Assignment of contract used for everything?

Thoughts anyone?

Not speaking from experience, but somewhere I read this is the reason why you find a title company who will handle/is comfortable with a double closing...I think it is the right of contract you are "buying" being the "middle man." It's a "subject to" assignment. It's your non-refundable fee for assigning the property to the end buyer. You're the wholesaler. Read through the blogs or double Dean's info./books about double closings. [Maybe contact Carol Stinson, a DG member, she's knowledgable. Maybe she could help].

Thank you for posting kat. I have sent a PM to Carol Stinson and I find double closing is more of something you do when you are hiding your profits from the seller and buyer. This might not always be the case but, I am being clear with my seller from the start and the same with my buyers cash or otherwise. I know I might find a point where double closing will prove useful. Yet I do not believe dean was trying to get us to do double closing in profit from real estate right now when he introduced us to IEE-type method.

Can you tell me what IEE-type method as long as I keep AoC methods means? What is IEE-type method and where do you find this? Is it a contract. Same question for AoC what and where do you find this info? Thanks, Tammy

This is talked about in the YTYP (Your town, Your Profit) book, and can be found on this website. Basically it's an "Invoice" so to speak, saying either the buyer or seller is to pay you for the closing of the property.

I would use the Assignment form. You can get the retail buyer (with financing) to pay you for transaction directly. At that point, you'll rip up the contract and make a new one between the seller and the buyer. If you try it the other way, the lenders don't like assignments. Or, you could use transactional funding. There are other ways you can skin a cat, but I can't remember the others. Also, finding an investor friendly title company who handles simultaneous or double closings will help, too.

Also, the IEEE is used for round-robin auctions on a fsbo home. What do others think?

IEE is instant equity exchange method and AoC is assignment of contract and it is in "Profit from real estate RIGHT NOW!" book from Dean. Yes it is a type of contract they both are. The IEE is a contract through the seller allowing you to be paid through escrow from the buyers funds so no out of pocket costs is incurred to the seller. Assignment of contract is a way to be paid a fee for withdrawing your position in the transaction in the purchase agreement contract. Both are contracts where you get paid for the equity you founded in the deal no more. Another way of saying it is wholesaling.

Yet most wholesalers only know of the AoC method for end cash buyers. Dean provides a method to work with those that require a loan. It is however an uphill battle to get a title company to work with this method as it isn't very widely known and it worries them that you are breaking the law by trying to fill the position of a broker when in fact you are not. You are merely selling your position in the transaction you are not advertising or being paid to sell their house for them. Your reasons are purely self interest only even if it does aid others in the process ^_^

Dean always says be upfront and honest with sellers and buyers, yes. Not suggesting hiding anything...

I am sorry I am unsure of your YTYP book you are speaking of. Though, I have considered what you are saying. The only problem is in the fact that first I've never gotten a mortgage but, I believe if this is a retail buyer seeking a loan and are unable to get it through traditional methods they would not have an extra say 1-5k in hand for my fee. As they are saving that for closing costs and down payment to make the deal work. However, lets say I did as you said and had them pay me once they were able to establish the mortgage guessing cash was dropped into their checking account and this person cut me a check and all that I would need a different contract then an assignment contract as an assignment contract is stating I am assigning a contract I have in locked up and they are taking my place NOT one I ripped up as that would remove me from the deal all together.

Hence why the IEE method is better if done properly as stated in Deans book. Sadly as I said in my last post it (IEE) however is acceptable to the mortgage brokers it is an uphill battle at the moment for me with the title company as I don't think they can read...lol that and most people don't like new things that take them out of their comfort zone. If I can get them to understand this ,even though it is in pretty plain English, they will more than likely haven't a problem at all doing it.

On the flip side as I said the mortgage broker doesn't like assignment of contracts either for the some of the same reasons leading me to believe a lot of people have been misinformed somewhere along the lines and are again not liking the idea of working out of their comfort zone. Yet, it is not the broker with the problem but the lenders he represents. They like reo's don't like seeing and/or assigns. Some have commented to use a company name but, did not however say if or not they would still have and/or assigns yet that the contract was assignable. However all contracts are unless it is said otherwise. The and/or assigns is to protect you. That is what my lawyer said avoiding my question of if I could assign the contract without righting and/or assigns without putting it somewhere that the contract like it is contingent on being assignable.

Either way it confuses lenders thinking when they see the contract if I understand my mortgage broker correctly seeing my name or my companies name in the buyers spot at the top and apply for a loan for someone else. Also I think I need to understand mortgages better to know if the buyer is able to get the mortgage when he/she gets the cash in hand before or at closing in order to pay me from those funds. That is also saying he gets a mortgage for the cost of the house plus my fee. Say I lock it up at 75k he needs a loan for 80k and I am unsure if the lenders would do that or not... I also think I need to have my lawyer change the line saying "In exchange for compensation in the amount of $_________________________.
(________________________________________________________________________)" adding something like: in addition to the sales purchasing price of ____________. Though not sure again how the lenders will feel about that still as they prefer to see an (A) -> (B) transaction not an (A) -> (B) -> (C) transaction and the reason to not do double closing is (1) I don't have funds for starters (2) that is more closing cost I have to come up with in the deal (3) Personal reason at the moment I can't have properties in my name ^_^...yet.

wow long reply lol sorry.

Yes, sorry I had mix thoughts there thinking about something else. Double closing is risky if the end buyer bails on the contract for some reason. I'm still looking into that though. Thank you for the suggestion.