I am very new to REI. I have been reading Ron LeGrand and I have a few questions:
*Okay, LeGrand states in his “Cash Flow Generator” audio tapes that we do not need a license since we are always a principal in the deal. We are either the buyer or the seller. Let’s say I use LeGrand’s contract and agree to purchase a house - me or my assigns - and it is assigned to the actual “buyer” how am I principal in this deal?
*Is this a “simultaneous closing”? If not, please explain what is meant by this term.
*Also, do all real-estate transactions have to be closed at a title company? I have heard that some can be completed at “the kitchen table”- what types of deals fall into this category?
Thank you for taking the time to read and respond!
I greatly appreciate the input!
I priniciple in a real estate transaction is either a buyer or a seller. If you, as the buyer, sign a contract, you are a priniciple in that transaction. Even if you assign your position to another individual, you where still the original buyer, and thus, a principle in the transaction.
That is an assignment. A “simultaneous closing” is where you actually buy the property and then immediately sell the property to someone else, usually within hours of each other. I won’t go into details about this, as your state laws, title company or attorney all play a big role in how exactly you can do these legally within your state.
Most real estate transactions have to be done either by a title company or an attorney, depending on your state and it’s real estate laws and customs. As far as the “kitchen table” closings, I wouldn’t even consider worrying about any possiblity of that until you’ve mastered a standard closing.
Snookie:
You are on the right track. Roger answered everything accordingly. To add one more thing, people do close at the kitchen table. You can do this, but you want to make sure you have clear title. I would recommend you purchase a title policy. If you use a company such as First American Title Company, they will issue you a title policy without going thru a formal escrow or closing attorney. I have seen investors get burned at the kitchen table because they were the 3rd person the house was sold to that day! Go figure…
Keep on reading, Ron Legrand is one of best out there. Remember, education is the key in this business! If you educate yourself, you can be very successful!
RE: assignment
Okay, I understand this now. I did not think I would be considereed a buyer in the transaction…more like a middle-man.
As far as the “kitchen table” closing goes…I had never heard of this. I had not considered attempting it but wanted to know what types of deals would (or could) be done this way.
Thanks for the input and advice. I am reading everything I can and your responses to other questions have been very helpful.