Help With Possible First Assignment

Comments(6)

• 
  kingston2nd July, 2004

  I as well wanted to know additional details about the responsibility when assigning a contract.

• 
  keoki2nd July, 2004

  once you get your assignment signed, take both the original contract and your assignment to the title company, and they will take care of it from there. Just tell them where you want your money deposited or sent to.

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  n_armond5th July, 2004

  Could someone explain the assignment process to me. I have the agreement of purchase and the assignment of contract form already, yet when you find a motivated seller, how much do you generally offer on the property? I will be focused on offering at least 30% below FMV. Also, do you have your own contractor come in to do repair estimates or do you request that the seller has a licensed contractor come in to write up a formal bid? I see properties available frequently, but I want to make sure that I am fully prepared to speak with a motivated seller.

• 
  JeffAdams5th July, 2004

  When assigning a property the best thing to do is to open escrow as an "assignment." Very simple process to do. All you do is contact your escrow company and inform them that you want to open escrow as an "assignment" and they will put it in the escrow instructions. As long as the seller signs the escrow instructions, you are fine. I usually tell my sellers that I am going to close in my partners name for tax purposes. They usually do not have a problem with this, as they just want to sell the property. You then contact your "wholesale" buyer, have them give you the "wholesale" fee you are charging typically $3k - $10k and then contact escrow and "assign" your escrow to your "wholesale" buyer. They will prepare an amendment that both you and the seller will sign and that is it!
  
  Sometimes when you are buying from a bank, they will not allow an "assignment." No problem, just close it in your name and then collect your "wholesale" fee and grant deed to your new buyer. If you have financing arranged with a "hard-money" lender, you generally can pass the financing on to your "wholesale" buyer assuming they have decent credit.
  
  In terms of what fee to charge, it varies. It all depends on what you purchased the property for. The key is to leave room for you "wholesale" buyer to make a profits as well.
  
  
  Best Riches,
  Jeffrey Adam
  
  _________________
  "The only place success comes before work
  is in the dictionary."[ Edited by JeffreyAdam on Date 07/05/2004 ]

• 
  noced715th July, 2004

  Hi all, I am new to this and have been lurking a couple of days, no equity and extremely bad credit. I live in FL and new SFR construction goes up about $10k a month. My question is, if I have to do a double close, do I have to have financing in place for the double close, is this absolutely necessary? I was looking into doing the same thing with new properties (assigning contracts) and financing is my only obstacle.

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  n_armond10th July, 2004

  Thanks for your response.