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

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

All of us on here know the importance of using and/or assigns on our purchase contracts, if we are planning on assigning them, but do you know how to use it and get it accepted without question or rejection?

As I write this, I a m speaking strictly from personal experience, because EVERY purchase and every offer, I have made, has read "and/or assigns". By now my agent knows to not even prepare the offers without it because I won't sign them.

Now I will usually make my offer as "ANITA WILSON and/or ASSIGN". When my offers is accepted and they send that huge stack of paperwork back for me to sign and accept, I politely send them back to them and remind them that they "FORGOT" that my offer was made with and/or assigns. Almost all of them have quickly fixed it and returned the paperwork, but a the few that did not fix it or refused to change it from just my name, I still signed the paperwork, I still work in and/or assigns and then once we opened escrow, I submitted and addendum with a contingency that unless I have the ability to hold title in and/or assigns and also use assignment on the property as a pert of the deal, then the deal is OFF. Well I have a few buck at this and try to strong arm me, but I kindly reminded them that the offer was submitted with and/or assigns originally and EVERY SINGLE PAPER I signed had and/or assigns on it.

So unless they were prepared to handle a breach of contract for something they inadvertently "Ignored" then I suggest they sign he addendum and lets move on. Not a one had refused so far and another reason for they may be that since escrow was already opened, them backing out would make them responsible for paying those escrow opening fees, which I also wrote in as an addendum/ contingency.

I know thats a little on the cheeky side but its best to get the upper hand as quickly as possible.

I am sort of aggressive and this works for me, and for those of you that do not feel comfortable with this tactic, then do what works for you.

__________________

Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


and or assigns

Sounds easy! How would someone, with little or no exp. with R.E. Go about such a task? Should I get an agent to write these contracts because I have viewed the forms and they are not for beginners. Ljay


Another question

When you lock up on contract with a seller, are you reserving a right to legally market that property?


Hi Deirdre,

"Locking up" a property gives you the sole right to PURCHASE that property up until the closing date set in the contract. In order to be able to MARKET the property brfore you own it, you must make sure that that is written clearly into the purchase agreement, signed by the seller. AND make sure your realtor understands what your intentions are.

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


good point there...

Re, you know....arron rogers dosen't look that bad? could prove to be a good move for the CHEESE HEADS!?!(Rina) lol

__________________

YOUR HERO, SULLY


Out-of-state assign deal...

I possibly have a deal. I talked to a seller who is in foreclosure and they just want what's owed on the property, they don't have very much equity in it, only $13,000, but still...Anyways, I know a buyer that likes to invest in that area and they said it doesn't matter whether or not it has equity. So, what should I do to make this legal, I mean, if I get a contract on the house to purchase, would I still need to put anything in there about being able to market it, or would it not matter at this point since I wouldn't be, or would it be questionalbe since I already found a buyer? I'm just trying to figure this all out, I'm sure it all will be alot more clear to me after I've actually done one of these assign deals. So, I live in CA and this house is in OK. Anyone know if there's anything restricing me from doing this b/c of being out of state or anything?


contract out-of-state

Are you purchasing/assigning through a company (LLC?) or personally? That might make a difference. If personally, I don't think it matters. You can buy a house wherever you want. If business, you might need to form an OK LLC to use, because I don't think you can purchase out-of-state with a CA LLC. Someone correct me if I'm wrong. You might want to PM Anita about that one. She's in CA.

As far as the assignment, if you can lock up that property and get the assignment contract between you and the buyer signed, I think you're good to go. Still put in a couple of escape clauses, but if you can get those two contracts signed and set a closing date that's good for your buyer, looks like you're on your way to a deal. (Remember to add and/or assigns to every place to sign your name on the purchase agreement). Good luck!!

Deirdre, please keep us posted on how it goes. The details of your transaction will be a good learning experience and incentive for everyone wanting to do assignments. Thanks for sharing it in the forums. Smiling

God bless,

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


First comment!

Hey everyone! Just read BARM and was totally stoked upon finishing. Being the broke student that I am this assignment strategy is very appealing. I got a list of properties in my neighborhood that are pre-foreclosed and spoke to a few investors and got their specifics on target properties. Anyone know the best way to contact the owner? Since this is my very first step its a bit nerve-racking thinking about negotiating with someone about their house, considering the most expensive thing ive ever bought is a xbox 360 haha!


