Can I assign contracts on houses that are listed by Real Estate Companies

Can I assign contracts on houses that are listed by Real Estate Companies

I went and talked to a real estate agent today and they said they don't know how I could lock a home owner under contract that is listed through a real estate company because they already have a listing contract with the real estate company. My question is am I only suppose to be making offers on houses that are for sale by owner. If I do find a buyer for a FSBO do I pay the comission for my real estate agent and if so how much is a fair price to pay. I thought I had it figured out after reading Dean's books but most people have never heard of assigning contracts so trying to explain it to them so they understand it is pretty tricky.
All of the advice would be greatfully appreciated.

Thanks Isaiah

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listed property

You can assign a listed property. On your offer, write in "your name, and/or assignee". When you get the offer accepted, you can assign the contract to another buyer. That buyer will be bound by the language of the contract. Your agent will collect a commission from the seller for bringing a buyer. You collect a fee from the new buyer.

Al

__________________

"NOW GO FIND A DEAL"

Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Still a little confused

So do I still have to go and lock the home owner up on a contract giving me permission to resell their home. And what do you mean buy the buyer will be bound by the language of the contract. If I am going to assign a contract to another buyer I have to lock the home owner up under a contract.{Correct} If so how can the home owner sign another contract with me when he already has one with the real estate company. If that is the case wouldn't I kind of be compitition for the real estate agents.

Thanks Isaiah


Isaiah

When your offer is accepted by the seller, you have a contract. The seller has a contract with the listing agent to market and sell the property. You present your offer to the listing agent. The listing agent presents your offer to the seller. Once all the details of the offer are worked out, and signed by both parties, those details become the contract. The buyer that you assign the contract to is bound by those details. The new buyer is taking over the buyers responsibilities on that contract, through a signed agreement between you and the new buyer. This agreement would probably include the fee amount that the new buyer would pay you to take over the contract.

(nice fish, what is it?)

Al

__________________

"NOW GO FIND A DEAL"

Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Thanks

Now when you say that all the details of the offer are worked out and signed by both parties, do I have to do anything special to back out of the deal if I can't find a buyer. Let me see if I am getting all this.... So once I get my offer accepted I just find a buyer interested in the house have my real estate agent show them the house If they want to purchase it assign the contract to them for say 5k and collect that at closing or before if possible. Then my agent and the listing agent will get thier comission from the seller at closing. If I can't find a buyer back out of the deal and move on to the next.

(Its a 21 inch large mouth bass)
What about yours..

Thanks so much.


getting out

In your contract, you need to put some contingencies. Ask for an extended inspection period or partner's approval required with a time requirement. If you do not find a buyer before these contingencies expire, you will need to give notice of contract cancellation.

(mine is a 22" rainbow on a 2# tippit)

Al

__________________

"NOW GO FIND A DEAL"

Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Isiah

You will want to have escape clauses in your offer to the seller or their agent. The contract can say you reserve a certain number of days to do your inspections. If the property doesn't pass your inspection, you can back out of the contract. You must notify the seller within the time frame you have reserved to do your inspections. That is why it is important to have the buyers lined up so that as soon as you get a property under contract they can review it and if not interested, you can notify the seller or agent that there were problems with the inspection and cancel your contract to purchase.

__________________

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


Thanks

You are a big help and I can use all the help I can get.

{Keep up the good fishing}


Thanks

If I find a buyer for a FSBO do I pay the comission for my real estate agent and if so how much is a fair price to pay.

Also is it only the seller on a FSBO that I lock under contract? If I understand it right I am going to lock up the seller and then just assign the contract to the buyer. So I don't lock up the buyer under contract just tell my buyer's I will assign the contract to them for a certain price.

Thanks for all your help
Isaiah


Isaiah

You do not need to use an agent for a FSBO. You can write the offer yourself. If you want to use an Agent, have the Agent approach the seller and see if the seller is willing to pay the Agent to bring a buyer and oversee the paperwork. Many times a FSBO will pay a commission to insure that all paperwork is compleated properly. If the seller will not compensate your Agent, and you want them involved, it will be your responsibility to pay them.

You will need a purchase contract with the seller that gives you the ability to assign the contract (use and/or assignee). You will need another agreement with your end buyer to make the assignment.

Al

__________________

"NOW GO FIND A DEAL"

Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Great Info

This great information for someone that does not have cash and can assign the property.
Kat


Thanks Al

Do you use an investor disclosure statement to indicate how much you're to be paid at the closing? If not,what form have you used to show your fee if you choose to assign the property to another buyer?
Thanks for casting out your advice, Robert


forms

I normally write something myself for any additional paperwork that does not involve the original buyer and seller. I would identify what contract it is associated with, and provide a place for signitures and dates. This informaton will be needed as instruction for the Escrow Agent.

Al

__________________

"NOW GO FIND A DEAL"

Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Thanks again.

That is all my questions for know and once again "thanks" I sure appreciate all the info.


Assigning Property in Ca.

How do we do it in Ca. I still don't get it.

~C~

__________________

Charisse


purchase agreement

can i write up a purchase agreement if i am not an agent?


Question For Alchristmann

I think I understand the basics of the contract. I am wondering about the amount of your deposit when you put the offer together and whether you have had difficulty
getting it back when you escape legitimately? Also, can you provide sample contracts between yourself and the signee or direct me to other resources?

Thanks so much

Rich


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