Assignment Contracts-In Depth

Thank you, because I personally need help with assignments, as I have buyers that have investors, but need more in-depth help with what to do step by step to get some deals done, and who would, or would not need to be involved. Please, assistance needed by the experts here. HELP!!!

Yes, we need some more detail about assignments. If it's not too much to ask.

If these answers are not found in any of the 3 books, then what is going on here? It's one thing to have 1) no money, 2) no credit, 3) no job, 4) no experience....but not knowing and not being taught what you're suppose to do is a very dangerous predicament to be in. From the success stories, one would deduce that anyone could do this stuff with half their brain tied behind their back. But it is evident that it's not as easy as one might think.

Learning the procedural steps is the simple part. Finding buyers is also a breeze since everyone will you talk to will show interest in buying, but will they put their money where their mouth is when it becomes real? The real test is when you have to FIND and CONVINCE sellers to sell below FMV. That is the crux of the equation that will matter the most. Who cares about this document or that, those are all doable. Heck, you can pay an attorney a $1,000 and he will take care of all that is necessary. What is a $1,000 compared to the money you plan to make? Wallowing in the mire will not help. Learn to look at the larger picture and delegate the minutia.

I suggest you first work on the seller aspect before anything else. You can perfect all the other elements, but without a seller and 30%-50% off FMV, nothing else will ever matter!

Thank you for your input. I think (speaking for myself since I am new as well,) the reason that the same question keeps coming up is because since we are new we are just looking for that reassurance that it is ok to step out of our normal world and into the world of the unknown. At least to us. The only thing that I am repeating over and over and over again is that if it works for one, then it can be done. I am working very hard on every chapter to try and be as thorough as possible to make my mistakes minimal. I am going to find these deals, and I will make this happen so all parties involved can have a sense of relief in this new year. My only suggestion (again because I am new) is to read as many forums as possible on this site. I have found a ton of useful information such as websites, other investors, REI clubs, etc. on this site. I am is Bothell, WA just on the northern eastside of Seattle. I can only say that I am excited and scared at the same time. I think that is what keeps me interested in all of this.

May our fears turn into confidence, may our turmoil be turned to faith, and may our cries for help be turned into the strength that is within us all.

Hi guys. Assigning is so simple when you get your buyers list and learn how to find motivated sellers. It's nice that Dean goes over all the aspects in his books and helps with every component. The best way to start feeling comfortable with this stuff is to just get out there and experience it. you will NEVER be 100% ready by reading and studying. The ONLY way to gain confidence is to DO.

As far as the actual assignment, yes, hectortorres, you have the right contracts. I would be happy to share an actual sample of one of my assignments with anyone who wants to PM. All I did on the first one is to take Dean's contract, have my attorney look over it and tweak it for our state (which really didn't change anything), and now I just fill in the blanks for any new ones. And I would recommend using your state-approved offer to purchase (purchase agreement).

I have never had a private seller reject the and/or assignees on my offers to purchase. They don't care who buys their house, as long as they get to close they're happy. The banks with REOs and short sales are a different story, but with those you just do a double-closing (one purchase and one sale within a day or so). I use private money for the transactional funding.

Depending on your state, you will use an RE attorney and/or a title company for title insurance and closing. SOO easy once you do it. Believe me.

I hope that helped some, and honestly you just have to get out there and start trying stuff. EXPECT to make mistakes. We all have. If you structure your offers right, there is not much to lose, and every experience brings you that much closer to easier successes. And let me tell you, It's worth it!!!

God bless,

Rina

May I start by saying that you are one of my motivators and inspirations on this site. Everytime I see your icon on here I just have to read what you say. You are very knowledgeable in this craft and I can only hope to be just as good as you one day.
Thanks for your input on here, it IS very helpful and very much appreciated.

You are very welcome, and thank you for the kind words.
I'm going to copy my answer to your PM here as well, for anyone who cares to read it. Don't know if it sheds any more light, but added info sometimes helps.

Rina

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Good morning.
Happy to help.