Finding the owner....

Hi ?,

welcome to the "club".... You will find owner info on public record (if you tell me where you live, I can email you the link). Then with the name you can look up the phone number for the owner, and call them (or send an old-fashioned letter).

Let me know if you need further help... Good luck, and success!

Conny

"POOR people own big TVs, RICH people own big Libraries!"

__________________

"POOR people own big TVs. RICH people own big libraries."


Congrats E-Money

Taking the first step in actually deciding to actually get ahead in life and believing in it is the nerve-racking part! Attaining your dreams is the victory. Everything else in between is just part of the thrill - Congrats and welcome! You are awesome! Can't wait to read about your success stories!!!

__________________

"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]


Finding Owner

Got your message, here's the info! There are two field offices, and Calabasas might be a tad closer to your home in SFV than Van Nuys. Don't know anybody at the first office, but know the VN office staff to be very nice and helpful.

You can also contact the Assessor's office I have listed for you. These are the options if you don't want to pay for info (although it might cost you a nominal fee for printing or CD Rom w/info. If you are willing to pay for the info there are many companies that provide this kind of info....

++++++++++++++++++++++++++

Los Angeles County Third District Services for
The San Fernando Valley:

Van Nuys Field Office
14340 Sylvan Street, Suite A
Van Nuys, CA 91401
Phone: (818) 901-3831
Fax: (818) 997-8196

or

Calabasas Field Office
26600 Agoura Road, Suite 100
Calabasas, CA 91302
Phone: (818) 880-9416
Fax: (818) 880-9346

E-mail: zev@bos.lacounty.gov

http://lacounty.info/quick_links.htm http://bos.co.la.ca.us

L.A. County Operator: (818) 407-0959
(L.A. County operator will transfer your calls to County departments outside your area code)

Assessor’s Office

Public Information identifies ownership, values all property
(213) 974-3211

Property Information Line (888) 807-2111

Sylmar Office - 13800 Balboa Blvd
(818) 833-6000

Van Nuys Office - 14340 Sylvan St. (M-F 8:30 – 4:30)
(818) 901-3455
Website: http://assessor.co.la.ca.us

Public Information office
(562) 940-8462

San Fernando – 217 N. Maclay Ave
(818) 365-6928
Website: http://www.colapublib.org/

Registrar Recorder/County Clerk – 8:30 a.m – 4:30 p.m M– F
real estate recording

Van Nuys Office: 14340 Sylvan St., Van Nuys
(818) 374-7181

General Information (800) 815-2666

Norwalk Office 1200 Imperial Hwy
(562) 462-2137

Real Estate Searches and Record Copies
(562) 462 2133
Websites: http://regrec.co.la.ca.us

Treasurer & Tax Collector
Recorded property tax information will also record requests for substitute tax bills

Property Tax Information
(213) 974-2111

Liens (213) 893 7935

Liens on real property & Auction
(213) 974-2045
Website: http://ttax.co.la.ca.us/default.htm

++++++++++++++++++++++++

Hope, that helps you. BTW, I thought it a bit rude that you answered twice w/out stating your name (just a thought)....

Good luck!

Conny

__________________

"POOR people own big TVs. RICH people own big libraries."


Very new to this but very motivated...

Hi Everyone!

I'm very new to this and have to admit that reading the posts and seeing how everyone is so great, full of advice and willing to help each other out is so amazing!!
I do have a question..(well, honestly about 100, lol)...which properties, from everyone's experience, are the easiest to do assignment clauses with? Is it better to work with FSBO or REO when doing assignments? Is it better to look for these properties yourself or is it better to have a realtor do it for you (and how would you go about approaching a realtor to do so) See i knew it was gonna be more than one question...sorry guys i'm just so excited about this I don't even know where to start!! LOL

Thanks everyone in advance and keep the love goin' round...the simple fact that you guys are so willing to help each other and newbies like me is very inspiring!!

-Liliana


Assignments

Hi Liliana!
It's great to have you join us! And don't worry about LOTS of questions. That's how everybody starts. Smiling You'll find LOTS of answers by reading through Dean's book and through all the forums.

