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

Hello...I am new to this site by like you, am an entrepreneur who has done a variety of things.

Thanks for sharing your knowledge. It sounds like this might your "main" business, assigning. Is that true? I want it to be mine as I really don't want any more rentals right now but need to take this real estate venture full-time.

How do I find out if it is legal in Ohio?

Is this the gist of it?

1. Find deals FSBO OR real-estate listed
2. Write offers which has an Me "or Assign" in it
3. Make sure I have an escape clause (Inspection or Finance)
4. Find Buyer..easier said than done

It seems this strategy would not work with REO's with their requirements (true?).. which is mostly where I am finding the steals.

I admire your confidence.

Hello there..Did you form a LLC before doing your first assignment deal? I have 3 rentals and have never formed a LLC but am thinking perhaps I should before I elevate this business..thoughts?

When banks require proof of financing with offers, how do you do assignments? In one way I can see where banks would welcome any help they can get in selling these properties..in another way..it seems that assigning would be hard to do with REO's? I REALLY want to do this but am just unclear of what I should first..I've found lots of REO's I could write offers on but thought I could not without proof of funds? Please help...

Look at some of the threads that talk about double closings. There is also some information on this site about lenders who finance the first stage of a double closing.

Al

Anita, You give great advice. I am new and trying to start but have been the chicken. So, I can totally relate to your comments. I keep from making the offers thinking they are going to ask me to prove I have the money to purchase in order to close the contract. Has this happen to you or anyone? Pls. advise.

Irma

When making the deal for a foreclosure and using the and or assigns, what do you show to the realtor for buying the property? Do you need a pre-qual? What if you do not have the cash to buy in full? What do you explain to the realtor in how you will buy the property?

Hi Sorry it took so long for me to reply i have been really bust lately,

Ok, when a realtor ask or proof of funds. First of all, not every offer has to be put in with proof of funds letter and if you write it into your of as a contingency - contingent upon final financing approval - that should in most cases be acceptable.

If they insist on one, make a verbal offer and tell them that proof will be provided upon acceptance ONLY. Hardball them if you have to because right npw any sale they make is a much needed one.

Hope that helps....I am sure i will get a lot of flack from the realtors on here (AL) but thats ok because what works fo me may not work for all. So keep your head up and push on.

I don't dissagree with you. If the seller is not requiring proof of funds, I think your approach is a good one. The Realtor is not the one requiring the proof of funds, the seller is. If the seller puts that on their listing info, then the Agents are expected to respect their wishes. You might have your Agent contact the listing Agent to see what they will allow. In this market, sellers are making allowances. But, I think a phone call is the best way to approach it.

Al

I can always depend on our IN_HOUSE REALTOR!!

Merry Christmas

Hi Anita, I have a quick question...The contracts require you click cash or financing as a means of purchasing the property. What if for example, I choose "cash" but the person I find to assign the contract to ends up using "financing" or vice versa. Will that void the contract or does that affect the contract from going through?

What if you use an Agreement to Purchase rather thatn a Purchase and Sale Agreement? Is their any difference betweeen the two. I am confused on which form to use when assigning. Also, should i include my own personal address on the forms being as i am assigning it to an end-buyer. Please advise. This is my first assignment and i want to get it right. Any input would be greatly appreceiated.

Chas

When assigning deals, do you have to put down any earnest money?

Also, in your experience did the owners feel comfortable with you giving them $10 bucks for earnest money?

I don't want to put down earnest money if I don't have to. But hey i'm new to this. I thank you all for this post. I am soaking it up.

Thanks for answering my last question, your the greatest.

Do you have to put down any earnest money and if not do you erase the clause in Deans purchase agreement contract? Also, how can u presuade the seller to not get any earnest money. Thanks

Do you get your assignment money when the buyer signs or after closing.
Thanks

Williams9812 I found these post for you.

to answer your question about "Earnest Money" deposits, What you had stated is the exact reason why i ONLY give $10-$20 bucks as MY "Earnest Money" Deposit, it's used just to "Tie Up" the property, then if the seller wants more money for a deposit, i'll make additional moneys due at close, SULLY.

__________________

YOUR HERO, SULLY

Most of the time you only have to give the agent an earnest money check if the offer is accepted. If you do have to hand over a check at the time of the offer and the bank cashes the check then they just accepted your offer by cashing the check. When making multiple offers just make a photo copy of the check and send that with the offer. Some banks do require a $1000 minimum earnest money check.

By cbrpower

In an and/or assigns transaction do I contact the homeowner? My scenarios is this. The home is in risk of foreclosure ( found data via records etc.) So, the home is worth 350 the banknote is 250. I then go to the homewner and tell them I am looking to help them , and tell them I would like to lock up the home and purchase it for 250, or do I go through my realtor and offer somthing lower that will make it more of a short sale? Assuming I am right thus far, I contact my realtor to get the deal going, ensure its my name and/or assigns, find an investor and sell them the right to buy this deal for say 275. At closing, I then walk away with 25k.

