OfflineHi,
After tons of reading on this site and others I'm still getting mixed responses and ideas on who pays the closing fees and such when doing assignments.
Were going to do assignments exclusively, no fixing and flipping right now.
We still read where the assignor pays the closing and title fees, and some that say you don't pay none of that, it is between the buyer and seller, not you.
And we have even read where to make an offer on a place it wouldn't be a bad idea to be pre-approved for the amount of the purchase price of the home you are going to assign.
Seeing as we are new to this, totally new, these mixed reviews have us scratching our heads.
If were assigning the property to another buyer, not us, why would we have to pay the closing and title fees and for that matter why should we have to be pre-qualified for the purchase price, were not buying it and have no intentions of buying it.
I have spent the last 2 months doing nothing but reading on this subject, and we still have blank spaces that need to be filled in, it would be nice to have a mentor to work with but once again that involves large sums of money, we are shoe-stringing this, if and when we get the money rolling in then we'd be able to put the money towards some formal training, which would be a plus for us.
But to do the first assignment with no money down is still out of reach until we fill in the blanks so to speak.
So many mixed thoughts and reviews I can see why so many are still scratching their heads:) I have even read that assignments are illegal in certain states and that you need a real estate licenses to do it. I'm sure you all here have run across the same things too, we are anxious to get this going but still feel that unless the definitive answer, if there is one, can be given, were at a standstill here.
The basic question is: Are no money down assignments possible, I can see the $100.00 earnest money being needed when setting up a purchase contract, but us paying all the fees and being pre-qualified don't make sense.
Thanks for your time and patience
Gary
Hi Gary
I guess you are a goldpanner from Georgia? I know a lot of people who pan for gold in a town called Donelagah Georgia. I think I pronounced that city right?
As far as closing costs...you are in no way going to pay closing as the assignor of a contract. You just collect your assignment fee and then the seller and end buyer will handle all the closing costs.
You get with your seller and decide if they want to pay their 50% of the closing or push it all off on the person who ends up being your end buyer of the property.
If you decide that the buyer pays 100% closing then advertize it that way.
If they only have to pay 50% then advertise it that way.
Put it on the contract that buyer pays closing or that each pays his or her own closing costs.
Remember in real estate everything is negotiable.
Hope that helps a little
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Whatever is accepted in the original purchase agreement is to be followed by the assignee once you have sold the contract to them. If there is any more negotiating from that point on between buyer and seller, it is the assignees responsibility. The assignee will pay you back any earnest money that you have put down, if that's what you've agreed upon. You will either collect your assignment fee up-front and not have it part of the closing, OR it will be part of the HUD-1 settlement statement buyer expenses and you will collect your fee at closing. The assignee will be responsible for all buyer's closing costs, whatever is outlined in the original purchase contract. Depending on what is typical in your state, buyer may pay for title insurance or seller may. BUT of course that can be negotiated in the original contract. The assignor is NOT responsible for carrying out any terms of the contract once it has been "assigned". Just cross your fingers that your end buyer DOES. JK. You will only work with trustworthy investors/buyers.
Rina
P.S. As far as being pre-approved, that will help you make offers and lock up deals because you would have proof-of-funds to show if asked for. Not necessary though.
"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
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Thank you both for clearing things up for me, it makes more sense now, I appreciate the quick responses.
Oh and Sissy were not from Georgia, we are located in Northern Wisconsin, we haven't drove around yet to see what is available in the for sale by owner world by us.
I have a feeling we will have to do some major driving because most of the properties up where we are at are vacation homes and a lot of out of staters have these cabins and such as weekend get-a-ways, by cabins I mean $500,000 homes:)
Once again thank you both, now our next step is getting our contracts written just right to be able to protect us properly, I grabbed the basic ones here on the site but I know I will need to add more to them.
We are also taking the advice we received off this site on taking our contracts to a real estate attorney and having him or her go over them to be sure were legal on what we have written:)
Thank you again:)