First thing you want to have is your Buyer's list in place,then find your deal with a homeowner,get all the terms and conditions down on the contract.When you sign your name on the Buyers line,make sure you put and/or assigns after your name. This will allow you to flip the property to your buyer.contact your buyers and which ever one wants to buy the property, you do an assignment of contract with your buyer.take the purchase contract from the seller and the assignment contract from the buyer,take it to the escrow company or attorney,get a closing date and bring in the seller and your buyer,they close the deal,you get your assignment fee.
whurndon, if i used a realtor to find a property for me to assign, how would I "lock it up" without being prequalified for a loan? Is the assignment contract all I would need to make an offer on the property? I'm somewhat confused....i need to be able to explain this stradegy to a realtor. He told me a contract can be assigned, but first you must be qualified as if you were purchasing. could you plz help me to understand! Thank you!
If you are just planning to assign the property then most likely all you will need is a proof of funds letter. You can get a free one for any amount at www.coastal-funding.com
Is the property an REO,the bank may not let you flip the property,but get a proof of funding letter from a private money lender,the bank will accept this without you having to qualify for a loan.If you get the REO,if it is an REO,find your buyer when you get your buyer,ask them if you can put them on the contract with the bank,if yes,call the bank and tell them you are adding a partner to the contract,the bank shouldn't have a problem with this,if they don't put your buyer on the contract,do this before closing.When you go to the closing you and your buyer will be there to close the deal together with the bank,after you close the deal at the title company,tell the title company that you want to do a Quitclaim form,this will transfer all your ownership to the property to your buyer,and he will in turn pay you your fee that you had agreed on. Hope this helps!
Newbie...a little help from someone who has done a few?
I have contacted a few of the ads "I buy homes" I talked to them and they told me the general areas that they are interested in...my delima is...my realtor is sending me many homes well below FMV, however I am unsure how to match a property with that investor. Do I go out and put many offers on many properties in the hope that he wants to let me assign the contract to him for a fee? He wants me to give him the addresses up front...Or can I ask him to sign a non-circumvent agreement prior to me placing a contract on a pecific property and once he says he wants property "A".... I then lock it up in a contract?
When do I get the profit I made from the deal?
I am so confident this will be a great thing in my life...I just need a little specific direction to get to my 1st deal with Dean's program!
If your realtor is sending you properties BMV do the comps on each property,find todays Market value,factor in what you want to profit from each deal,then send your buyers a picture of the houses with your price.Let them choose,or contact each buyer a get a profile of the types of property they are looking for and consistrate on those types of properties.Hope this helps.
Does providing proof of funding make you obligated to buy?
If you are doing an assingment on an REO, it was stated above that it should work as long as you have "a proof of funding letter from a private money lender."
Once you provide proof of the funds backing you, are those funds obligated to be used for the purchase of that property or is it necessary just so people dont waste the realtor and banks time?
hey all quick question. when you have a deal locked up and your marketing it to your buyers, do you have a set price to sell it at or do you have to have the buyer make an offer?
I am sure whurndon can confirm, but I believe the offer price you give to your buyers should be the price you locked up the propery with plus the profit you want to make. ie. if you lock it up at $100,000 and you want to make $10,000 then your offer to the buyer would be $110,000. Hope this helps!
