Offline1. Find a deal that matches what your buyer is looking for at enough of a discount where the investor would be willing to pay $3-10K more than you got it under contract for.
2. Market it to your buyer at the price you got it for plus your assignment fee, but just let him know what he can get it for and don't bring up the assignment.
3. Once your buyer agrees to pay the amount you specified and is ready to replace your earnest money "non-refundable", then and only then do you assign the contract to him.
4. Make sure the title company closing the deal gets your assignment of contract so they know to pay you and give them your wire instructions unless you want to pick up the check at title after closing.
The end buyer pays the title company the full amount plus your assignment, and then the title company then pays you your fee.
Hope this helps,
D
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breakdown! Thanks for sharing.
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1. Find a deal.. Any Deal.
2. Market to any and every one
3. Once you have a buyer Get as big of ( non-refundable ) down payment as they can come up with. ( most of the time I get 100 of assignemnt fee... never less then half )
4. Give all docs to the closing company with instructions to mail any funds due.
5. Repeat
DG
2. Market it to your buyer at the price you got it for plus your assignment fee, but just let him know what he can get it for and don't bring up the assignment.
3. Once your buyer agrees to pay the amount you specified and is ready to replace your earnest money "non-refundable", then and only then do you assign the contract to him.
4. Make sure the title company closing the deal gets your assignment of contract so they know to pay you and give them your wire instructions unless you want to pick up the check at title after closing.
The end buyer pays the title company the full amount plus your assignment, and then the title company then pays you your fee.
Hope this helps,
D
Thanks for the outline.
Am I correct that assignments are frowned on by banks?
carpediemchristian
There isnt to much that banks dont frown on : ( With a (bank as seller) of you would want to offer with a LLC (extra one for this purpose) so you can sell if need be. Cash buyers work best .... you could double close then if desired.
You would offer on REO's this way as well.
DG
Am I correct that assignments are frowned on by banks?
carpediemchristian
Yeah most banks dont like you to do assignments, However sometimes you can get around it. Most of the time in the contracts that the banks will use in an REO or short sale, they have a clause that says you cannot assign the contract unless you have consent from the seller. So if that is in the contract you will not be able to do it, BUT you can at least request if they will allow you to. They will not always let you but I have had banks that give me consent to do it.
So I would say to just try and the worst thing is they are going to say no. In which case we would just do another method like the double close if we had to.
Hope that helps
Thanks for spelling it out.
2. Market it to your buyer at the price you got it for plus your assignment fee, but just let him know what he can get it for and don't bring up the assignment.
3. Once your buyer agrees to pay the amount you specified and is ready to replace your earnest money "non-refundable", then and only then do you assign the contract to him.
4. Make sure the title company closing the deal gets your assignment of contract so they know to pay you and give them your wire instructions unless you want to pick up the check at title after closing.
The end buyer pays the title company the full amount plus your assignment, and then the title company then pays you your fee.
Hope this helps,
D
Teresa
College Station, TX
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Hello,
My daughter Victoria and I, Sheila are new to REI and am working on getting a REA to work with us. Been calling, leaving emails and no real one to work with yet. Still working on this. Do we need to build a power team first before you do your first deal?
Not sure if this is the right place to ask this question.
Please enlighten us.
Thank you in advance.
Sheila and Victoria
now the non-refundable EMD goes towards the sellers purchase price correct?
My daughter Victoria and I, Sheila are new to REI and am working on getting a REA to work with us. Been calling, leaving emails and no real one to work with yet. Still working on this. Do we need to build a power team first before you do your first deal?
Not sure if this is the right place to ask this question.
Please enlighten us.
Thank you in advance.
Sheila and Victoria
Sheila - I suppose that would depend on what you intend on doing. There are so many different ways to profit from real estate you need to clarify " your deal "
Will you purchase? Will you make repairs? Will you rent or resell? I mainly wholesale... I have no power team.. and I have no one agent. I find great deals... and have built my buyers list along the way... adding buyers with each passing deal and have little trouble flipping to them now. Hope that helps
DG
Louis - Non-refundable money is language you only want to use with a buyer ( buying from you ) If you are a buyer you want to be able to get your money back correct??? but yes..... any deposit money is a credit towards the purchase price.