First Two Successful Wholesale Properties

Congratulations Roger, way to go!

I'll take a $10K payday anytime!!! Way to make a deal happen.... Congrats!!!

Wonderful! Glad your sister talked you into it!

And by the way, I LOVE your new picture! $11,000 makes you smile very nicely!

Karen

Great info Roger. I just had a quick question if you dont mind. Did you go through a title company or real estate attorney to finalize the assignment of your wholesaling contract. I have noticed that no one appears to ever really specify if they are utilizing title companies or real estate attorneys to finalize their assignment deals.

Thanks, Marc Martinez
MME Home Investing Solutions

I'm especially impressed that you checked with the other investor you know to make sure that you weren't stealing his deal.

Keep us posted on your progress, I have a feeling that you are going to go far!

Jennifer

Is the best policy, but not everybody will do what you did and verify with others. Congrats on both deals!

Marc,

It really does not matter whether you close at a Title Company or a RE Attorney (or whatever is legally acceptable in your state). An Assignment of Contract is simply "selling" your contract to purchase a given property.....nothing more....nothing less. Both a Title Company and a RE Attorney should be able to handle a closing like this. It might cost a little less to close with a RE Attorney, if you have one on your Power Team, as he probably won't require a Title policy (as most Title Companies will). Other than that, there really should not be any difference.

Good luck.
--Walter

Thanks everyone for the replies and congratulations!

We need to just continue doing the right things up front that we have learned here and the middle and back end will happen.

Thanks Karen for the comment about the smile. I notice that you have a big grin in your photo too! Hmmm... I think I will begin another 30 day count-down to my next big smile.... together with a new post in a journal that says SMILE ! and explains the deal.

Marc Martinez. Thanks for the question!!!
I just want to lay out a "typical" scenario for a wholesale deal more for my own benefit I suppose. (I know there are other scenarios too).

Step1. Get buyers list.
Step2. Get a signed purchase agreement contract for a home that meets your buyer(s) criteria.
Step3. Market the property to your buyers.
Step4. Make agreement with one of your buyers for this specific property. They will want to know details about the house and the terms of the Purchase Agreement. (price, closing date)
Step5. FAX or e-mail your signed-by-you Assignment of Purchase Agreement to the Buyer that agreed to purchase the property, for them to sign and mail back to you. This will specify the agreed amount and terms of the assignment fee - for example: $3,000 at closing.
Step6. Take special note of any other buyer(s) who may have shown interest in the property, just in case something falls through with original buyer.
Step7. Keep informed as to when/where that closing is to take place.
Step8. Closing company, or attorney, mails you your check.

Marc, please note that in the case of both of our assignments, we did not determine the place of closing. So I did not make the decision as to whether a Title Company or RE Attorney would be used. It was the end-buyer that decided where they wanted to close. Both took place at title companies that had a RE attorney on their staff. In one case, the owner of the title company is a RE attorney. I have not done any closings yet with just an RE attorney (without Title Company) but that is just because the ones that I have met didn't really seem like someone that was going to be good to have on my team for the long-term. We do have a title company that we are using for properties that we are fixing up ourselves.

There was one potential assignment deal last fall that would have been closed with only an attorney if I had found a buyer for it. It was a probate house and was being handled by a Probate Attorney. However, in that case I did not even sign the Purchase Agreement because unfortunately I did not have a buyer for the area where the property was located. Too bad I had a weak buyers list.

I hope that answers your question Marc. And thanks Walter (lonestargumby!) for your comments on this as well.

Roger
Jaguar Investment Group

Congratulations on making it happen!

Thanks Roger for the detailed response. I appreciate it. Good luck on your continued success. Hope all continues to go well. I believe that the legal aspect of how to legally arrange these assignments is what holds many of us back from completing these deals. It appears as though in many cases the end buyer may already have a title company or attorney in place to finalize these deals. Thanks again for the response!!!

Walter, Thank you for your feedback as well. I appreciate it. As with many other Investors, finding a title company or attorney who is willing to do assignments is the difficult piece. Thanks again.

you are an inspiration to us all!! Keep it up!

Very nice, Roger! Congratulations! Win-win-win!
Kudos to your sister for her encouragement! Good to have that support.

Congrats on that wholsale deals! Say congrats to Monica too. So glad you are getting it done on your side of town. Too bad about the probate, you should have called me to see if I had a buyer for it. Don't let the good ones slip away, somehow we can get it done.

