Assignment Contract and Flipping

Hello HarNely,

Flipping a property is when you buy the property for less then market Value and sale it for more then what you purchased it for to make a profit..You want to make sure you get the investment is worth it so you can make your money back.

A Contract of Assignment is when you find a great deal and you know you do not have the funds to purchase the property, but would like to make money off the deal for finding it. You offer the seller a lesser price then what they are trying to sale the property for. Once you and the seller come to a good ooffer, Then you sale the property to the buyer for more then what you and the seller discussed. And this is how you make a profit. But you sign a assignment of contract so they can not sell the property while you meet with potential buyers. And basically you are the owner of the property to what you'd like to do with it.

So what you are saying is, when you flip a property, you need to actually get the funds, whether its cash or financing and purchase it and then sell at a higher price? In this case, would you be able to sell within, let's say, a month if you have a buyer? Isn't there a specific amount of time you need to have the house before you can sell without any penalties?
Im still learning and very new to this so, I'm sorry if i get annoying.

Aris A.

Yes! You need to get a certain type of loan that allows you to sell right a way. It's in deans book.. I also think you have to borrow from a private lender too. Yes flipping is buying low saling high for a profit. For example.. If I buy a house thats for sale for 40,000.00 and get it appraised and it's worth 96,000.00 After minor repairs. I profit 56,000.00 dollars on this property.. I am new too. But I have some knowledge. does this make sense?

Thanks for making it clear for me MzLatezha. Makes sense.

There is a prop I'm interested in going after and i have spoken to the homeowner.
What i need to know is: How do i put in the offer to the homeowner? Do I do it verbally, over the phone, or do I need to fill out any kind of form and submit it to her? If so, what from do i use? The purchase agreement contract?

Any help would be appreciated. I'm not sure on exactly what steps i need to take from beginning to end.

Aris A.
From LA

section 4 financing How to fill out

Hello,

I'm still a newbie but I do know that I would like to flip several properties. Where I live, there are A LOT of foreclosures, REO and vacant properties. A lot of them are being sold WAY below their value so they can get be rid of.

For example, my realtor sold a house to another investor for $101K (that's a steal!!!). The investor is going to fix it up and flip it for around $250-$300K. Talk about making money! I wish I got that property!

I'm currently working on getting a couple assignments on properties since I have no funds to buy anything. Hopefully I can a few deals before this year is out.

You're gonna like Dean's books. It makes sense without the weird mumbo gumbo of similar books out there.

Hello R.E.Budda
I'm a newbie too, and what i know is it is best to start off with assigning if you have no money for down or a good credit. It is also the easiest way to start if I'm not mistaking.
That's how I'm planning on starting. There is currently a property I'm looking at and just need some help on some "how to's" to get that property locked up and it will be a start in my REI career. Can't wait till i get the book.

Many luck to you with the properties you're working on. Just like i think Anita says "DO IT!"

Keep us posted with your progress on the props you're working on.

Aris A.
From LA

Aris, are you LA as in Los Angeles or LA as in Lousinanna?

If you're in Los Angeles, I live in Ventura County.
I was talking to my realtors last night and they said that Banks do NOT like assignments. Meaning that if the properties are foreclosed, REO, etc.

If you start doing assignments, find some FSBO (which I'm working on) and talk to a couple realtors/ RE agents and ask if they can work with you on it. It doesn't hurt to ask. Or look for pre-forclosed properties. As long as the bank doesn't own it, we should be able to lock up the property on contract.

If you want to follow my journey, click on the link in my signature. It's my daily journal.

I live in Los Angeles R.E.Budda. (BTW nice username)

I absolutely agree with you on finding FSBO's for assigning.
And I apreciate your input. When dealing with banks on foreclosures, REO etc., those are best when you're going to be flipping. If I'm wrong please correct me, anyone.

I have learned a lot from the DGFamily!!! Everyone of you in here is just soo GREAT and HELPFUL and us newbies can learn a lot. I came to know that assigning contracts works best with FSBO's, like you said, and preforclosures. I am definitely going to speak with a few realtors once i finish with Dean's book. I have still so much to learn without an end. I think one can never learn enough.

