AND/OR ASSIGNS - How to Use It and Get It Accepted!

I've read the post here, and I'm a little confused (Sorry) but when I have a seller and an Investor;
First; I get a contract with the seller allowing me to get a buyer for the house 30-60 days without any penities if no buyer is located and also get a price on what the seller wants for it.

Second; When a buyer is found, Do I add my cut in the contract? (Buyer will pay x% or amount to Washburn's Investment, LLC @ closing) or I don't need to add anything like that.

Does anyone have a contract they use for AND/OR ASSIGNS? I'm VERY new with the R.E. business LoL Sorry to be a pain. ANY/ALL Help with be welcomed!

No. You do a regular purchase agreement (for the negotiated price) with the seller and sign your name and/or assigns (this allows you to assign the contract). Then you do an assignment contract with the end buyer (for the difference in purchase price and market value price), so it's two seperate contracts that you use. Both contracts are in Dean's forms and docs section just click on the links and save them.

Thank you VERY much! You're a life saver LoL, You sure you don't want to work for me? J/K But thank you very much!

I'm happy to help. I hope that clarified it for you. Let me know if you need any more help. But actually, it sounds like I could learn a thing or two from you regarding building a successful business. I'm getting my LLC so I can build lines of business credit to take my investing to the next level.
Wow, thanks for the offer, I could be your virtual assistant.

Good Luck with getting your LLC. Have you done a lot of deals yourself? Once I get use to it all I hope I can shoot out deals left and right (I wish that could happen) But you said like you know a lot about dealing with Assigning's and Real Estate! If I have any questions I'll let know, and thanks once again "My Assistant" J/K

Thank you. Yes, I have done over a couple of deals and made over $22,000 on each one. They were all fantastic learning experiences.

how did you find a buyer in this market? Houses are sitting for 6-8 months in my neck of the woods. What happens if you don't find a buyer after the time specified in the contract, do you rent it? How does escrow work in this scenario? Anita purchased for 150K and sold for 175k, if she only holds for 30-60 days until she sells what money is going into escrow and why. I'm lost...obviously .

HEIDE - Smiles to you!!

Thats great, money woman over there , but I guess I will have to wait to make any deals until after this T.S. Fay goes over Florida and wait until I finish with my work after the storm.

well, basically what happens is, if you have a closing set from 60 days from today and you let the contract expire, you will forfiet any deposits to the seller that were in escrow, UNLESS you used an escape clause to get out of the contract without penalty or put down NO EARNEST MONEY, CLASS DISMISSED

Hi Anita,

just read thru the whole thread. Since I just started w/Dean's material (finally got my access codes TODAY) I'm not sure what I should do with one of the 3 deals I found so far..... Here it is:

2+1, SFR, Florida, according to Zillow ARV is $77K - $87K. Since the last 2 owners did nothing to the property (major code violations, citations) this property is in the process of being condemned (will probably happen w/in the next 4 - 6 weeks). I have negotiated so far a price of $26K, and AS IS ($26K is how much she paid in cash for this property).

But after doing due diligence (and surprising the seller's RE agent with the bad news that her client lied to her big time) it seems that there is a law in FL that you can only invest up to 50% of the current house value (= $24K in my case) to make it inhabitable again (incl. all permits, engineer, rehab et cetera). If $12K can't accomplish that the new owner (= me or the "assigns) would be forced to demolish and sell an empty lot, or build a new house on the property. My Qs:

+ Does this law really exist? Couldn't find anything about it so far...
+ If I do the contract with "and/or assigns", do I have to disclose the impending condemnation to the potential wholesale buyer/investor? (I'm not a realtor, but I would still feel as if I'm dishonest.)
+ Does anybody had a similar situation before, and could give me some advice?
+ Should I try to get a GC to defer his payment until after I sell the property in order to stay below the $12K cut off? Would that even be an option?

I need help ASAP, because I really would like to pounce on this one. But I'm just scared (this being my first RE deal) to make any (costly) mistakes!

Conny

Elena, I'm new in REI. When using this form ( purchase agreement ) with the seller, do I put down any earnest money to hold the deal for 60 days with an escape clause and at the same be looking for a potential buyer.
Because I'm assigning this contract to the end buyer, he/she should layout the earnest money. Correct me and others in this area.
Francis

Welcome to the DG family/forum as we call it. We're very happy to have you here with us. Yes, to lock in the purchase agreement you would need to put an earnest money deposit, but that could be as little as $10, if that's what you negotiate with the seller. If you already have an end buyer when you lock up the deal you could use their earnest money, but that's a little more risky as they would probably want to see the property before buying it and that gives them the opportunity to lock up the deal themselves and possibly cut you out. So if you have to put down the earnest money it would be worth it so YOU could have control of the contract, make sense? When you assign it to the end buyer, you use a seperate contract for that, so you have two contracts, one with the seller and one with your buyer.
Good luck and God bless you,

I've been told by a very experienced and successful real estate investor, who also has a Real Estate TV show on A&E, that it is NOT necessary to put the clause in UNLESS the contract specially says something to the contrary. If not, all contracts are assignable. I have not verified this with an attorney and it may vary from state to state. If I have been misled - please let me know.

