My First offer Accepted!!!

Nice work - You use a standard purchase and sale agreement with the and/or assigns clause and then the assignment of contract, just like you said. But your buyer will not need another contract - he just uses the one you assigned to him!
You know who you are assigning to - I hope? You said "end buyer" - an investor or actually someone who wants to live there?
Be sure you have a clause in the contract that gives you an out - like subject to inspection.
Keep it up and let us know how it goes!

Thank you.
Makes sense. Don't have actual buyer in hand....have a few options though...I will post results!

Thank you.

Linda

You could use three contracts. 1 from A to B, the assign contract from B to C, then another PA from B to C for the total price sold to the end buyer/investor. Am I wrong on this one?

Anyway, once you turn all the papers into the remaining papers into the title co., they'll tell you whether or not you needed that last PA contract or not or any other document needed or not. Is this an offer off the MLS, or a FSBO? If it's a fsbo, you shouldn't need to have the realtor draw up the original contract. It's great that you have someone on your power team, that knows or understand what you're doing.

It's an MLS listing...I think you got it straight...basically what Gena said...worse case..the title company will know what's missing.

Thanks much.

Linda

Linda,

you will need an 'assignment fee' document to get paid your fee between you and your buyer which will need to be given to closing agent, otherwise all the money of the sale will go to seller and you will be left out; unless you get your fee paid cash by the buyer prior to closing.

Wishing you success,
Valerie

I got that covered!

Thanks,

Linda

Let us know how all goes! Good Luck!!

Can't wait to hear more about this!

The listing agent was not familiar with my strategy has having never worked with an investor before. I answered her questions then told her it's good for her to experience working with investors. There will be more opportunities for her in the future. And that I hope we can work together again.

Linda

I believe you should use your own contract. The contract the agent is drawing up will protect him/her. Hope this helps and congrats! Keep it up!

Hummm....I don't have a contract that I've prepared yet. Question...agent is asking to fill in the blank on Mortgage contingency or waive? Not sure how to answer as I don't know how end buyer will buy at this moment.

If I were you, I would not sign any of that. I would use my own contract and have my local attorney review it. Only a qualified attorney can let you know what the contract is. And, being said, the contract protects the hand the gives it.

with that said, i'll have her send me her contract, then take to attorney. I still need to know what to answer to her question though for mortgage contingency. Can it be "subject to" buyers choice of payments? I at a brick wall.

Thanks
Linda

Your attorney should be able to help you with that question. Is that something thats in the agreement?

yes, it's her wanting to know how the purchase will be made...loan or cash. I just put a call into my RE agent for some direction.

Thanks,

Linda

congratulations! best wishes as you proceed through the deal!

Thanks, Linda.

Are you using CASH?

I'm not buying..i'm assigning...and I don't know exactly how my buyer will be paying.

Do you already have a buyer?

If an agent submits an offer acting as your agent (buyers) for you they MUST use the State board of realtors approved contract. The sellers agent would not accept a non board approved contract even if your agent submitted one. So when submitting through a agent you must use their board approved contract.

Now if you are working directly with the seller with no agent involved you can use any legal contract.

As far as your offer Linda. If it is cash, then all finance contingencies are waived, obviously. If you are planning on wholesaling this to another investor your terms should be cash or pre approved hard money only. Non refundable earnest money.

I know how to write your contract so that if your buyer has cash OR needs financing it will be ok either way. Most financing deals won't work because of YOUR time frame to closing. Your buyers need to be cash for most assignments to work in the normal time frame.

That is why Dean says find real "cash buyers"!!

Linda, have you already done the 3 day thing???????

Michael Mangham
MD Home Acquisitions LLc

Thank you for that explanation! I understand now...seller agent vs FSBO.
I get the 'cash buyer' urgency now as well. None of this really made sense until this time....doing a deal!

I did the 3 day event...2 separate ones actually. Last was BOG. Believe me, it's all coming together now. I get it with your explanation.

