Do Assignment Contracts work anymore?

You need to find MOTIVATED sellers.....THEY EXSIST IN ALL MARKET CONDITIONS!

People will never stop:
Divorcing
relocating
having bills to pay and no way to pay them
dying
getting married
expanding their families
etc....

If you do the work and do the business and go out and do it...you will find them...

...Buying the new books from Dean, he will take you through all of the new strategies and answer all of the questions that will arise without having to ask everyone... Yes they still work!

Absolutely they are still working. But you may have to be a little creative if chasing foreclosures/REO's. Alot has changed and some banks are not allowing assignments WHICH means you'll have to double close. BUT I am still getting accepted offers on REO's (even BOA) with the and/or assigns. But know alot of Dg'ers in other ares are absolutely not allowed to even submit with and/or assigns. A double close will still allow a no money down strategy to work for you. But keep in mind you may have to utilize transitional funding. Which it in a nutshell is just another step in the close process. You must find a good RE attorney that is well versed in assignments of contract and double closes. Cash to cash work, cash to conventional will work (confirmation of funds in escrow prior to 1st close). Also, on SS typically once accepted you will have to close almost immediately for the bank to approve. Your coach at the Academy will be able to walk you through the step by step process (which would be my 1st recommendation), you can do a DG search on the topic to assist, or I can elaborate if you wish.

I find targeting FSBO for Assignments to work best. If the deal merits a larger take I still may do a double close on it with my buyer. Case by case basis. Always allowing more than they ask for in spread, I've not had an issue with straight assignments.

Lean on Academy for direction, do your research and stack your team with professionals that are experienced, knowledgeable and reputable in the resources/area in which you are needing their expertise!

Jen...DG "rookie" here. Your post re:assignments is probably right on, however, I'm totally unfamilar with the lingo, e.g. double close, cash to
cash, cash to conventional, and SS. Are these topics covered in Dean's books?
Thanks.
Marty

Marty....sorry

SS = short sale
double close - A to B transaction and B to C transaction
meaning A=(seller) + B=(buyer - you) then B=(as seller - you) + C=(end/final buyer)

*contact your RE Attorney for your state's guidelines/requirements.*

Ex of double close or simultaneous close.

You set up a close to purchase the property from the seller. You are closing as a cash buyer (using transitional funding aka temporary funds) to close. Ex. you purchase the property for $100k using transitional funds. (close #1) (hang in there will tie it all up in the end)
THEN get up go into another room and close the property for the second time with the end buyer. (it can be a cash deal also or it can be a retail buyer that is using a conventional method of financing). ex sells price $150k (close #2)

Transitional funds are deposited into an escrow account for you to purchase the property at $100k. The End buyer's funds are also held in escrow at $150k. The Attorney will pull funds to pay off your seller on first close ($100k), then pull funds to payoff your transitional lender when you sell with purchase price and their fee comes to a total of ex:$105,000.00 So if you are following with the money you bought at $100k you sold it at a price of $150k so if you structured deal that says seller pays close (1st deal) and buyer pays close (2nd deal) it cost you $5k to use the transitional funds then you get a check for $45k. attorney will do one filing at the end of day.

$150,000 (sold price)
<100,000> (purchase price)
< 5,000> (fee to use transitional funds)
_____________
$ 45,000 (profit)

your seller and your buyer are paying the closing cost to your attorney

hope that helps and didn't confuse further. It's not that complicated just means you are closing twice.

But,,,,,,,,,,Will the end Buyers Funds that are written to you be covering the check you wrote to the seller all in the same day? In other words, is this a No Money Deal for us, or do we need to show proof of funds and qualify for this second closing?
David

You will probably have to show POF (that you can get from transitional lender) to submit WITH your offer as a cash buyer. You will have to have a buyer under contract to qualify for transitional funding. (but can use someone like Coastal-Funding for POF letter) Since you attorney already has confirmation (money ALREADY deposited into escrow to cover 2nd closing) you are covered. But yes this is still a no money down strategy for us. Because our cost to use transitional funds ($5k I mentioned) are deducted from the profit from the second closing. Your attorney is responsible for disbursement of funds to each party.
At least this is how it has worked/processed for me. (#'s of my deal were smaller but used those figures to try and keep the math clean) I did not cut a check nor did I have my credit pulled.

