when i flip a contract to my buyer and the transaction goes to the title company for closing am i (the person selling the contract) charged penalties and taxes?
if so how much? PLEASE EXPLAIN HOW THIS WORKS.
You need 2 contracts for this. The first one is to purchase the property from the seller with an assignment clause in it. Then you need an assignment contract with your buyer showing that you are selling your contract to him and that he is responsible for fulfilling your contract with the seller. You will then get the difference between your purchase and selling prices and the seller will get his money directly from your buyer. If you need a copy of the assignment phrase and/or assignment contract, let me know.
Thanks for the info Just Passing Thru Newbie and being very punctual.I do have 2 different contracts. The contract I use to purchase from seller with the clause "and or assigns as buyer", and an assignment contract for my buyer.Im very clear on that part, and also understand how the distribution of funds works through the title company.
The ? is, am I taxed on the funds I recieve at the closing table? If so how much?
I'm in LA, and getting into REI. Trying to line up the proper contracts/paperwork for doing subject to, short sales, etc. I was reading this post and was wondering how you arrived at the forms you use? Do you mind sharing with me the forms you use, or at least pointing me in the direction I should head to obtain same? I will definitely be contacting and interviewing RE lawyer(s) to evaluate what I end up using before I get involved.
Also, let me know if you are interested in partnering on any deals, either LA, SD, or anywhere in between. Do you do any rehabs?
You need 2 contracts for this. The first one is to purchase the property from the seller with an assignment clause in it. Then you need an assignment contract with your buyer showing that you are selling your contract to him and that he is responsible for fulfilling your contract with the seller. You will then get the difference between your purchase and selling prices and the seller will get his money directly from your buyer. If you need a copy of the assignment phrase and/or assignment contract, let me know.
Thanks for the info Just Passing Thru Newbie and being very punctual.I do have 2 different contracts. The contract I use to purchase from seller with the clause "and or assigns as buyer", and an assignment contract for my buyer.Im very clear on that part, and also understand how the distribution of funds works through the title company.
The ? is, am I taxed on the funds I recieve at the closing table? If so how much?
Hay Passingthru,
check your mail. i wrote you about the assign contract you referred to.
thanks
[addsig]
Yo, snowmans!
I'm in LA, and getting into REI. Trying to line up the proper contracts/paperwork for doing subject to, short sales, etc. I was reading this post and was wondering how you arrived at the forms you use? Do you mind sharing with me the forms you use, or at least pointing me in the direction I should head to obtain same? I will definitely be contacting and interviewing RE lawyer(s) to evaluate what I end up using before I get involved.
Also, let me know if you are interested in partnering on any deals, either LA, SD, or anywhere in between. Do you do any rehabs?
Thanks!
Kevin
k e v i n @ v b r e a l t y . n e t
[ Edited by kevbostic on Date 08/26/2003 ]