FSBOs are definitely easier for assignments than REOs at this time. Banks are VERY reluctant to accept offers with and/or assigns, as many of us have experienced now and even the coaches have been saying. And looking for FSBOs, abandoned/vacant houses, and preforeclosures is easily done on your own. No need to use a realtor on these. Just takes some good old-fashioned effort. When you find a motivated seller, that is the key to your successful assignment and profit.

God bless,

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Welcome Liliana!

Questions are always good. I find myself learning new things everyday just from many different questions everyone post on here and the experienced ones shining light on it.

I also found that REO is a bit challenging to assign. However, My Hero Sully created a post in regards to getting around this among others that helped me get through when I was challenged.

Looking forward to reading your success stories!

__________________

"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]


Thank you EVERYONE!!

Thank you so much for your warm welcome and responses!! I'm so glad to have found this forum and people who are so motivated to help!!
Rina thank you for the information. I'll definitley being doing some investigative work to find these properties. Where do you suggest is the best place to get info on FSBO's (aside from a good old drive round the neighborhood). I'm pretty sure I can find that info on a forum here, but if you do have a certain way to find these properties that have proven to work for you I would love to know...I definitely keep my options open.
Rina & Sheila, thank you for making me feel its ok to ask a million and one questions!!lol..I'm reading the forum topics (my eyes are crossing with all the info I'm getting Smiling) and getting familiarized with the website.

Thank you all in advance for your help!!!
Sully, you ARE a HERO with all the information you post!!!
Elena, Rina, Sheila, Anita...can't wait to have deals under my belt and share the stories with you guys and everyone in here..This is an inspiration!

-Liliana C.


Ok here goes..

I have a 2 small questions..i just did an internet search for real estate cash investors and i came across a couple of websites asking that you put the info for the home your trying to sell and they will provide a cash offer in a few days..would this be a good idea let's say if i found a FSBO and came to an agreement with the seller for an "and/or assign" and then i would in turn be the seller and put the info for the home on 1 of these websites?? How would i know whether i should do a double closing or assignment on these..lol..sorry if i'm goin on and on! any help would be appreciated!!!

Thank you..once again Eye-wink

-Liliana C.


CLASS IN SECESSION: Lily

lily, theirs a number of places to look for FSBO's, the place i look the most is right here(on the internet)on my computer, try these web sites: 1)www.ByOwner.com, www.Housesfast.com, www.forsalebyowner.com, www.fsbo.com, those should get you started.

The other question you had, i believe the web site that you said will give you a cash offer in a few days, it's probably a investors web site, NOT sure though, so dont think that will work for you, As for the "DOUBLE CLOSE" or "ASSIGNMENT FEE", that is TOTALLY up to you, both offer different advantages, so it depends on what you prefer. CLASS DISMISSED, SULLY.

__________________

YOUR HERO, SULLY


My Hero!! :)

Sully thank you I will try these websites you suggested. I have so many questions being that I want to make sure that I do things the right way. Now I just have to find out how you would calculate what you should walk away with and also if you should collect assignment fees upfront or at closing. Correct me if I'm wrong, but do you always need a title company/escrow when doing these transactions?
Hope I'm not being a pain with the questions!

Thanks again!! Laughing out loud

-Liliana C.


No Pain, No Gain.....

YES, you will need the services of either a TITLE COMPANY or RE ATTORNEY in order to close your transactions and get PAID! CASH IS KING, $CHA CHING$ Sticking out tongue

__________________

YOUR HERO, SULLY


Great lesson...

YES it is!.lol.. OK I'll get started looking at those websites. Thank you for the lesson!!..Is class dismissed?..lol!! Sticking out tongue
Thanks for all the info and the help!!!

-Liliana C.


That and...

Bird doging is a good way to start with no money and without risk. Per the coaches, good way to earn as you learn! Smiling

Dawn

__________________

Life's a Dance you learn as you go...GET HAPPY FEET!

"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie


Greetings to the entire DG Family.

Hello all, I am a new REI in California (Never done it before). 32 years of age and ready to be comfortable in life. Tired of the paycheck to paycheck living. I have a son who is 8 years old and I am recently engaged. The wedding is set for 09/20/2009 a year from 2 days ago (whos counting, lol Sticking out tongue) I wanna have a nice wedding.