Good luck with real estate investing. The more information you gather today will assist you with tomorrow's deals. If it does not go as planned learn from it and the next time it will be easier as you try to work out a deal. It sounds like you are going to take action and moving in the right direction. Good luck with real estate investing. Believe and Achieve! - Joe
Hello, I am a newbie and I have had Dean's books for about 2.5 months. I have contacted a realtor and now going to look at properties. My question is that I live in Washington, DC and there is a potential for great investment or assignment opportunity. The condo unit where I live(rent) is concidered the deprived on the rise part of DC(Ghetto). There are three condo buildings and the owners are behind on all the utilities and condo fees. The units are not self contained. The building that I live in appears to have some structural damage. There are at least three foreclosures in each building and a few are bank owned. There are two buildings that have 12 units and one has 15 units. I am writing to you because I see a great opportunity. The property is located on the Potomac River with the Capitol Building, The Washington Monument, The Nationals Stadium, The new Department of Transportation, Alexandria, VA skyline and not to mention less that 10 minutes from The National Harbor where Disney will be building a new resort starting 2011. There is a scheduled owners meeting tonight to discuss their current situation because the current management group removed themselves from the property. The owners are seeking a new management company but I believe that the deal is on its way to foreclosure. Please help!! shop this around for answer if you like.
Thank you so much
ruckert
We have a deal locked into contract for which we are in the process of assigning to the end buyer. Our attorney wants to make sure we understand that when assigning a contract if the end buyer backs out, we are still on the hook to close. Our understanding was the opposite -- that when you assign a contract, the new buyer takes over the responsibilities and obligations of that contract and would lose their deposit if they failed to close. Which is correct?
You are never on the "Hook" to close. Your contracts should be written in a way that the sellers only recourse if you do not close is the loss of the earnest money deposit.
Your contract is with the seller. You ARE ultimately responsible for the final outcome. Take a look at your contract with the sellers and check out who the buyer is. It is you! So your attorney is correct there.
I always take a larger Earnest money deposit from my buyer on my assignment contract than what I put down on the original contract. I also make it non refundable. Usually $2500 and up. If a buyer puts up $2500 non refundable earnest they usually don't back out! If they do, I am covered as far as the loss of MY earnest money.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
__________________
Knowledge is power, but execution trumps knowledge. Tony Robbins
Offline
First thing you want to have is your Buyer's list in place,then find your deal with a homeowner,get all the terms and conditions down on the contract.When you sign your name on the Buyers line,make sure you put and/or assigns after your name. This will allow you to flip the property to your buyer.contact your buyers and which ever one wants to buy the property, you do an assignment of contract with your buyer.take the purchase contract from the seller and the assignment contract from the buyer,take it to the escrow company or attorney,get a closing date and bring in the seller and your buyer,they close the deal,you get your assignment fee.
Hope this helps!
Good Luck & Good Investing
whurndon
whurndon, if i used a realtor to find a property for me to assign, how would I "lock it up" without being prequalified for a loan? Is the assignment contract all I would need to make an offer on the property? I'm somewhat confused....i need to be able to explain this stradegy to a realtor. He told me a contract can be assigned, but first you must be qualified as if you were purchasing. could you plz help me to understand! Thank you!
Jeff
If you are just planning to assign the property then most likely all you will need is a proof of funds letter. You can get a free one for any amount at www.coastal-funding.com
Success and Nothing Less!
Is the property an REO,the bank may not let you flip the property,but get a proof of funding letter from a private money lender,the bank will accept this without you having to qualify for a loan.If you get the REO,if it is an REO,find your buyer when you get your buyer,ask them if you can put them on the contract with the bank,if yes,call the bank and tell them you are adding a partner to the contract,the bank shouldn't have a problem with this,if they don't put your buyer on the contract,do this before closing.When you go to the closing you and your buyer will be there to close the deal together with the bank,after you close the deal at the title company,tell the title company that you want to do a Quitclaim form,this will transfer all your ownership to the property to your buyer,and he will in turn pay you your fee that you had agreed on. Hope this helps!
Good Luck & Good Investing
whurndon
what if the buyer is an Iee... I mean what if you don't what your next buyer is....
you never know until you find out...
I have contacted a few of the ads "I buy homes" I talked to them and they told me the general areas that they are interested in...my delima is...my realtor is sending me many homes well below FMV, however I am unsure how to match a property with that investor. Do I go out and put many offers on many properties in the hope that he wants to let me assign the contract to him for a fee? He wants me to give him the addresses up front...Or can I ask him to sign a non-circumvent agreement prior to me placing a contract on a pecific property and once he says he wants property "A".... I then lock it up in a contract?
