Assignment of Contract

You use the Standard Purchase & Sales Agreement for your Seller
You use the Assignment Contract for your Buyer

1. You put the property under contract using Purchase and Sales agreement. This contract is of course between you and the seller. You now control the property.
2. You assign this contract to your buyer (The Purchase and Sales agreement between you and the seller) using an Assignment Contract. The buyer pays you the "Assignment Fee" not a finders fee.

This Assignment Fee can show on the buyers side of the HUD and you collect your assignment fee at closing (this is the method I prefer) OR the buyer can pay you Assignment Fee at the time they sign the assignment contract

Good Luck!
Michael

So the assignment contract is just a 1 pager which is on this site i believe under forms if not I can email one to you & it is what you give yiour buyer to sign which just says you are assigning all rights & priviledges & terms & conditions to your buyer etc.

Like Michael says you can get paid upfront or at closing, I get paid at closing right now I dont have the courage yet to ask my buyers to pay me upfront although I will get a non refundable deposit from them which is twice my deposit if i put down a deposit for the prop.

But yes when you assign the prop you send the assignment contract to your buyer along with the purchase contract so they can review the contract you are assigning & when they sign you either get paid upfront or out of closing, out of the HUD settlement statement you will get at closing listing all the fees being paid to whoever, you, Title, the seller getting paid, realtor etc(if it is a listed prop) hope that made sense.

Order Deans first book called Be A Real Estate Millionaire and he covers everything you need to know about the basics or the contracts and strategies.

Do not forget that you need to have an assignment clause in the purchase contract with the seller. You can put this where you put your name as the buyer. It would read "John Doe and/or assigns." Another way around this is to put a notation in the addendum to the effect that the buyer reserves the right to assign this contract.

Note that you cannot use an assignment of contract for REO properties.

Hi Michael,

Can you tell how to use "The Offer Formula"? I don't understand how to calculate an offer price to my seller.