I have read alot of these posts and find them very uplifting and motivational. I love to see regular people like me doing this and doing it well. I am definitely looking forward to posting alot and learning alot. My mouth is closed and my mind and ears are very open to new things. I have probably $11.00 In my bank account right now and Im ready to look alot better financially speaking. I just scoped out my first house a town away from me on the way hom from dropping my son off at school. Its got a crappy paint job, (Each side of the house is a different color and was done quite poorly as I am a house painter by trade currently which will help me out alot, I dont have to find a painter) yard is all weeds and brown, it has hard wood floors. But Im getting off the subject I think. Back to the 11 bucks in my bank. I need to (IF the house is worth it, "Is the squeeze worth the Juice"? we will see) obviously do an assign and pass this on to another investor for a finders fee. Once I figure out what the FMV is on the house how do I decide how much more I should sell it to an investor for? Is this a personally generated number? or somehow calculated using the FMV. I havent gotten my package yet in the mail. I may be working to fast or getting ahead, but thats how I roll. ACTIONS speak louder than words.


Hi Dion....

....welcome here in this forum. I'm in a hurry (picking up MY kid from school). Just a quick repsonse: Did you try to find the FMV on zillow.com? Usually you can get fairly good ARV (After Repair Value) for your HM loan (HM = Hard Money.... I guess you are familiar with this?).... HMLs (HM Lenders) often ask for the value the house had 5 years ago (in 2003). If you think you can find the contractor/crew to rehab this property you definitely should look into HM loans. As to how to calculate finders fees etc., I would suggest that you first....

+ do your "due diligence" (find out all the facts about the property), then
+ decide on your "exit strategy" (what you are going to do with the house)
+ and only then think of figuring out your fee.

For every scenario there are different formulas to use (i.e. how much your maximum purchase price can be). Let's say you want to buy it wholesale, and therefore get a HM loan to buy and fix it up... you usually need to buy at or below 65% of ARV.

Sorry, but I gotta run now.... send me an email if you need more detailed info or help. GREAT that you are ready to pounce! That's the attitude.... just take enough time to get your facts straight, ok?! Eye-wink

Conny

__________________

"POOR people own big TVs. RICH people own big libraries."


Assignment - I'm confused

Hey All

Everyone has a different way to go about things, and now I'm completly lost and confused. what forms does the seller sign, and what forms do I give to the buyer to sign. After the selle signes their forms and the buyer signs their's, what do I do?

Thanks for your help
Anne


HELP PLEASE

There is so much information going around, that I have now become officially confused. Can someone please explain what contracts the seller gets, and what contracts do the buyers get. After everything is signed by the seller and buyer what happens next? What do I do?

Thanks for your help

Anne


NOT YET on MLS, not "officially" for sale

fende240 wrote:
Hey yall!

I found an Investor in my area who is looking for good deals and will pay a finders fee. Should I search in Preforclosures for a good property to lock up and assign?

I found a guy who is in the sacramento California area who is offering a $1000.00 finders fee for distressed properties, commercial properties, apartment buildings, warehouse, theatres, etc. Says he has cash on hand and eventually wants to open up an office. Also almost has real estate license. Initially my thought is this would be a good person to make a long term friend with. He says he is looking forward to working with me. How would I go about finding properties that arent "Officially for sale". and NOT listed in the MLS? I suspect that looking in the areas tax roll, assesors roll etc could have some good leads in it. Maybe there is a better way.

My eyes and mind are open. Also I dont have the money to get walked through my first 5 deals or purchase the AFF etc (Still my trial period though). although I am head strong and Im not gonna let ANYTHING stop me from my aspirations of being a SUCCESSFUL REI. Thanks in Advance Smiling I started with the program Last friday.