Thanks in advance for your help
Amy

Why would you get your realtor involved in a deal like this?? What value are they adding? And how will they get paid?

It sounds like the home isn't for sale. Just go straight to the homeowner, right up your contract for a sales price of 250K.

Under purchaser you would write: Amy and/or assigns.

Then sell the contract to another investor.

Since I used methods to get the information that the home was on the brink of foreclosure the way I approach the homeowner is what? Do I knock on thier door, send them mail , put a sign on thier door? This is where my struggle is. Additionally, is there a formula used to figure out the FMV on a deal?
Thanks for your help

Ms. Anita how are you doing my name is King and as I was reading the advice you were giving to the gentleman who was confused about how to use the and/or assign method I was truly suprised because you made it sound so easy to do. I am currently reading deans book I'm on the 14th chp. and I am interested in geting started soon if understanding the advice you gave the gentleman if I find house for say 155k and the Fmv is 190K all I have to do is lock up the price that going to give me a nice profit that sounds great ,but is it really that easy what other step would I need to learn before I try this method. Thanks and God Bless King

Hi King

Sorry for the delay in answering but here goes. You should make an offer thats low but fair enough that you feel the seller would go for. Make sure you profit margin gap is enough for you to make a few good bucks and write your contract offer so that you have clauses that will allow you walk away if deal does not seem to be working.

Hi Amy, I don't know if you were able to receive an answer to your questions... If not, you can PM or email me at: reiproperty4u@**** .... I would be more than willing to assist you.... Shalom!

Just wanted to pass on feedback I've gotten from realtors. When finding realtors try to find ones who work with investors and not just end-buyers. Your local REI association is a good place to find investor-friendly realtors.

Better yet, work with realtors who ARE investors/landlords themselves. These people are gems because you can get so much info from them. We (my partner & I) picked the brain of a realtor/investor tonight (who is working on a deal with us) and we got a lot a valuable info on what to look for when evaluating a property, landlording, etc. The property we made the offer on is a duplex and we'll have to occupy one unit (at least for one year) because our financing is through FHA. Btw, if you can quality for FHA or USDA these are great programs for owner-occupied.

Be careful when using assignment of contract with realtors. Be sure you can assign the deal because realtors don't like having a property tied up for 30 days only to have the deal fall through.

One thing the realtor we're working with complained about is doing all the paperwork on offers he knows won't get accepted. So even though "if the offer doesn't make you embarrassed it's not low enough" is good advice, remember if you're making the offers through a realtor you're tying up his/her time and where we live realtors purchase offers are 12 pages long!

Do you find that sending in your own short sale package and offer is more successful than an agent doing it for you?
When sending an offer on a SS prop, I won't know for quite some time if my offer is accepted. Therefore, how and when do I market the prop to an end investor if in not certain of price or offer acceptance?
Any success on SS offers being submitted with "and/or assigns"?
Mati

Anita,
What kind of clause do you used in case your end buyer backs out of the deal to protect you from having to actually buying the property?? And what type of contract do you used when sending offers??

Thanks,
Santana Vasquez

Hi Anita,

I am a new student...started last week. I am from California and I am a Realtor here also. I've read your story in the book...I believe you are from Lancaster California(?). Do you use the CAR form for Residential Purchase Agreement? If you have an agent, she should be using the CAR forms, correct? Didn't she get in trouble with her Broker preparing a contract with and/or assigns after his/her client's name? Pls. advise.

Hi Anita,
Do you use and/or assignee with bank owned properties?
Thank you for all of your great information!!!

Hello Marizel

Yes he uses CAR as do I, and No he did not and has not got in trouble about using and/or assigns on them

5HEnterprises wrote:

Hi Anita,
Do you use and/or assignee with bank owned properties?
Thank you for all of your great information!!!

Yes I do - I use it with ALL properties. Its the only way I will do business. Whether I am holding/ assigning or selling it makes no matter - I always use it just to have that option available if needed.

Hello Marizel

Yes he uses CAR as do I, and No he did not and has not got in trouble about using and/or assigns on them

IM NEW,EAGER,BUT NERVOUS.HOW WOULD I GET STARTED? I HAVE PLENTY OF FSBO'S IN MY NIEGHBORHOOD, AND PLENTY OF " WE BUY HOUSES" TOO. BUT IM A BIT NERVOUS TO TALK TO THE SELLERS MAINLY BECAUSE I DONT WANT TO SOUND AS IF I DONT KNOW WHAT IM DOING. DO I NEED AN AGENT? COULD YOU HELP ME PLEASE!