Putting offers with assignment clause, what is the proper way of doing it

I would at least put a inspection clause in the contact.

Yes, that goes without saying. The usual stuff, inspection clause and such. I want to leave myself a way out in case i can't find an investor to assign the property to.

Hi guys,
What exactly do you guys write in the offer when you use an inspection clause for an exit strategy? Can you be specific? How much time do you have since your offer is accepted to excercise this exit strategy if you don't find a buyer?

Yuri, we put the following clause in our offers:

"Buyer has the unqualified right to assign his interest in this contract prior to settlement to any person, corporation or entity which he may designate."

We got the suggestion from one of the coaches at the Success Academy. He felt it was a good way around putting "and/or assignee" in the buyer's line on the purchase agreement.

Of course, we use the inspection clauses, too. IVANLAMBO, here is the clause we use. Others may have differently worded clauses.

"This offer is subject to property inspection by a licensed home inspector, the results of which must meet buyer's satisfaction."

Thanks a lot!!! Anything else you are putting there that I can use? How about a right to terminate the agreement if you do not find the assignee?

Yuri, the only other clause we put in is the standard walk-through inspection clause (at least I think it's standard!!) :

"This offer is subject to buyer's walk-through inspection and/or buyer's partner's walk-through inspection and acceptance of same delivered to seller within 17 days of seller's acceptance of this offer to purchase."

I don't know of an exit clause you can use if you don't find an end-buyer. We just figured we would use the inspection clause to get out if we can't find someone to assign it to. Given the state of the REOs we are looking at, it shouldn't be too hard to find a reason to exit based on inspection!

We were told that we don't want too many clauses, as this can be seen as a nuisance, but our realtor thinks we also need to include instructions that the seller pay for all termite. She says that is standard on all offers, so we go with that.

Hey There,

Here are 3 very simple items that we put in all of our contract:

1. a simple "and/or assigns" always works. If someone has an issue with that they may not be motivated enough.

2. "This offer is contingent upon Partner's approval" (this gives you a great out - you do not have to have a defined partner, nor do you have to pay for a Certified/Licensed Inspector). Several people also like to use "pending financing approval" We do not use this one much as we often make our offers as cash offers to help negociate a lower price.

3. "Property must close at Buyer's Title Company" Any time you are doing an assignment or double close you want to keep control of the transaction. Keeping the transaction with professionals that understand what you are doing and how the process works is key.

Yuri, I'm a newbie. Have done no deals (yet), so I don't feel qualified to give any advice on any subject. But, I'm reading 'Profit From Real Estate Right Now!' and boy-howdy, it is good. So much information! Dean gives step-by-step, how-to info and covers contracts, assigns, ernest money, EVERYTHING. If you have a question, it's a good bet that Dean covers it in this book. If you haven't read it, do yourself a favor and get it as soon as possible. It will open up the world of investing for you and give you confidence in yourself and your investing. And, nope, Dean ain't paying me to say this! LOL! God Bless, and happy investing!

Sandi

I have read the book in 2 days it was so good!!! However, I always like to get other people's opinions as well. Different things work for different people, so the more opinions you have, the more options you have.

Yuri

Thanks so much guys for your input. I really appreciate this.