*** SHIELA'S JOURNAL ***

Today, I am dreambuilding. I will be touching my dream in San Ramon. It has been a dream of mine to own a property in this community called Rubion. It is approximately 6,000 sqft on an acre lot over the San Ramon Hills, overlooking the Valley and the Bay Area. It is a track home, but with a semi touch feeling of a custom home. I am excited about this home, and I still have more accomplishments to go in order for me to get this home.

It's nice to have you back! Congratulations on going for your commercial broker license! And thank you for finding that "second buyer" loop-hole!

The home you're dreaming of (or going after, I should say. ) sounds wonderful! I know you will accomplish in short order all that you have set for goals, and it won't be a dream for long.

God bless,

Rina

P.S. Hope your family is well. I think last we heard you were just moving and had lots of excitement going on. Thanks for taking the time to check back in and share some more great knowledge with us.

It is nice to be back. I will continue to check back in as the opportunity presents. This week I have time in my hands, so I will be on here frequently this week.

This week I've decided to take the week off and chillax! So my husband and I are town hopping. The kids are away for the rest of the week with grandma in AK. So we feel that its the best opportunity to just have an "US" time

Yes, we did move in officially into our new home the last week of October. I think I did mention that we started all over again as far as furnitures and decors are concern -- we sold and donated our old ones. So far we have all the big bedroom furnished. We are still working on our formal living room and game room. Then we still have wall decors and plants to go.

Oh, and we got our backyard landscaped. I actually started back up in gardening in my backyard. I am excited. I am not sure if I started too early, because my garden is not doing very well as the weather has been weird lately here in CA. So I have been close in touch with my Dad who has a greenthumb.

There is still lots of excitements goiong on, but this week I just want to relax and rejuvenate. I am thinking a simple manicure and pedicure with my bestfriend/husband will suffice for today

Thanks again for your warm welcome back. I do appreciate it!

SmB

Today I found a high rise condo in distressed. Asking $1.8Mil. FMV $2.2Mil. Has been on the market for almost 1 yr. I checked records and the owner of the property owes $1.1Mil with close to $100K of back taxes. The property is in an ok condition.

I am going to offer $1.3Mil Cash and assign it to an investor/client of mine that is willing to pay $1.5mil Cash if given 45-60 days to close escrow. I think I may actually be able to pull this one off.

Excited and Nervous...

And Congrats on all. I look forward to reading your journal.

$200K assignment fee. I like that. It has a nice ring to it. Keep us posted.

since I am a real estate broker, I get a broker fee bonus of 3.5% ($52,500) for buyers' representation on top of my assignment fee. Look at me, I am already bragging, it hasn't even closed yet...I am typing my offer this evening.

So I made my phone call to my international investor in Dubai and received confirmation that he is looking forward to purchasing the real estate. I feel blessed with this client as he has been a long time client of mine when I first started in the business, and he has bought/sold over 10 of his real estates with me majority site unseen.

I am typing up both offers this evening and will be faxing both to all parties involved with a 48 hours deadline to accept.

I thought about doing a double closing, but then it dawned on me when I received my estimate from the title company of the 3.33% tax. Rather, I am typing this offer this evening as with a and/or assign taking a risk that the seller may not like this idea. However, I am also confident that the seller does not have much choice as he is months away from a tax foreclosure. At this point it is smart for him to just get out from under this property, take a little bit of cash, and move on. It sounds like its a cut throat situation, and I do feel bad for his situation, but I think I am also doing him a favor as I still see it as a win-win-win situation.

Wish me luck.

Shelia
It is so good to see you back. So many who have been away have been coming back over the past 2 weeks. Glad you all are back!

I was wondering if you could put this in simple laymans terms? I keep reading it again and trying to understand what you did as far as collecting your assignment fee from your end buyer.
Are you saying that you get your assignment fee in cash before the end buyer goes to closing?
Sissy

It is so awesome to see someone out there just "doing it"! Thanks so much for the great advice on the addendum. I hope to use it. I was wondering how I was going to be able to get around the whole REO thing and the "no assignment/no double closing" hassle. I think you have just given me a way out!

How do you set up the "secondary buyer" addendum? Is there some sort of special wording needed? Thanks again!

You are on point! In this case, I tell the end buyer that I collect my assignment fee upfront. As soon as I am paid, I create an addendum to delete my name out of the contract which leaves the end buyers' name behind. Creating this addendum secures the end buyer -- the short sale lender/seller can care less about this; all they care about is one of the buyers funding the purchase. So this addendum deleting your name off, is not required by the seller/lender to be submitted to them. This could be a private contract between you and the end buyer, with you reliquishing your rights to the transaction for a nominal fee.

Verbage that I use for short sale lender to add your second/end buyer into the contract:

"1) Add second buyer: John Smith
2) All other terms and conditions to remain the same "

If for any reason, John Smith ends up backing out or not working out at all, you can then create another addendum to your first addendum to add a different buyer's name:

" 1) Delete John Smith as second buyer
2) Add second buyer: John Doe
3) Close of Escrow: 4/15/09
4) All other terms and conditions to remain the same"

Another Tip for expidited approval: Make sure all parties mentioned in each addendums, along with sellers sign off -- short sale lenders are only following contracts.

So in your first addendum to add second buyer John Smith, make sure that you sign, John Smith signs and sellers sign.

If you require a second addendum to replace John Smith with John Doe, make sure you sign, John Smith signs, John Doe signs, and of course the sellers signs on this addendum.

DISCLOSE, DISCLOSE, DISCLOSE.

Is there any way you could put the actual addendum here? I would like to add this to my paperwork I use. Just to make sure all bases are covered.
Disclosure is so important. Sometimes it can result in a deal falling through. I appreciate all your great insight and sharing what you have learned.

