Real Estate Assignments (Wholesailing)

Is anyone out there? I really need help on this one.

Carlos

I am certainly no expert but I think that I recall hearing that "assignments in CA can be considered illegal??? not shure.......
but the "gain the edge event 2010" dvd went into this ....how to get around it..

Wholesailing is when there is not a lot of wind so you raise all the sails on your boat!
Wholesaling is when you sell a house for 70% or less or actual ARV after repair costs.
There have been enough posts and there is enough information on this site to make up about 3 full length books on assignments and if they are legal.
Remember, you do not represent the buyer or the seller and you are assigning a contract, not selling real estate.

Michael Mangham
MD Home Acquisitions LLc

find an attorney that deals with investors; you may assign contracts in California as long as it's not stated in the contract that you cannot do so...

Good post.
And in other words, get in touch with lawyers that deal on a regular baises with investors because they'll be familiar with certain stratigies mentions in Deans books that most out there wont touch.
You have to understand that the majority of people even other investors you'll meet dont seem to grasp these investing stratigies for whatever reason. So press on until you find the ones that do and will work with you because they believe in what you're doing.
They're out there for sure, just keep looking and make yourself understandable and presentable.

Wholesaling is a great way to make money and do business no matter what stage you are in your REI or what your credit is! Its about doing volume! What if you are doing 4 rehabs and all your money is tied up and this great deal comes along. Wholesale it with nothing more than an earnest money deposit that at worst case comes back to you at closing. A nice cash bonus at closing also!!

Michael Mangham
MD Home Acquisitions LLC

Valuni & CAM....Great posts!

Thanks Valuni & CAM!

I will keep searching for another attorney. Do I even need one? I was also told by another Investor that you can assign the property and pass it off to an Investor without even going to closing. I thought that all contracts needed to be recorded and you had to close on these types of deals? He also told me that if you make a smaller profit for example 7-15 thousand most investors have no problem with that, but if you make more, what will stop them from going straight to the sealer after your contract expires. If that was the case he suggested a double closing, but if you go this route both parties might feel uncomfortable with your profit. What are your views on these questions? Thanks again for all your posts.

Carlos

Does anyone have any comments about this?

Thanks
Carlos

Call some RE lawyers in your area and try to get a free or a discounted 1/2 hour consult to see if they are what you are looking for in an attorney. If you get one good piece of advice, it could save you thousands.

A lot depends on what state you will be investing in. Some states us escrow companies and some lawyers. I suggest you develop a relationship with one or both. I got in so tight with an escrow company only to find out that they don't do any double closings or assignments. So if I had to start over again, I would just start calling down the list and ask to speak to whomever in their company deals with real estate investors and ask them about the services they do for them.

Another suggestion is to get that buyers list created. I've been told more than once that an investor wished they had done that first.

Thanks for the advice I am starting a buyers list, it is not so big yet but it’s growing. I have been in contact with a good deal of lawyers but have not found one yet. I have found a title company that does double closings and am trying to build a relationship with them. It is all so new and until I get my first deal done it is frustrating.
Any suggestions what I should ask the attorney when I call them because they keep asking me what exactly I want from them. I ask them if they have any experience in real Estate Assignments and they say sure what do you want to do with them? I explain what Dean talks about in his book and most don’t understand what it is I am trying to do. I ask them if they can recommend someone they know that maybe has some experience in real estate investing in residential areas and they tell me they don’t do that. So you see where I am getting frustrated? Maybe I am not explaining this correctly. Do you have any advice what I should ask when I speak to them in regards to Assignments? I think I get the concept and I have no problems communicating with people. I just don’t understand how Attorneys in San Diego CA have no experience with what I am trying to do. I won’t give up and thanks again.
Carlos

have you tried attending your local REIA club??? they should be able to give you some good references and i would think San Diego would have at least one club. just a thought.....

Ya I checked in to the REIA Clubs and San Diego has a big on but the next meeting is not till the 13Jan11. I plan on attending but for now I am just cold calling Attorneys. I had a good call back with an attorney this afternoon. She had no experience in what I was asking but was willing to work with me I think I explained what I was trying to do better his time. The only thing is that the retainer is quite high and the price per hour is a little step. "5000.00 for a retainer and 350 an hour" WOW! I think I will keep looking. What do you think? Does anyone know if that sounds too high? Thanks for everyone’s help.