When do I get the profit I made from the deal?
I am so confident this will be a great thing in my life...I just need a little specific direction to get to my 1st deal with Dean's program!
Thank You,
Christina
If your realtor is sending you properties BMV do the comps on each property,find todays Market value,factor in what you want to profit from each deal,then send your buyers a picture of the houses with your price.Let them choose,or contact each buyer a get a profile of the types of property they are looking for and consistrate on those types of properties.Hope this helps.
whurndon
H&H PROPERTY SOLUTIONS LLC
If you are doing an assingment on an REO, it was stated above that it should work as long as you have "a proof of funding letter from a private money lender."
Once you provide proof of the funds backing you, are those funds obligated to be used for the purchase of that property or is it necessary just so people dont waste the realtor and banks time?
hey all quick question. when you have a deal locked up and your marketing it to your buyers, do you have a set price to sell it at or do you have to have the buyer make an offer?
dantheman24,
I am sure whurndon can confirm, but I believe the offer price you give to your buyers should be the price you locked up the propery with plus the profit you want to make. ie. if you lock it up at $100,000 and you want to make $10,000 then your offer to the buyer would be $110,000. Hope this helps!
Thank you everyone for the advice and help. I really appreciate all your input and positive feedback.
Dan Brozyna
Stay Positive!
Dan Brozyna
Weichert, Realtors
(973) 779-1900x236
(201) 679-2857
Good luck with real estate investing. The more information you gather today will assist you with tomorrow's deals. If it does not go as planned learn from it and the next time it will be easier as you try to work out a deal. It sounds like you are going to take action and moving in the right direction. Good luck with real estate investing. Believe and Achieve!
- Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA
TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA
Thanks so much I am working on a 8 plex w/ house in the mid of fixing up and am very anxious to make this deal. And many more THANKS SO MUCH
S*
Hello, I am a newbie and I have had Dean's books for about 2.5 months. I have contacted a realtor and now going to look at properties. My question is that I live in Washington, DC and there is a potential for great investment or assignment opportunity. The condo unit where I live(rent) is concidered the deprived on the rise part of DC(Ghetto). There are three condo buildings and the owners are behind on all the utilities and condo fees. The units are not self contained. The building that I live in appears to have some structural damage. There are at least three foreclosures in each building and a few are bank owned. There are two buildings that have 12 units and one has 15 units. I am writing to you because I see a great opportunity. The property is located on the Potomac River with the Capitol Building, The Washington Monument, The Nationals Stadium, The new Department of Transportation, Alexandria, VA skyline and not to mention less that 10 minutes from The National Harbor where Disney will be building a new resort starting 2011. There is a scheduled owners meeting tonight to discuss their current situation because the current management group removed themselves from the property. The owners are seeking a new management company but I believe that the deal is on its way to foreclosure. Please help!! shop this around for answer if you like.
Thank you so much
ruckert
We have a deal locked into contract for which we are in the process of assigning to the end buyer. Our attorney wants to make sure we understand that when assigning a contract if the end buyer backs out, we are still on the hook to close. Our understanding was the opposite -- that when you assign a contract, the new buyer takes over the responsibilities and obligations of that contract and would lose their deposit if they failed to close. Which is correct?
You are never on the "Hook" to close. Your contracts should be written in a way that the sellers only recourse if you do not close is the loss of the earnest money deposit.
Your contract is with the seller. You ARE ultimately responsible for the final outcome. Take a look at your contract with the sellers and check out who the buyer is. It is you! So your attorney is correct there.
I always take a larger Earnest money deposit from my buyer on my assignment contract than what I put down on the original contract. I also make it non refundable. Usually $2500 and up. If a buyer puts up $2500 non refundable earnest they usually don't back out! If they do, I am covered as far as the loss of MY earnest money.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site