Just make sure your attorney has done these transactions. Ask that they explain to you the process of the double close. Ask they explain to you how they did their last double close. To make sure everyone is on the same page and a clear understanding.

Hey Jen, check out the following:

How to Attract Investors to Assign to Your Deals
By Madison 10.03.08

Assignment Of Contracts Made Easy
By cbrpower 10.19.09

Read all the posts in the threads,

AND simply do a search on "Assignment" on Dean's website

This should keep you busy for a while, give you the answer to your
question and give you both the knowledge and confidence to TAKE ACTION!

Wishing YOU Unlimited $UCCE$$!!!

Oh yea, did I mention, be sure to really PAY ATTENTION any time you see anything by either Michael = michaelmangham or Matt = cbrpower >>>>>>>>>>>

LISTEN, LEARN, APPLY (TAKE ACTION!)

I wanted to come and say thank you to everyone who answered my question. It has been extremely helpful!

Jen

Thanks Jen for explaining. I'm learning a little bit more each day, and it's slowly seeping in .
David

that people who come on here and ask that question after claiming they read the book, really read the book.

I believe they bought and skimmed the book for areas they wanted to read, but I fail to believe that someone had the books over a year and can still ask these type of questions honestly read and retained the info.

Or they are just lazy and want all the answers witout working towards them.

Answer, define and explain all the terminology and techniques, and if you think they don't then I herd of this place called Google that is supposed to be the best access to find all the knowledge that you need on any topic. I have used it and it works great.

If you have the opportunity to take advantage of any local trainings or any offers like on Dean's product page with cds and DVDs you may want to invest the money in them and in yourself to get up to speed if that is what you are lacking. I have invested thousands of dollars throughout the years on courses, events, seminars and REIA memberships and such. Taking action sometimes means taking out your wallet. We all have done it and wouldn't be where we are without it.

College costs $50K for a bachelors degree and most end up using it to work at Starbucks.....$40-$100 here and there or more will provide you with education that can make you way more than a career at Starbucks.

Hope that helps!

I'm in New York City and the Real Estate Market out here is the belly of the beast. You will find more shortsale than you will a wholesale deal. So far I've 2 short sale in the works and I have a contract on a property for about 90K that property is in Brooklyn. I've two leads that need to get the shortsale process started. People who are facing foreclosure are more motivated to do a shortsale than a person who has equity and want to sell. You do find them but you have to do alot of marketing. Thats why now I'm thinking about expanding my market and start getting into virtual wholesaling.
That way I've a better chance to find a wholesale deal. That deal I had under contract for 90K I marketed it for 97K I've been receiving offers on that for at low as forty. Alot of people are saying that it might be a knock dwon job.
The owner is not going dwon less that 90K. There is one comparable comp that is a block and a half away and that sold for 75K. Its only one that went for 75K so that does not make a precedent. Figure just put it on contract and if the seller gets more motivated than we can always amend the contract. With that I remain.

http://www.massactionrealty.com

I am a little offended by the fact that you would call someone lazy. I completely read through both of Dean's books Be a Real Estate Millionaire and Profit from Real Estate Right Now and have not had the chance to purchase the latest one. I am re-reading both of them to refresh my memory of some of the things that I have forgotten. I asked that question because I decided to take a break for a year from the real estate business and the market has changed so much since that time I wanted to make sure that using an assignment contract was a method that still worked.

I find that this site has a lot useful information on it and a lot of knowledgable individuals that are here to help each other. That is why we are all here, to help and guide each other, not put each other down. I don't want to have any negativity about trying to make this work in my life, so please try not to put someone else down before you know all of the facts.

Yes they work quite well in Wisconsin.
That is all I do, or basically bird dogging.
I work with two agents. REMAX does lots of foreclosures, and I have done assignment contracts every time with them. My agent didn't even know how to do them, and I had to explain that part. He does them for me every time.
My Shorewest agent has done lots of them with investors, and again, with her homes, she already knows that is what we will do.
Really is like bird dogging. With that, I have a contract with the other investor and I get my pay if he buys it. With my assignments, I call some of these buyers even after I put the house under assignment with the agent. I have an exit clause based on assigning or financing, or inspection. Easy out if it doesn't work. But in the meantime I advertise the house while I have it under contract with the agent, and I do get lots of calls on them.
Other point, I do put down $500-$1000 earnest money if it is with an agent.
But double close is easily done.
And I do agree, these are things all in the books, and I know it is still re assuring to check with others when you are going to try your first ones. But this is basic stuff to know before talking as an investor to buyers and sellers and wherever you go for funding.
I am totally broke, and having major problems and with my health, but it is this simple to do. So if I can do it, anyone can!!
Just read it and even discuss with a friend or family, talking about and they may bring up questions and help you figure it out.
There is good info on these posts, but you have to know something to start with.
Then ask for some support.
You will get the help then.
Sandi

I hope that wasn't directed at me and if it was heres what I have to say....