I will definitely follow your journey and once i get setup and started i will post my journey here too.

Aris A.
From LA

Hi Aris,

Flipping would be best for foreclosures, reo, ect. My RE Agents said the same thing to me.

I think assignments will work on any property as long as the bank doesn't own it and you can talk and negotiate with the seller yourself.

When you look for a RE Agent, place your ads on craigslist, trulia and zillow. I found my RE Agents through trulia and couple responses on craigslist. If you need help with your ad, let me know and I'll send you what I wrote.

Keep reading and learning. I'm still learning but I slowed myself down because I was getting a little bit overwhelmed, LOL! We (DG Family) are here for everyone because we all have a common goal of becoming successful in our lives.

When you have your journal up, PM me so I can follow along.

Hi HarNely,
I Agree with you that the best place to get started is with assignment contracts. It's exciting to know that this is a life changing event about to take place here with DG's help. I received the book on May 11. And at first thought this was going to be so hard for me, even the computer part of it. But it all seems to be coming easier. I can't wait to see were we are going to be 30 days from now, can you? Great Success To ALL.....

MyDestiny

I'm going to start hunting for that killer agent very soon!!! And as you suggested, I will start posting some ads targeting RE agents locally, and thank you so very much for offering help with posting the ad. I sure can use some help with catchy wording to attract some RE agents. It would be nice to see what you wrote in your ad.

It's ok to slow down a bit and take a short break, but don't you let anything stop or discourage you no matter what!!! we are the future real estate MILLIONAIRES!!!

Aris A.
From LA

Hello MyDestiny,
This is a life changing opportunity! I was so excited and motivated once i flipped the first couple pages of DG's book. I knew i had made the right choice and, no matter how hard it may have seemed, i have decided to burn all bridges behind me and just keep going forward. i suggest you do the same!!! I have failed before on a career i wanted to pursue and now i am using that as a stepping stone to SUCCESS.

And, yes i can see myself 30 days from now . I see myself closing on at least 1 or 2 deals and having a great network built up.

Have you finished reading the book? If not, keep reading it and practice, ask questions and what ever it takes. just keep going forward.

Good luck to you!!!

Aris A.
From LA

The answer you are looking for is...People! The word people can be more than anybody could ever imagine...Imagine that!Somebody needs to put me on the payroll? Here is my crash coarse in people,If you do not do it then they will. I really hate rules but you have one coming! How far are you willing to go to get that DEAL DONE? My point is...If you are willing too do what it takes then get that deal...We can always cry later!
From when time has started...When the day it stops...People will make the difference.
It is never about being right, Just doing the best we can thru what we know!

Rand/2for1
P.S.This is a trick statement (smiley face)

I know Dean Says you can make money in any market, but...

I'm investing in Detroit, and no one is buying (other than investors), and the prices are so low (40%-80% of FMV) that it seems like it's not a smart place to invest.

Does it make sense to invest and/or wholesale in an area where anybody and everybody (and I do mean anybody) can get an 80k-150k home for 20k or less (waaaaay less)?

While I am quite new to this, I believe the philosophy you need to adopt and realize is that we are ultimately helping people! This is a niche that we can excel at, and the niche isn't only finding the great deals - it is also helping people get into homes that they believe that they couldn't get into to begin with. By having a savvy mortgage broker, you can help people get financing or get their credit back into shape to purchase within X months, and then they can purchase from you (presuming you set up a lease option from seller, and then made it a rent-to-own option with your buyer.) So, your strength will be getting people on the edge of getting qualified the financing to buy your killer deal from you. This is the untapped market which will allow you to make profit.

Again, I am new to this too, so if any of the more experienced people out there sees an error in what I said, by all means please correct me!!

