OfflineYesterday, I locked up a property for $14000.. 2 BR, 1 BA Mill house. It is in need of repairs and remodeling. Owners are still in it and have lived there for 16 years and are currently wanting to move out of state by the end of this month. I set closing date June 15 so the clock is ticking.
1)
I mistakenly let the seller sign on the puchaser line.. first mistake. Do I need to get a new contract signed or can I white out her name and put mine and initial it? (I did not have another contract with me)
2)
Being this is my first contract that "I" filled out, I'm not sure I filled it out correctly... meaning not sure if I got all information correct.
Property: Do I need to attach copy of deed to make it a legal contract. In that area, I just put book and pg#, lot#, plat# etc taken from owner' deed.
Ernest Money: I didn't put anything down yet because I stated it will be paid at closing.
Now with that said, I want to assign the property to a rehabber. Does the original contract become a part of the assignment contract? Should I just get a bird dog fee or do the assignment, or should I wholesale it?
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
If you change anything on the contract, make sure that all parties intial
any & all changes or the contract will become void. As for the the EMD, I would give $ 10.00 ... this is the consideration part of the contract, which is one of the parts that make it legal. With no EMD, the other party can back out of the deal stating that there is no binding contract.
You do not need to attach the deed. I just use the common address & also the legal description, Lot #, Block #, pages etc.
The selling strategy is up to you, remember a bird dog fee will be only
$ 1000 to $ 1500; while doing a wholesale deal &/or assigning it you can make 5K or more depending upon the profit margin on the property.
Shirley,
there has to be money exchanged for the contract to be valid; you should give the seller anything, even $1.00 will make it a binding contract.
don't white out anything without the other party being present to initial.
assigning is wholesaling-why would you do birdogging if you already have the contract? you already did all the work so you might as well get your fee for it.
wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
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I am going back today and take a new page for her to sign and will give her an earnest money check! Hopefully she didn't know it wasn't a binding contract! I thought I read somewhere recently on this forum that only realtors think an EMD has to be made, but that in essence it did not. Do either of you know where I read that?
Valerie, you're right.. I already have the contract... somewhat...and I'll be able to assign it. I have already contacted a rehabber and he is interested.
But do I need just a purchase agreement for the initial purchase if I know I'm going to assign it.. and then the assignment contract when I am ready to assign it? In other words, I know I need both contracts, but the seller doesn't have to sign the assignment contract at some point does she? That would just be between me and the new buyer, correct? I hope this is right because I didn't have her sign anything except the purchase agreement.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
You would get the seller to sign the purchase agreement and you sign also. Then get your assignment contract filled out. The seller does not sign the assignment contract. The assignment contract requires your signature and the buyers(new party)signature.
Hope that helps.
To get something you've NEVER HAD
DO something you've NEVER DONE.
You did read that on this site. This site is a great place to get advice, but it is not always correct advice. Just be aware of who is offering it and maybe check with a couple of sources.
All the people who have given you advice so far on this particular thread are all thumbs up!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Shirley,
Purchase agreement-seller signs it; you sign and put words "and/or assigns".
Assignment contract- you and buyer sign
Then on purchase agreement, you put buyer's name next to "and/or assigns"
Let us know how it goes!
wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Hi Shirley - good to hear about getting this property under contract! Any update on it?
- Tom