Newbie, Where Do I Begin? Looking To Wholesale Or Take Assignments
I am brand new here, trying to learn how to collect an assignment fee in Real estate, I know you can make money doing it, but I very confused on the proccess.
Please explain the proccess. How do you find the property to start? I know I would find a seller, and then an investor or realator to purchace the property, how do you find the realator or investor to purchase? I dont get where I fit in,(how do I get paid) or where the assignment is written or whatever.
How do I find the sellers, and who is responsible for finding the buyer.
Any and all info. is greatly appreciated, just want to know where to begin
Thank you
Susan
Once you find a property and get it under contract, put an ad in the paper about it. You are basically selling the rights to the contract. You want to make a few thousand or more on the assignment which the person you contact would pay you, then be responsible for getting the financing for the actual deal. Something to keep in mind is if they don't have the few thousand cash to pay you, finance it. Let them make payments with a high interest rate.
[addsig]
So, tell me if I have this right, I am finding property for sale, and then advertising it, as if I was the seller? If and when I get a buyer, I am then taking the assignment?
Do I act as the buyer as I am seeking a buyer, investor, realator to purchase? Do I need to use any of my credit or anything like that?
Sorrry for all the ?'s just trying to get this straight, it just seems to easy, I feel I must be missing some steps here.
Thank you very much
Susan
So, tell me if I have this right, I am finding property for sale, and then advertising it, as if I was the seller? If and when I get a buyer, I am then taking the assignment?
Do I act as the buyer as I am seeking a buyer, investor, realator to purchase? Do I need to use any of my credit or anything like that?
Sorrry for all the ?'s just trying to get this straight, it just seems to easy, I feel I must be missing some steps here.
Thank you very much
Susan
So, tell me if I have this right, I am finding property for sale, and then advertising it, as if I was the seller? If and when I get a buyer, I am then taking the assignment?
Do I act as the buyer as I am seeking a buyer, investor, realator to purchase? Do I need to use any of my credit or anything like that?
Sorrry for all the ?'s just trying to get this straight, it just seems to easy, I feel I must be missing some steps here.
Thank you very much
Susan
Quote:
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On 2004-12-15 07:03, susangrms wrote:
So, tell me if I have this right, I am finding property for sale, and then advertising it, as if I was the seller? If and when I get a buyer, I am then taking the assignment?
Do I act as the buyer as I am seeking a buyer, investor, realator to purchase? Do I need to use any of my credit or anything like that?
Sorrry for all the ?'s just trying to get this straight, it just seems to easy, I feel I must be missing some steps here.
Thank you very much
Susan
Susan:
As Ray said:
1. Find a house for sale, focusing on a seller who is motivated to sell (divorce, job transfer, needs out, etc.) so you can negotiate a below-market price.
2. Sign a contract with that seller for your negotiated low price, being sure to add "and/or assigns" to the line that has your name as the buyer (this will allow you to assign this contract to someone else).
3. Advertise the house, especially to investors. Go to your local RE investment club meeting and stand up and tell about your deal, make flyers/handouts, etc. Advertise in the newspaper.
You are looking for someone who will take over the contract you signed with your seller, and pay you for the right to do that (an "assignment fee"
In order for this to be attractive to an investor, the numbers have to work out, i.e., your deal with the seller must have enough margin in it so your investor/buyer can make money when they fix it/rent it/sell it themselves and still pay you the assignment fee.
4. Your investor/buyer will take the contract over from there and buy the house from the seller directly. The "and/or assigns" language allows them to close for you, as you have assigned the contract to them.
It's advisable to always disclose what you are doing to your seller--if everyone is up front about what's going on, the deal is more likely to go through cleanly.
If you are afraid you cannot find a buyer and will get stuck with the property, you'll probably get 2 pieces of advice here:
1. Add an out clause to your contract, something to the effect of "specified party approval" where you give some time period (15 days, etc.) for you to get a "partner's" approval. If you can't get the approval (meaning you couldn't find a buyer), you can exit the contract.
2. "Don't do the deal if you're not prepared to close on it" I've heard this one mentioned a lot here, as the posters feel that it is not professional to string along a seller in trouble.
Andy
Thank you very much for all the info., very helpful. I have just one more question, is there such a thing as an generic style contract, or should I call an attorney, or is there any where that I could get one?
Thank a million
Susan
Thank you very much for all the info., very helpful. I have just one more question, is there such a thing as an generic style contract, or should I call an attorney, or is there any where that I could get one?
Thank a million
Susan