Assignments

Tim,

I never tell my seller exactly what my exit strategy is, especially I have no money, must find a buyer then and only then can I close. That is basically what you are telling them. First, I negotiate the buy price as if I am the buyer.

After we negotiate the price I tell them that I do what I do to make money. Either I will close or one of my money partners will close. Either way I am going to sell the property for more than I paid. This is how I make my living. So I have fully disclosed to the seller my intentions without revealing TMI (to much information) I confirm with them that the price we have agreed on is acceptable to them. Once again I will be selling for more that I paid, whether I fix it up and sell it or I have one of my investors buy it. That's it.

With that said, don't screw over the seller and waste their time. Have real buyers in place, Know the numbers on the deal and make sure you can close the deal. The seller won't care if you assign the contract to one of your buyers as long as you close. The seller ALREADY knows you will be making money.

When I get the assignment contract signed and non refundable earnest money in the bank or in escrow I call the seller and let them know I have decided to hand the deal over to one of my fellow investors. I made xxxx amount to do so.(full disclosure BEFORE closing) I will still be there at closing to make sure everything goes well.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I conquer with Michael. I will never enter into any type of negotiation with a seller unless I have a fairly solid buyer. You’ll never have 100% that your buyer is on board until you get into it, but I try and have a pretty good idea of who will be interested in the property. Then do as Michael stated. Negotiate the deal as if you’re the buyer. Disclose what you need to, but don’t over state things. It tends to make the seller nervous, and in some cases can cause the deal to fail. Let them know you have partners you work with, and that either you or your partner will be closing this deal. Again, wait to say that till you have a buyer that’s on board.
Good luck

When assigning contracts does the buyer pays for the closing and the seller net? And if buyer pays for the closing how is all that included with your priceing? Thanks.

see link and calculate the numbers