OfflineIf i find a home that is a tremendous deal but it is listed with an agent and i would like to assign that contract to an investor, how would i go about doing so with an agent? How would i explain this to the agent? Who would pay the agents commission the seller or you who locked up the deal? Obviously you would be losing profit because of paying the agents commissionand the agent just seems to complicate things cuzz theyll say its illegal especially here in wisconsin. I see tremendous deals just looking through the realtor magazines in my local grocery stores and would like to lock these up and possibly pass them off. someone in the dg community please help answer these questions thank u.
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Hi Adam,
I have learned that assignment contracts can only be used between
(A & B)...
(A) has to be the seller, not an RE Agent.
(B) is you Adam.
Look for deals in the area of 'For Sale By Owner' ads.
In your question, (A), the seller, would be a bank or a lender and they will not accept your assignment contract. The banks & lenders WILL however accept a double closing on a deal. If you have buyers for your deals, then do a double closing and you will do just fine.
Theo T.
CogniWorld-LV
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
If you have and/or assigns in the contract it doesn't matter if it is with an agent or a FSBO. It works the same way. If you don't want to use and/or assigns another way is to have a clause in your contract saying "This contract is assignable."
An agent should already understand what that means. If not, just tell them that you work with a number of people who purchase a lot of property and sometimes one partner buys it in his name and sometimes another does.
The seller is paying the commission so it is not affecting your profit.
Karen
*edit* Theo is correct in the above post (we were posting @ the same time) as far as if the seller is the bank , as in the case of an REO. They will not accept assignments. But if it is a realtor repping an individual seller it will work. It does not have to be ONLY a FSBO. You will have your original A-B contract and then when you find a buyer you simply fill out an Assignment Contract and they take over your original contract in your position.
"You're never too old to be what you were meant to be!"
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Thank you for the clarification, Karen and good point.
Theo T.
CogniWorld-LV
The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.
-Bill Copeland
I am a rookie student that bought Deans book two days ago (have not received it yet.) Long story short, I have a friend at work that has given me the opportunity to find a buyer for him, but has a real estate agent. His house has been on the market for 7 months and is willing to do whatever it takes to sell his home. WHAT DO I DO WITH THIS OPPORTUNITY?
Stephen Cason
If your friend's home is under contract with a real estate agent, it could get complicated if you know little about the process at this time. Ask your co worker when the contract expires with the agent. If he is unhappy with the agent he can fire him/her as well. Start reading Dean's books
ASAP !! There will be a great deal of information to help you along the way.
Here are a few questions to ask your co-worker:
Why hasn't the house sold yet? Has he had any offers on the house? Is the Price too high? Needs repairs? Is it a rental? Does it need staging? Is he willing to do a Lease Option?
If you can, ask your co worker to let you see the house inside and out.
Take a deep breath and just get started, READ READ READ Dean's books !!!
Best of Luck!
Suzy B
You absolutely can work an Assignment deal with real estate agents. Like kareng said, the seller pays the re agents commission and will not affect your profit at all. Assignment deals are legal in every state. If an agent says that it is illegal then they are simply inexperienced with working with investors and working creative deals. It's not their fault, most real estate agency's do not train their agents in these kinds of deals. Usually when they say that they are illegal it is because they simply don't know and that is their default answer. Like Karen said, simply explain that you work with a lot of people or a group of investors who purchase a lot of property and you are not sure who will be closing on this deal at this time.
KEEP MOVING FORWARD
"If it is important to you, you will find a way. If not, you'll find an excuse."
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thank you for the insight!
Stephen Cason