Calos

I found a lawyer through the investor meeting in my area. But this is how I found a INVESOTR FRIENDLY TITLE COMPANY. I got the yellow pages and started calling down the list of title companies and just asked if they did " double closing or simultaneous closing". I asked if they handled assignments. To my luck I came across 1 company on the second call. I set up a meeting to meet him to ask more questions and tell him what I was trying to do. He said can do it all and that is one the only company that does these transactions. He is an investor himself. Which was great. The lawyer I met at the investor group can do it all too, and is an investor himself. So just cold call and ask direct questions so you can the info you need and if not you can get off the phone and call the next company. You will find a company just keep calling. The guy at the company I use is the owner, so I knew he was telling me the truth.

In a double close, neither party knows your profit. You get the property under contract from the seller. THen you advertise and find a buyer advertise the price you want to sell for don't tell him what you are paying.

Then ask the title company to do a double close, they schedule the closing with the BUYER first. He pays his money, they put it in escrow.

An hour later they schedule the closing with the SELLER. they use the funds from the escrow to pay the seller. The remainder in escrow is written in a check to you. So neither party meets each other, the seller doesn't know you already sold the house, and the buyer doesn't know your profit, he only knows how much he is paying you, you have no out of pocket cash, AND you make a hefty paycheck.

So rather than calling attorneys, start calling title companies and ask if they do double closings. Don't stop till you find one that says yes. And don't argue with them, if they say no, say thank you and hang up. If they say its not legal, say thank you and hang up. The title company that does do double or simultaneous closings, KNOW they are legal and they will do the proper scheduling to facilitate it.

Now if you can't get the buyer to close 1st, then you may need to find a transactional lender to lend you the money to buy the house first and then when you sell the house you pay back the transactional lender with a small fee (they usually only allow 24 hours) and then again, the remainder is yours to pocket.

Chris

Chris

In Other Words what everyone is trying to tell you is basically go & Look for A Real Estate Attorney Or Lawyer.

Also You can go & do like I'm doing I'm not using A Attorney at all Cause right now I can't Effort it But There are Real Estate Title Companies & Real Estate Escrow Companies that Usually Process all the paperwork for you some have their own Lawyers & Attorney's .

If you Are Doing the "Assignment" Were you're selling you're part of The Contract Over to A End Buyer You don't Need A Attorney Or Lawyer unless you Just Want one you can easily go to A Real Estate Title Company Or Escrow Company & ask about Their Services & stuff .

Cause All I have Is

1.A Good Real Estate Agent
2. A Escrow Company

3. & I Use A "Finders Fee Contract" I usually use A Finders Fee Agreement Signed By Me & My End Buyer Before any Deal(s) are Done To Protect our Agreement & to have Our Agreement in Writing & To Protect me if I need to take one to Court .

But Hiring Lawyers & Attorney's Cost a lot & Who has $1400.00 + to Hire one not many of Us .

Thanks for your info on finding investor friendly title companies. I tried that once in Texas, and I must've called every title company in the book. The only one who would or could do it was "Stewart Title" in Houston. I don't know if all Stewart Titles around the US do it or not. Does anyone know if "First American Title Insurance Company" (I know -> It's a long name...) in Arizona does double closings, simultaneous closings or assignment contracts? There's another title company about 10 miles away and I don't know if they handle that kind of thing or not either, since they seem like they are one of those "mom & pop" companies with no website.

As far as using Real Estate Lawyers goes, I know divorce lawyers around here have at least a $1500 retainer fee, and up to $700 or more by the hour. Your best bet is to either ask a few of your buyers if they know anyone, or ask your real estate agent. They may know someone you don't know, since they are apart of your "A" team. I've heard you can sometimes negotiate the closing fees, so they aren't as much. I've heard of "The Mystero" negotiating $500 closing fees at a title company, if you keep using them for your continued business. I don't know if this actually works or if it doesn't.

But, Thank you again. (:

Do you still do an assignment of contract when doining a double closing?

Is a title company the only one you need to do this , what about an

escrow company, do they come into play ?

No, two different things. If you learn what each process entails you will answer your own question!

A title company handles everything for us!

Michael Mangham
MD Home Acquisitions LLC

Thank you all for the great posts. I got quite a bit of help and have a much clearer path I am going to take.

Off subject, has anyone had any positive results from the 1-800 answering services? I have red most of the responses from the thread on this site, but has anyone used this technique and had success? I got some bandit signs but am debating whether or not to use the 1800 answering service. Does anyone have feed back?

Carlos