Great Job!...

Hi Roger,

Great Job! I wanted to see if you can help me a little. Did you use your own written contract agreement with your buyer? or did you use the one on Dean's book? could you say what wording do you use on your bandit signs? You said you locked up the deal with seller first then looked to see if one of your buyers were interested. could you say what contingency you used and how much time you had? what wording do you use if you are making an offer with a seller that has the listing with an agent? Do fax a copy of check for earnest money and if so if your offer is accepted who's money do you use at P&S? I am sorry I potentially have a wholesale deal but I do not want to screw it up. If you want you can PM I would appreciate your help.

Thanks

Way to go Roger! Always helps to have use your resources around you

Keep em' coming!

This is so motivating to me, because some times you get discouraged then you login to DG and see deals like this. My payday is coming

Hang in there! Always use this site to network and reach out to others for help if need be...thats what were here for:)

I'll Stay focused, and will continue to login on DG site every day.
Thanks.

It motivates me to hear some of you say that I am an encouragement to you. I have been in that place before where things are not going as you had expected and you do not know why and so it is so easy to get discouraged.

Also, over time I am learning to connect with others... not an easy task for someone who worked more than 25 years interacting more with software than with people! Sounds like if I had reached out to Cathyb last fall instead of trying to make it all happen by myself I could have had another deal because it really was a good property. A real estate agent bought the property after I let it go. (Cathy is in same market as I am and knows where Rosemount is). Also, my sister and I are working together so there is another team effort! Then of course there are all the great people on this site!

Maria, I have a one page agreement called "Assignment of Real Estate Purchase and Sale Agreement". I cannot claim it as my own in that I did not create it. But I DO claim it as my own in that I am using it as a legal document! I think the source of what I have was from the first house that I rehabbed in 2010 which I purchased from a wholesaler. I started by copying that document. However, I am certain that I made improvements to it probably from other documents I saw around.... ie/ local real estate investment club docs or Dean's assignment document. I have not yet run my real estate documents past a Real Estate lawyer for their opinion ---

Wording on Bandit Signs -- We Buy Houses, Any Condition, We Buy Ugly Houses XXX-XXX-UGLY pretty much what others recommend around here. We Buy Houses for Ca$h.

Contingency: Buyer X Elects to have a property inspection performed at Buyer's expense. (along with an Inspection Contingency Addendum) The Inspection Contingency Addendum was two pages and contained the following clause: All inspection(s) shall be done within 7 business days of final acceptance of this Purchase Agreement. Or 10 Days, whatever length of time you think you need for your buyers to make a decision.
NOTE: I called the PMI hotline regarding how to best position myself with my buyers. And I thought they gave some good advice: They said that once you have identified a property you should get ahold of your buyers and describe it to them. You do not need to focus in on the specifics, only that you have a property in negotiations that is is neighborhood X and it is a 3 BR/2BA with a 2 car garage (that could be made into a 4BR/2BA) and I think I can get it for $$$... to gauge what their response is. I have done this and sometimes they will say... I try to avoid that neighborhood. Or, they might say, I am willing to pay X dollars for a house there... So that helps you to know what you are shooting for (plus enough cushion for your assignment fee).

As far as making an offer with a seller that has the property listed, you will make the offer to the agent of course. I have two different purchase agreements. One that is really short, (1 or 2 pages). And one that is more complete. (about 20 pages). The short one is for FSBO (for sale by owner) and the long one is for a listed property where they like to see something more formal. But I stick my same contingency clauses in there (on Inspection Addendum page OR just on a blank Addendum page at the end) to protect myself. My long purchase agreement is nearly identical to the standard purchase and sale agreement that is used by all the big real estate offices around here.

Yes, I have FAXED a copy of a check over to a Real Estate agent before, however, I have not yet closed this way for a wholesale. The wholesale deals I did, in one case I gave them $50 Cash as downpayment and in the other case, $10 Cash. I did not recover that downpayment when I assigned the property. I can only guess how a wholesale deal will go in the case where you have to put down $500 or so because a bank or broker requires it... so I will leave that question to someone else.
But I hope to find out on my own very soon!

Last year I did multiple rehabs and put down $500 or $1,000 on those. It was my own money. Then I used Hard Money Lenders to do the rehabs.

Hope that helps.

Roger
Jaguar Investment Group