Need Some Advice On REO And Assigning...
We are closing on an REO at the end of the month. I'm wondering if we can assign the deal to another investor make some quick money. Wouldn't the contract we signed have to say it is assignable, or better yet, say that it isn't asignable?
Would these numbers make for a good assignments?
asking price $65k
offered accepted at $60k
appraised at 87k
comps for area are 90-110k
If I assign this deal, what should I ask for it from assignment?
Thanks guys
Quinn
To Quinn:
If you haven't already opened up escrow yet, tell your escrow company that you
you want to open up escrow as an "assignment". If you have already opened up escrow, call your escrow officer up and have her draw up an amendment stating you have the right to assign the escrow. Then tell the person you are purchasing the property from you are going to close it in your partners name for tax reasons. 90% of the time they wont care as long as it closes. If they do not want to let you
assign it, then close it either all cash or an assumable hard-money loan. Then grant deed it to the person you are flipping it to and have them reimburse the money you put up or assume the hard-money loan. In terms of what you should charge, I would ask $5k -$10k
depending on fix-up. You want to leave at least 10K in the deal for whoever you
flip it to. I would not buy a wholesale
deal unless there was at least $30k split between what the I am buying the house for and what it is worth. Good Luck
JeffCa