Thank you so much.

Linda

That's the best way to learn. You can read the books all day but it really comes together when you actually do it. Great job taking action!

Agent= you use their contract (period). FSBO= use any legal contract. Your end buyer needs to be able to buy cash. What are the numbers on your deal?

This is an Assignment of contract correct? If so then you would be looking to have a buyer that is an investor (with cash).

If on the other hand this is a transaction where the buyer would require a loan I would go with something more along the lines of IEE route. If you have Dean's book "Profit from Real Estate RIGHT NOW!" page 149 or Chapter 8 is where you would like to read up on that and what forms to have signed to make this deal work out well for you. Dean also provides insight on how to use a standard state-approved real estate purchase agreement's earnest money clause as an exit strategy that ties well with the Investor disclosure statement and seller's acknowledgement form that has a contingency to over all give you a way to exit from the deal and protect you from the defaulting penalties all together allowing no cash out of pocket for you no matter if things go good or bad.

With that being said I would hope that answered your question and the agents.

Good luck and keep us posted!

Jcommons

I am unsure what you mean by the most financing deals won't work because of "YOUR time frame to closing". Maybe this is because she is talking about assignment of contract deals. Those you normally have a buyer or list of buyers interested in that type of property before you start looking at them so that you contact them after your have finished the purchase agreement having the deal finished in hours. I have read few different contingencies you can put in your offer to purchase or a letter of intent(LOI) stating something that might not be met like in an IEE contract financing approval for example giving you a way to default from the contract. This would allow you to use the additional earnest money clause in the standard state-approved purchasing agreement contracts to allow no upfront earnest money as well as your time frame required to provide it to the escrow agent. The contingency is the protection from the default clause that is the effect of defaulting on additional earnest money preventing the outcome of them attempting to sue you in order to force you to purchase the property.

The only way I can see how you would do this on an Assignment of contract is by using a contingency in the offer to purchase that would state something along the lines that the purchase agreement is contingent upon partners to approval of the property (heard of that contingency used quiet successfully). Guessing the partner be the assignee... I think that would work and the 14-30 days for additional earnest money is the time frame in order to get that approval, your earnest money + POF letter from assignee. This way you are protected from the default and earnest money clauses and with no out of pocket earnest money giving you all around protection if for some really weird reason your unable to pass on this deal to an investor.
Note. please correct me on anything I've stated if you know otherwise I know everyone in our DG family could use this kind of information, thank you.

***Would someone by chance post how that contingency could be legally worded, if even required to be worded in a certain way, into an offer for the property so as such is binding?

fyi I am not an attorney and even if I was things might be different in another state via state-approved standard purchase agreement or other laws. So be sure to refer to a RE attorney for legal counsel my comments are based on me reading Texas's dry purchase agreement and the things Dean has taught in his book Profit from Real Estate RIGHT NOW!

Good luck and again keep us posted on the outcome.

Jcommons

Oh, I am so happy for you ! Great job !

Congrats to you Linda ! I am also a newbie at this and can't wait till I can "make a deal". Keep up the good work.

Thank you to everyone who's been encouraging me. After reviewing and reviewing and re-reviewing these deals....I discovered they're not killers. Let's see what happens.

Keep me in your prayers!

Sincerely,

Linda

Thats OK!! This is how you learn. WAY TO TAKE ACTION!! Hey, you were able to determine they were not good deals. It will get easier and easier.

You can always re submit a lower offer.

What were the numbers?
Your offer price?
Remodel/rehab?
ARV?

Why weren't they good deals? Hopefully your info will help others to see what they actually need to learn and what action they need to take to get there!

Dallas. You only need the original purchase agreement with the seller and the assignment contract. The assignment contract states what you paid and what your fee is for the total amount due from your buyer. Two contracts only, not three.

Michael Mangham
MD Home Acquisitions LLC