It is really exciting with a lot of you back on the site.
There's a lot of us struggling with trying to get our feet wet with assigning.Could you do what sissy is asking and maybe start a new thread with the way your getting around it with some detail on assigning shortsales and REO's.
Thanks

I have a deal i am going to be starting where i can take commission and i will try the up front fee - thanks for posting

1 problem:
I don't know how to upload my addendum on here.

The form I use is for CA. Addendum could just be a simple piece of paper that says "ADDENDUM A,B,C...."

PM me your email address, I can email it to you.

I use the upfront fee method for assignment fee, not (yet) on commissions. That is a great idea though. However, just re-thinking about it, I am not sure how it may work out because commission is normally paid after we do our job.

I haven't tried an upfront commission fee, but everything is real estate is negotiable, so why not right?

Ok, I will try to post a new thread. I am not sure how much help I would give...but I'll do it because you asked

Today, I am taking a break and spend a relaxing day with my family.

Thursday is my husband and I's designated weekly "Date Day". We promised each other that we will not pick up our cell phones, text message, nor respond to any of our emails til the next business day. Thursday is all about us, and I broke that rule.

During breakfast, I broker every single rule. I answered my cell phone for a call with my escrow company. I text message back my Aunt who is planning our Las Vegas Trip in May. I emailed my assistant back in regards to an investor who needed an answer.

Friday nights is our weekly Family Night with the kids. Same rules as Thursday -- I broke them all!

I feel bad, because I have been selfish and I see the disappointment in my family's eyes.

This morning, I have decided to take a break and spend some QT with my family -- the reason why I have been working so hard for. My "Why".

I know I have promised some investors on the DG website that I will get back to you shortly. Please accept my extension to postpone til Monday. I hope you understand.

Thank you for taking the time in reading this. You are all awesome!!!!

Wow, that's really thinking outside the box. I guess you revampted Dean whole new system of assignment. I really like that because once you get your assignment upfront, the end buyer has no options but to follow through with the sale. Thanks, that's great information!

LS

Welcome, back. Concerning a Short Sale, should it be sold for the full amount owing to the lender, does the seller/borrower has anything to receive. Thanks.

Sandra

very true.....but now i am wondering if the real estate commission would see it as a conflict of interest...what are your thoughts

I so much appreciate you ALWAYS thinking outside the box and being willing to share with us. Hope you don't mind me adding a few more?? LOL (You're the BEST!!)

When you collect your assignment fee up-front, I take it that is non-refundable even if a buyer uses a contingency to back out? I'm wondering, do you already have the inspection done then, or are you assigning places that you KNOW will not have an issue in that area? That is really the only contingency I can understand a person backing out of a contract for. I would guess that your end buyer wouldn't have an issue with financing.

Keep us posted on the condo! I KNOW you can pull it off!! That is so exciting!

Hope you had a great weekend with your family.

Blessings,
Rina

yes it is non-refundable. Its a bit tricky for me, because I am usually the broker representing the end buyer so i have to make sure I am fair as well to my end buyer. The good thing about the area and properties that I assign is that they are usually young in age -- with being 10 years old as the oldest, so I usually have an "AS-IS" clause because I know that majority of these assignments would not have such problems in these area.

I also give an advisory clause that I accompany the As-Is clause that I the broker/seller have advised my end buyer to do their own inspection at their own expense within 5-7 days to back out. This of course is signed and dated. On the 8th day, I make sure that end buyer remove this contingency or I have the right to call the contract void. Majority of the time, my endbuyers will move forward with the purchase without any inspection due to the AS-IS clause and knowing that the property is fairly new.

I hope I helped out a bit. Not sure if i answered you correctly Rina.

Oh and about the condo, we are still under negotiations. Seller is pushing for 30 days closing due to tax foreclosure. However, I have been speaking with all parties and asked for a thrid party authorization to speak on behalf of the seller and listing agent with the county to request an extension for the tax foreclosure sale date, and will pay the proration fee from my commission, which is usually no more than $700 per month for this property. I will keep you posted.

Thanks!!!!

This shouldn't be a conflict. I have closed many transaction with me as the buyer. Unless you're a broker, you have to put the agency/company name anyway. So I don't think they should give you a hard time. And if they do try to discount your commission because you're the buyer...don't settle. You deserve every penny of it, so you should demand it.

this is one is bit tricky, and a great question! In a short sale, the seller usually owes more than what the actual FMV of the property is. So, it won't be sold for the full amount owing to the lender. In this case, the seller/borrower does not receive any proceeds from the sale.

Short sales are fairly tricky, and very confusing -- but can be fun due to its challenges. I hope i answered your question.

Have a great evening

Great job and excellent ideas for the modification to the assignment process. Thanks for sharing this info !! Keep us posted on how you are doing. What I admire about you is that your family is first. You are human and you make mistakes, but you always go back to what is most important. I am sure they forgive you and love you more for it !! Keep it up.

Thanks! Family is first. I think they got over it over the weekend:) We actually did something very low-key. We washed the cars, and did some gardening as a family, watched movies and ate so much! (now I need to go back on a diet!) LOL

Thank you for all the answers and advice!
Glad you got to enjoy the weekend! Now you've got a holiday one coming up. Have a wonderful Easter!

Keep us posted on your deals. It is very exciting to hear of such success!! And, as always, it creates a vision for us to strive for.

Thanks again,

Rina

P.S. Have you seen all the great REI groups on Facebook?

Shelia
I was wondering if you found my email address in your PM box? I would like to see how or what your addendum looks like. Keep up the great RE investing!
Sissy
3treats@att.net