Assigning A Sub 2 Contract
Here's a good one.
I understand of putting a property under contract, but what about putting a Sub 2 under contract and then assigning that for a fee?
What kind of simple contract can you use or wording can you say to put a property under contract that the seller wants to hand over to you...so you can assign it to another investor for a fee?
Christian "The Solutions Kid" Beebe
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Could you not use a standard pur and sales and put "as assigns"?
Or use an assignment of contract document, I have one if you need it.
LeGrands course
Can someone expound upon this?
I get the normal docs for sub 2:
-sales contract
-sub 2 acknowledgement
-deed
Are you saying all I have to do is sign the sales contract "myname and/or assigns" in order to flip it to another investor?
Hey Chris,
The only thing that I would reconsider is the promise that you made to the seller that the payments on their existing loan would be made. If you assign the contract to another investor or retail buyer, you have just lost control of the transaction. The assignee can stop making payments and the loan would then foreclose against the seller that you bought it from.
Since you where the one to initally make the sub-to agreement with the homeowner, if you get more than one default from your assignee's, your name will be smashed in your city. People talk.
I know that some guru's tell you not to make any promises to the seller that the loan payments will be made, but whether you make the promise or not, guaranteeing that the payments are made is only the right thing to do.
Besides, Subject-to's dont take much (if any) money to complete. Benefit yourself by keeping these deals and collecting big paychecks!
Best of Success!
BAMZ
Im sure you could but it seems to me you must also state that in your contract with the seller seeing that it was you that agreed to take the prop sub2 and be responsible for the payments. I would make sure I used "or assignees" or "nominees". Personally speaking I would be a little leary of someone taking my property sub2 and then flipping it to someone else. Just seems that it might create a problem with the seller saying no because it wouldnt be you being responsible for the payments, if that is what you are leading them to believe. Put yourself in their shoes and go from there. If you are upfront with them and they go for it cool...whatever you do keep it honest and you wont have to keep checking your hind parts for teeth.
JMO
Benny
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