"Always make sure the squeeze is worth the Juice" Smiling


Thanks for the welcome Conny

I actually just recently learned of the hard money loan. Apparently if your numbers are good, then you can usually get the money to buy no problem? I just need to do the "Due Diligence" and learn about the property. I have spoken with someone interested in houses in my area. I dont know if he is an investor or a regular old buyer. Both are good if they have the means to purchase I suppose. the house is listed right now for $166,000.00, there was a family who was going to buy it but thier loan fell through and are trying to get another loan. The realtor that is working on selling the property says he will take other offers on this house. So I guess from what you are saying, I need to find out what the FMV and or ARV (are those kinda the same? or are repairs gonna make the house worth more? I suppose that depends on what kind of repairs are made? Hmmm...) OR is FMV the price that is set by an assesor who comes in and takes the measurements looks at the condition of the house and sets the FMV? I have a vague knowledge of how these facts are established. Anyway, I definitely could easily put together a Rehab team on the fly from my list of contacts I made while working my painting business. I am basically the painting guy obviously (BTW anyone in Cali needing a good painter on thier POWER team lemme know) Northern cali here. Sticking out tongue (am I allowed to say that? lol )anyway, I digress... I need to get good at doing the research basically. ALSO need to read the books too. Most of what I have learned has come from just the forums and learning things from various sites all over the internet. Sticking out tongue

After establishing the ARV is arrived upon I make an offer? For 65% of the ARV. Telling him at the same time that I plan to rehab the home? If I do decide to rehab a home, do those costs come from my pocket? (I only imagine they would, and since I have no money I dont know that I could incur AND survive those costs. in fact I know I dont have that kind of money). Thinking outside the box would dictate that I find a way to generate the capitol to rehab, RENT the house out and collect rent monthly. AHHHH so many ideas and scenarios going through my head. Sticking out tongue

I hope Im not hard to follow. Sticking out tongue

I have deans package now (RUSH Delivery of course) ordered the 16th got it the 19th by the way. Smiling I am NOW reading and I imagine most of this will come into focus for me. IM DEFINITELY a DOER at this point. Painting has really slowed down for me and I am sorta not working so I am putting LIKE ALL my ducks in one basket with this right now. Fiance is kinda freaked out at how obsessed I am at making this work for us. (I am searching for a "job" though, I just KNOW I can nail this though) Smiling I got the FIRE and IM ABSOLUTLY a people person. (Im rambling huh)


Hi Rina, Im Dion. Nice to meet you!

Rina wrote:
"Locking up" a property gives you the sole right to PURCHASE that property up until the closing date set in the contract. In order to be able to MARKET the property brfore you own it, you must make sure that that is written clearly into the purchase agreement, signed by the seller. AND make sure your realtor understands what your intentions are.

Rina

1. It is recomended that one works with a realtor?

In reading the "Agreement to purchase" that Dean provides us it seemed to me that info is pre written:

Agreement to Purchase
This is a legally binding contract. If you do not understand this
contract, please seek legal council.
THIS AGREEMENT entered into on the _____ day of _________, 20____ by and
between,
______________________________ or his/her/their assignee(s), hereinafter
referred to as "Buyer", and __________________________________,
Hereinafter referred to as "Seller".

does the line with "or his/her/their assignee(s)" establish your right to market the property before you own it? Where does that info re: intention get written into the contract if I am incorrect?. I understand that LACK of communication creates frustration for sure.

Respectfully

Dion


fsbo properties are a good assign?

Sully,

Thanks for that great info!!!!
With fsbo properties...

Can you assign them? I mean do you need bank approval when you make offer or do you deal directly with the owner?

I am currently researching vacant properties and negotiating price directly with owner, making offer, locking in and re-assigning the contract. Can I do this with a fsbo advertised on these sites or is there a realtor involved, bank approval needed etc...?

__________________

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10

http://realwholesaling.com FREE wholesaling tips and resources!

To your success,
Carol Stinson


How do you Lock up the property

How do you Lock up the property?


hey carol, sully's here!

carol, FSBO's are just like a regular old person selling their car on their own, same concept here. The FSBO is a seller that could be potentially MOTIVATED or he/she could NOT be MOTIVATED, see some FSBO's just like to sell their property them selves because they feel like: why should i pay a realtor 3% of MY HOUSE, which is justifiable, i mean, some properties thats like $10,000. Dosen't help that this same type of FSBO looks at realtors as "SNAKES" too.
Then you have the MOTIVATED FSBO, he/she is the one your interested in dealing with, these FSBO's generally have a VERY LIMITED time period to sell, could be that the property is getting Auctioned off in a month(they waited too long) or JOB RELOCATION, RECENT DIVORCE, PROBATE, PRE-FORECLOSURE, etc

So, to answer your questions: YES, they can be ASSIGNED, and NO you do NOT need any kind of bank a APPROVAL, you make your offers DIRECTLY with the homeowners

__________________

YOUR HERO, SULLY


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