HELP 1st ASSIGNMENT DEAL-Offer Accepted

Not sure about the CAR form, I am very new to this as well, but I have heard of people sending a copy of a check (they do not cash it). Also, if you put in and or assigns in the contract, you should be ok. Jeremy

If you already informed the seller of your intent to assign the contract then you only add the "and / or assigns" after your name in the buyers' slot. You can choose to set it up as if you are indeed purchasing the property, and by doing so market the sale at a Higher rate than merely an assignment. By locking up the deal it's yours. NO ONE can rip you off. You make the agreement as if you will purchase it, and then show the deal to interested parties. Then if you choose to assign the deal you use an assignment document to lock up your fee from the New buyer. That document is presented to the title company with the purchase agreement that the new buyer signed. I am not sure about the CAR thing....that could be a local thing. Bottom line is Lock it up. Leave ALL the contingencies in there like "subject to : buyer finding financing, appraisal meeting expectations, home inspection meeting buyers requirements....etc....that way no matter what....even if you don't find a buyer....you don't have to buy, AND you get your earnest money back. There's no risk here for you. You should be able to give the Earnest money in the form of a NOTE as well.....no check involved.

I would guess that is a California Association of Realtors form. Get one from your Realtor. As soon as the contract is accepted, the earnest money would be given to the title company, and it would be cashed and put into an escrow account (check with the title company to be sure).

Al

I found out that a CAR form is California Association of Realtors purchase agreement form.
I'm going to try and send in the purchase agreement with jason smith and/or assign, like Anita does.
My Realtor's working on it.

Kbarnes Wrote:
There is no need to ask if you can do an assignment. You just do it. Send them a purchase agreement with all contingencies and the "and/or assigns" clause filled out. If they ask, tell them you are a wholesaler and have signed all your contracts this way. You will be using your investors money to purchase the property. The check they are talking about is probably a down payment of some sort esp since they'd like a proof of funds letter and a copy of a deposit check, but again, all you would need is a lil earnest money at which you should get back. Lastly its only a copy, you can't cash a copy. Ask around the forums to see what they think about your deal and what you should do as far as being up front. But thats all I would do is submit a purchase contract with all the clauses, and some earnest money to them. If they call and ask what the deal is, then tell them you are investor that wholesales properties and you use your investors money to purchase the property (which technically you do).

Thanks Kris for the advice
Jay

If the bank won't accept an assignment and I proceed with a HML and do a double close,How do you do this with no money out of your pocket.Like the deposit check.Lets say $2000.I dont have that in my account.Is there a way around this because my Realtor needs to know.She's writing up the agreement and where trying to cover all grounds.

Thank you
Jason Smith
San Diego

Jason
I don't know your state, but I do know that some REaltors WILL tell you they won't cash a deposit/earnest money check and then they go ahead; made me look bad in from of my buyers; another realestate company close by honored the agreement not to cash the check; I'm still learing, but I've never heard of merely sending a copy of a check. Just get good clarification on that.

If your offer is ACCEPTED, then you will need to give the earnest money as a deposit. There is NO way of getting out of earnest money. Earnest money is required for a contract to be a contract. If your buyer does not buy the house, you could be at risk of losing your earnest money. Make sure you have certain clauses in place so that you don't lose it. One clause that tend to use is:

1. subject to partners approval.

Maybe im wrong but if you are assigning the deal why would you need to put a deposit down if you are not buying the house? Arent you passing the deal along to the end buyer. If I remember correctly, You agree on the price with the seller. Get it under contract with your and/assign get a contract with the end buyer including your fee. Then when they close you get your check.
In a double close i know you need proof of funds and a deposit. I don't think it needs to be 2k, If i remember sistreat said you can give 10.00 or 100.00.for deposit. please correct me if im wrong.

Keep in mind that there will be TWO CONTRACTS HERE. One will be with you and the REALTOR for purchasing the house and second will be the one with you and your BUYER. YOU NEED TWO CONTRACTS. YOUR RELATOR DOES NOT NEED TO KNOW ABOUT YOUR SECOND CONTRACT WITH YOU AND YOUR BUYER.

It is pretty simple. The key is in the contracts, which can't really be given as a specific item because it varies state to state and only an attorney could likely (maybe even legally) tell you what exactly the contact must say.

But here it is in a nutshell:
1) Find owners who are want out of their house for whatever reason. Negotiate a price with them that makes the house a great deal. Explain to them you are an investor and have resources to get the house sold, or you may buy the house yourself. This will be most effective dealing with people who have no realtor. A realtor will make this harder to do for a few reasons.

2) If have negotiated a price worth attempting to reassign, or may be lucrative to buy yourself if you so choose to do so, then tell them you want to create a contract. The contract is like normal contract when you buy a house, except it has the terms added that you have the right to reassigning (transfer) the buying rights to a third party at any time. Usually you want at least 30 days before contract expires. 60 or more is better, because you don't want someone to wait until the contract is up just to go and get it at your price. You do not want to put up any earnest money down and there should be no penalty for the contract expiring without the property selling.

3) Now you start marketing the house once you have the buyer rights, at the price you are under contract for. Your targets are both investors or general home buyers (but they should be investment minded, maybe even pseudo investors). This is the part, like finding that house, that will be dependent on your efforts. You seek out larger investors (use google) and present your deal. A lot of this can be done by email. You can also post ads on craigslist like you would if it were fsbo, but direct the message to attract an investment audience. The thing is, you want to really focus on people are doing investment though, because they will be looking at hard numbers as opposed to a picky future homeowner. If you don't deal with it as an investment property it can turn into a problem because regular buyers want to view the home, be picky and generally turn it into a hassle like a realtor deals with that probably falls outside the scope of what a reassignment is suppose to be.

4) You will negotiate a price to transfer the home to them. You will sign a contract with the new buyer to transfer the rights of your contract with the seller to them for X price. They pay you, they assume the contract, you walk away.

Use a reasonable attorney familiar with your local laws and procedure to draft the contacts on your first deal to be sure. Once you do just one in your area, you will then know the concrete details of it and have the contracts so you all need to do in the future is switch names and prices and such.

Hi guys,I was just wondering,where would I put the assignment clause at on the purchase contract and what would I have to write?

Some states do not require money to make the contract valid... Many sellers (unless they are desperate) will want you to have "skin in the game". It's all negotiable. If you can negotiate $10 or ZERO earnest money... that's great! Make sure and check your state laws on this and what constitutes a contract.

Hi everyone!! Newbie starting out be gentle. Does anyone know if you have to provide earnest money to make a contract valid when doing an assignment to an end buyer here in Idaho? Thank you Damian