Thanks,
Rich

Does it also make sence on an and/or assign deal to also cloud the title with the assignment fee or is the assignment aggreement with the investor far enoguh to protect my assets as they say. And hello all!! I am new here and would appreciate any help.

"Strong contracts, strong will and creativity is the only path to a Great Deal"

Is it also possible to be creative and have title/dead signed over and filed subject to then and or assign to the new seller to keep all the profit above my negotiated price? pehaps having a power of atorney signed by the original seler to myself coupled with an option then puts me in this eqity position and leaves me multiple options as an exit strategy. Would this give 1) the right to sell 2) the right to lease and control the propert. 3) the right to all future equity. 4)The right to cloud the title to protect myself from the seller from seling from under me, 5) and power of atorney to exit any sale with only one clossing.

This should alo allow me to do this transaction showing control of the property sale without breaching laws that uggest I need to be a re agent to do certain types of deals.. That part meaning that in some casses you need to be an agent thaqt is licensed to sell property and receive a commision on property you do not own. this may be a way for me to mak more money while helping the seller as well as the buyer. win win win!!! does this make any sence. if so then I am finally getting it if not then back to the drawing board.

P.s. I can not spell/type to well

It is true acording to my lawyer that you CAN assign any contract that does not have a lause in the contract to the contrary. However, this is risky as you are decieving the seller in the deal leaving them a potential loop hole to back out of the deal with a good lawyer. also, to me... buyer confidence goes to ways. Spell out to the seller what your intentions are and if one of your exit stratagies is to asign the contract then add this in to your contract and let it be an issue up front and not later... just my advice.

It is true in MOST places but not all. But I would and I do, still use the and/or assigns clause to PROTECT ME. Those purchase agreements are written mostly for the benefit of the seller and/or sellers agent

Can and/or assigns be used on foreclosures? Thanks in advance.

Although I'm a newbie in REI, I have already been acquiring a wealth of information thanks to all of you and Dean's book. Y'all rock! God bless.

Rina-
The easiest way to deal with this issue is to find a title company or real estate attorney with experience doing closings with investors, and stick with that company. It will make your life much easier in that regard.

Your inspiring us out here, did you know that? Thank you!!!

Yes you can use it one foreclosures, I use it about 2 dozen times a month on offers I submit.

you've just taken the BIGGEST STEPS that you'll EVER take in your entire LIFE, CONGRATULATIONS

Thanks for the tip. I'll have to do some more investigating for one in town. BUT I might be making progress with my "people" now. lol They're all really decent, just uninformed, I believe.

God bless,

Rina

I am in the process of reading the book that I just purchased and although I am a little overwhelmed I am looking forward to finishing it and starting out on investing.

Thanks,
Orlando

Sorry I've been MIA (Missing In Action)--- I am sure I've missed lots of learning opportunities! Sounds like there has been lots of success stories and discoveries lately. I have actually been offline for the past week or so helping out my neighbors with their investments/short sales...and at the same time introducing myself to them as REI guaranteeing them an offer within 24 hours!

Within the last 2 weeks or so, I have gathered 8 new short sales! I am not sure if I've mentioned this before...I hired an assistant about 2 months ago to do my paperwork and so I can do more fieldwork.

I will chat soon....I have another appointment. Miss you all!!!!

We miss you, too.

Rina

Hello every one, this is my second time loggin in the DG Web, and learning alot. I been reading so much and I am very excited, but I have left life get in my way and I have not moved forward as I should. I want to start now and the and/or assigns is the way I have to go because I have no money and a terrible credit so to get back on my feet I believe this is the way I have to start.
#1 ???? For a person like me that has not done any deals yet, can you suggest where and how can I find the owner's info. (Such as: Name and currect add)
#2 ?? What do you suggest I start doing first.

Thanks for any help that you can give me.
Yolie

Hi Yolle

You may want to start by checking out Deans Foreclosure alert. The information on it should arrive with your your book. Also check out the forums on here to give you some ideas. There is a search feature in the upper left of the page.

I can't find ONE bank that will accept and/or assigns for their REOs! I don't understand how others in this forum have said that they've been able to work with the banks and I can't find any that will accept assignable contracts. What am I doing wrong?

Just do a double closing, it's the same thing basically, but it's done differently then assigning it. I did mine a couple of years ago before all the foreclosures. I also didn't use a realtor or a bank. I assigned it to another investor so HE had to get financing not me. I used my own contract with the seller without a realtor and he had no problem with me putting my name and/or assigns on the contract. It actually worked in his favor that I did, because had I not, I would've had to walk away from the deal wasting his time and forcing him to start the process all over again with another buyer. So it created a win/win scenario for all three of us, me, the buyer and the seller!
God bless you,