Prior to the whole debacle some states allowed the banks to seek recourse for the monies. Most banks, then and now are stuck to two things: 1) Mess up a person’s credit 2) Send a 1099.

The 1099 suggests that the seller (the person who loses their home) made a profit because they were able to write off (or the bank wrote off) the money. This, according to the IRS is profit. However, if you have a good CPA and your assets are lower than your liabilities you can actually show the 1099 as non applicable so that it is not counted as income.

Because of the limited information I am not sure how to answer this. However, here a few links you may find useful:

http://www.deangraziosi.com/real-estate-forums/everything-else/22293/new...

http://www.deangraziosi.com/node/1509

http://www.deangraziosi.com/node/3355

Hey guys. cam1589 posted (#7) that you could make up someone's back payments who is facing foreclosure and then wholesale their property. How can that be if what is owed on the property is more than what the property is worth? Or, in this situation, are you saying that there's equity in the house already and the seller just cant make payments for whatever reason? Thanks in advance for clearing up the situation!

Great question,

The answer actually contains two answers:

1) If the property has no equity, one option, you can clear the property of the debts that are owed. In exchange you would have the deed quit claimed to you. This would give you the ability to negotiate a short sale with the bank. Because, you have the deed you have more strength during a short sale process.

2) If the property has equity you can either do the same as the above answer and have the property quit claimed to you then wholesale the property or you could also partner with the owner and split the profits when the sale of the property is sold.

I don't understand how you get paid on the assignment deal? I kind of know how to put together the deal, but now you bought the home for $100k,you present deal to 3rd party buyer with an extra $5k on the price tag, how dose the money get seperated so you get your cut, and then move on to the orig. seller for their price??

Thank you all for your help
God Bless
Scott

Where can I find the "rules of the road" for the state of NC? There seems to be a lot of info on these forums but how do I know what is true and legal in my state? I've spoken with seller agents regarding a few properties and I always end up feeling like I don't have all the right info. Help before I make a mistake!!!

I have looked on this site for form on agreement for nondisclosure/noncircumvent agreement, and also form to give glue to the agreement to pay the finder fee.

I have been bankrupt and have lost my home. I am want to get out of this "hole" I am in and have located an investor in another state who is actually a wholesaler/investor who wants me to be a Locator (which is better terminology than BIRDDOG)in my area for him but I want to make sure he pays my Locator fee as agreed, or as he says he will. I have been burned too many times to trust anyone over the phone - so I will send him information on homes but I want that agreement first. I just can't find such a form on this web site. HELP PLEASE,

Pat