Emotions and Business do not mix. If you are asking for advice and someone takes the time out of their busy day to respond and supply you with information to help you get what you are looking for then you should be grateful and not put words in to people's mouths. If the statements that are made to help you look as if they are critical toward you and they strike a nerve it is not the helpers fault. You have to take responsibility for yourself, whether it be action, inaction, mistakes, achievements, knowledge or lack of you are responsible for your own situation not anyone else.

These are just facts, please do not take offense and go off. I was guilty of ALL OF THE ABOVE for a looooong time. I had to change, and when I did...so did everything else.

My biggest tip of the day for you is to Google "(your city/stat or just state name) REIA" [i.e. Orlando FL REIA] and when you find your local Real Estate Investment Association or your local real estate investors club...find out where it is and when it will be and GO THERE! You can see that there are investors of all types do business in your area and you can start to network with them and ask them questions. They have the contracts you need and the money you need (private money for rehab projects or the names you need for your buyers list) to get started. Ask and thou shall receive. Your local REIA will be your jumping off point to your future.

I hope that helps and I never wish ill fate on anyone.

Success can be yours if you want it bad enough to take action!

ps. Market condition do not matter to investors. Successful investors will embrace change and move with the market to stay on top. The core strategies that Dean teaches will work in any market if you apply them correctly.

Good luck, God Bless and I'll See You At The Top!

Jen,

You have a private message from me. Please go read it in your inbox.

"I first signed up for Dean's course back in 2009 before the market crashed. I have been trying different things here and there and nothing seems to be working for me, so I have come back to Dean's site to give it another go since prices on houses have dropped to record lows in my area."

That appears alot different from someone who took a yearlong break. You wrote it as if you stayed in RE, tried different things, and then came back on here to find out about assignments to see if its worth your time.

When people tend to come on and mention "i'm a newbie" "I been on here lurking for 6 months" "i've read all of Deans books and every forum" and then ask the question you did, my first thought is they didn't really read the books. The same goes for when they ask "what do I do next???"

My intent was not to offend, but I speak from the heart and we're all adults here so you'll be ok in the end.

Ask yourself what your motivation is. Do you really want it? How BAD do you want it. If you dont succeed with this what will be your outcome/destiny?

What is your dream?
What is your "Why"?
Say this to yourself "If not Real Estate now, then what and when?"
Have your really wanted something really really bad recently and had to walk away in misery, disgusted that you couldn't have it or buy it. You all know that feeling of disappointment and disgust and sadness almost like you want to cry but dont.
If you have not then....can you pay for your childs college when that time comes or will you feel like what I described above?
If you have not, are you living in your custom dream house with the materials that you adore like oak floors, granite counter tops, stainless steel appliances, and that, oh sooo awesome, jacuzzi tub that you dream about drinking a glass of champaign in???
Do you have a legacy??????????? to leave behind to your children? If you died would your familiy be financially able to stay together without further loss and longing? (dont even consider answering this with your life insurance in mind, thats just an excuse)

I can go way deeper in this but I have work to do cause I know what my "why" is and I know what my life will look like if I dont do this.

What is boils down to is MOTIVATIONS. Once you unlock your MOTIVATIONS all of the rest will follow. Once you stop lying to yourself and making excuses, the rest will follow.

Mental picture, If you were lying on your death bed and could see the ghosts of all of your hopes, dreams, abilities and talents floating around the room and looking down on you, would they be thanking you for the gift of life or would they be angry with you and asking "Why do we have to die with you?"

Food for thought.

I guess no one liked that last one

they work specially with private sellers. Too much work with brokers involed in my opinion.

#20 "Food For Thought" WELL PUT Bernard....THANK YOU.