OfflineHello guys! I understand the IEE but the assignment is not clear to me. I have lawyer, REA, buyers, and sellers, houses to put offers on, etc.. But I'm not sure of the steps to assign. My lawyer said he will get the assignment contract together for me when I have the assignee. I don't want to sound like I don't know what I'm doing . Do I get the seller to sign at say 100,000, then when I assign add my profit to a second contract with the end buyer? Or do I have my money already priced in with the original contract w/seller and use the investor disclosure notice? Can Someone please explain in detail how this is done?
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Just take a deep breath, and turn to page 164 in Dean's book,"Profit From Real Estate Right Now" and do a recap on the "Assignment". It explains everything step-by-step and what forms to use and when. Then if you have more ?'s come back.
Good Luck, you are almost there!!!!!!
Hi Jason. Thank you for replying. I must be missing something, I have gone over it many times, it is very specific with the IEE, but It is not as specific with the assignments. It basically says in the nutshell to find a great deal, lock it up and assign for a profit. And that it is similiar to the iee. Can you please go into detail on exactly how it is done step by step.
I think you have it almost already, I would use the investor notic disclosure with the first and original contract with the seller and when contracting the buyer you will have included your profit in the selling price. I don't have Deans new book yet , but this is a method I am familiar with. Hope it helps and good luck. Go!!
Hi. Thank You for your reply. I have since figured that out however I am using a New Jersey realtor who insists on using her contract. Although I am using an adendum with a 30 day exit clause, herself and my lawyer are saying that after my offer is excepted it is considered a binding contract and it must go into attorney review emediately. I am not clear on this because I have not assigned it yet or purchased it yet.
It sounds to me liek your have everything you need in order. Just go over your contract carefully and be sure you have your disclosure and clauses included. If something still doesn't seem right , go over it again. If you can think of anything that may disrupt what it is that you are doing, or anything that would effect you in a negative way then you will know what you will need to A)include other exit clause(s) B)make any adjustments on "her" contract. Also keep in mind that this contract may be hers because she will provide it but in reality it is yours because you will control the terms of that contract. Another thing to consider is if your lawyer feels the final contract is in your best interest. Good luck!
Yes you add the other exit clauses,contingentcies,
but most posts I've read in here
always say to put "and/or assign" next to their name where
they are signing on the purchase agreement.
If in doubt do it anyway.
Kelly
Hey guys...Had another question. Let's say the original contract is the amount agreed upon by myself and the seller. Say it is $100,000. Then when I assign it, I'd like to have a seperate agreement with the assignee to get say $10.000 from him, and have a seperate contract between us, (the assignee and myself) for the additional $10,000. Is this a way to do it or is there a better way ?...I really wasn't clear about this in Dean's book..
CherieF,
One thing is for certain,Who is going to close your deal when you get it? You have to make sure who ever closes your deal understands your strategy!So with that said,Who closes your deal will be the best one to take advice from.You are bringing business their way and i am sure will help you all they can.
This is a good point on how important it is to control the closing (When you can)
Invest in yourself!
1) Your contract with the seller will be the Offer to Purchase/Purchase Agreement, that will be the one for $100,000, the price of the property.
Here is an example from the DGsite Forms & Docs:
http://www.deangraziosi.com/documents/Agreement-to-Purchase.pdf
and an example of a state-approved (this FSBO example is from WI):
http://www.fsbomadison.com/wisconsin_real_estate_forms/otp.pdf
2) Your contract with your end buyer will be the Assignment Contract, which is where the $10,000 would come in.
Here is an example from the DGsite Forms & Docs (which is the one I use with a little tweaking from my attorney):
http://www.deangraziosi.com/documents/Assignment-of-Contract.pdf
You sell contract #1 (the PA) to your end buyer. Contract #2 guarantees you get paid your assignment fee. I would get this up-front, but some include it in their settlement statement.
Hope that helps.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Thanks Rina.. And everyone else who is helping others achieve thier goals! I was hoping I could do it this way. I am using my Agents contract with adendums so this makes it easier on her and clarifies things for me. My lawyer can just tweek the assignment contract when I do the assignment. I did get some information since we last spoke. The reason that my Attorney reviews the contract for every assignment is so that if the end buyers Attorney wants to make changes to the contract the Attorneys can then work that out together. Have a great evening...