Finding sellers is a whole book in itself. I have found them anywhere from making low offers on listed properties through my agent to tracking down owners of vacant properties to word of mouth finding another landlord that just wanted to get rid of his properties. There is no set plan. You can use Matt's 25 to 1 strategy, or mail out preforeclosure letters, or throw an ad on Craigslist. WAYYY too much for me to cover in one response. There has been a TON on here lately (always) about finding sellers. You'll be surprised if you use the search box what you'll find. And definitely re-read the books.

I sign every purchase agreement and/or assignees so that I always have that option once an offer is accepted. My most recent was a cash-flow property that I passed off to another investor. Talking to the owner was no big deal. (I actually bought 2 of his and now we are doing some other stuff together as well.) There is no shortage out there of properties to buy. I signed the PA my name and/or assignees, signed the "assignment contract" with my end buyer, got a check from my buyer and handed her the PA to go to closing. Informed the title company of who the buyer would be and they took it from there.

Hope that helps.

Have an action-packed week!

Rina

P.S. btw, you can assign a lease option, too. You can assign any contract that you include the assignment right in. Actually, I have heard that you can assign ANY contract that doesn't specifically say you CAN'T. Now THAT's interesting..

..."P.S. btw, you can assign a lease option, too. You can assign any contract that you include the assignment right in. Actually, I have heard that you can assign ANY contract that doesn't specifically say you CAN'T. Now THAT's interesting.. "

Funny you should mention that. I was actually wondering about that last night before I fell asleep. Very good to know, Thanks Rina.

What we've found is that you can assign any contract unless it says you cannot. The biggest key to the process is having a title company/attorney (depending on the state) that is good with the assignment.

We actually just closed on an assignment this past Wednsday that didn't say and/or assigns, but the title company was use to doing them so there was no problem and the initial seller never really needed to know.

Just our experience. As long as the party handling the title is good with it, everything else can fall into place.

Thank you all for the great advice. I am very anxious to get the ball rolling. I am just going one step at a time. These forums have been a great help and inspiration for me. I will be picking all of your brains here soon I am sure. Thanks again.

I am going to comment on this subject because its one I know a great deal about and have practiced extensively. Here is a post I put up a while ago in it. I think be reading the ENTIRE thred - your questions may get answered and become a lot clearer..

Happy reading

http://www.deangraziosi.com/node/8713

My fear here is how to fill out the forms correctly, due to it's leagal issue which can cause trouble later on. Can someone show a filled sample Assignment of Contractse and purchase agreement form.

Thanks,
Kathy

ANY contract is assignable unless it specifically says IT IS NOT

I had to laugh looking back over that old thread! So funny to read how frustrated I was learning how to do assignments. I'll tell ya what, after you do some, and get a team together that runs like clockwork, you forget about how much you struggled in the beginning. It was fun to read that again. Thanks for all the awesome info. Hope it helps some of the newbies. (don't forget to use the search box. you'll find tons of great info in here.)

Rina

I must say Anita, had I known about your thread, I would have never created this one. Your thread explains everything quite clearly. I love how everyone is so supportive here. Kinda makes me feel all warm n fuzzy inside. lol By the way, I think I read the the pages on your thread-all buh-zillion of them. My head hurts now from reading so much. Must be all that wisdom!

P.S.- I've seen you in Dean's videos and commercials. You are one of the reasons I ordered the books. Your an inspiration to us all. The fact that you've survived cancer three times is even more amazing! Put simply-you rock!

Newbies,
If your looking for more info on assignments, you will find a treasure chest full of info and advise on the subject by clicking the following link provided by Anita:

http://www.deangraziosi.com/node/8713

where when and how do the lawyer and tittle company come into play?

Thanks for all of your responses!

You just dug up a gold mine with this post; thanks hectortorres. And thanks to all of those contributing the wealth of information! It's good to have all of this knowledge and wisdom clearly and concisely in one place.

When you signed the assignment to your end buyer, you got paid right then or did you wait until closing? and could you explain...I found a house for 90k , do I assign the contract for 95k to my end buyer, for a 5k payment for me...?Thank you

You can get paid right then at the assignment or at closing. Often times the end buyer will feel more comfortable having a title company handle the closing and payment of the assignment at the purchase of the property.

Yes, your deal looks good $90k purchase with an additional assignment for $5k. Total purchase price of $95k and $5k in your pocket. Make it happen!!!

Best of Luck!