Darryl

Hi everyone,

Just finish reading chapter 8 in the book. It covers pretty much everything on doing an assignment deal. I took notice that Dean strongly advises to use an attorney instead of a title company. Just figure I would share this because I have read alot of post talking of using title companies for this transaction. Some were having trouble because the title companies were saying that this was illegal. Thought this would be helpful into keeping all of us on the right track.
I have faced many challenges my in life. But the one thing that was the hardest habit to learn was to keep things simple. I feel Dean has delivered this opportunity on a silver pladder. All I have to do now is take it and run for a spiritual, financial life changing event. Hope to see all of you there!! Thanks for all the support that is given by everyone. Great success! Lubertha

I am so pleased with everyone's info.. I feel the best way to start is with assignment of contracts. This is a great way for people who have no money at all to start making 5,000 to 10,000.00 on deals.

When you are dealing with investors. You need to act as if your an investor, explain that you are new and are looking for a business partner that knows the ropes. The investor can put up the money on the property and you would have to fix every thing and make sure it gets sold for market value. Then you and the investor split the propfit 50/50. The investor puts up the money and you do all the hard work until you make enough to buy your own home. Investors are every where. Remember when you are dealing with other peoples money you need to be sharp and know what you are talking about. A investor has to trust you with his money. I hope this is helpful

What is the average amount everybody is making on a assignment?

if a homeowner is behind 5months on payments and is upside down on mortgage, and the homeowner just wants to walk away and be done with it, can i do contract of assingment and then start short sale process with the bank?

I was wondering how you find the REO's and foreclosures? Are they listed somewhere at the court house?

Dean's foreclosure site really works good. You can sign up and find pre foreclosures and foreclosures. Try it out. www.4closurealert.com..... Good luck.

Excellent question! I have wondered the same thing, I just haven't posted it yet. Dean's recent blog on short sales states "A potential buyer may offer the lender a sum less than the amount owed and, if the lender is agreeable, may purchase it with the permission of the current owner." This makes me think that we can't technically do an offer to purchase with the owner because they can't know what the bank will be willing to short sale for. Therefore, I believe the bank is the one to negotiate with, once you have the homeowner's permission...heck, maybe even without but it will likely go much smoother if they are agreeable. Once you agree on a price (with the bank,) then the paperwork ensues, and the homeowner simply agrees to allowing the house to be short-saled.

For the more experienced DG members...is this logic correct, or flawed? Input will be greatly appreciated!!

Darryl

Hi Darryl,

Your correct. That is the process. But must have the owner's permission to talk with the lender for legal reason's. It's personal information the bank won't release it just to you. Just keep in mind when dealing with bank foreclosures. They take time. The home owner is basically a silent partner in this. Yo do the negotiating from that point. Continued success to you........Lubertha

Hope Im doing this right. Can I approach a house that has a sign up from a realtor or if its a REO,Foreclosure or Pre-F, or just with a lock on it. Also do I find out about the property first thru records search at court house.
Then after that find out what the price is then offer low. If it's a go do I make a contract on house without putting money down. Then have between 30-60 days to sell it or back out.

An investment company emailed me and he states he want to flip them. Would he then be my end buyer. If the house goes for say 130,000 and I sell it to end buyer for 140,000 how do I get the difference without anyone knowing the profit margin. I have so many Question in my head. help!

Hi Wm357,

You can approach any house that is for sale. It should be easier to contact the listing agent to get the info. Before you offer anything you have to know what conditon the house is in. You have to take in account repairs and your fee, and who your looking to sell it back to, etc. Short sales are a long process. If an investor is looking for a quick flip. FSBO would be easier to work with than a bank. Hope this helps. Continued success.....Lubertha

I don't realy want a long process. I called one agent and they asked me if Im a realtor. They only told me what the house listed for and thats it.

The realtor who I talked to for information told me that if I talked with another agent on a house he can't get involved to help me. I would have to go thru him. He also gave me access to MLS list thru his website. Does this sound right. Thanks

An agent who wants to sell their listing or a home will pull the listing sheet for you to see room sizes when it was built, lot & block and so forth. In my day you find that buyers can be unloyal. You have the right to buy and see from any agent you please. Unless you sign an agreement that they are the only agent to represent you. How can they tell you who to buy thru. Agent's don't like splitting their comissions. If this agent allowed you to use MLS, then pull the listing info from there. MLS is only suppose to be accessible to realtors. Much success.......Luberha