I have a property under contract I am considering assigning. This is my first property and need a little guidance on how to do this. Would I sell the contract or do a double closing. What is the best method? Any input would be greatly appreciated. Also, I am purchasing this property with realtor representing me and would not want her cut out.
The answer is based on the amount of profit you want to make on the flip. To make $2 to $3,000 on the flip just assign the contract and get the buyer to pay your earnest money back to you too. Any thing over $4 to $5,000 you probably will want do a double closing and have the buyer put up earnest money and another em contract. This is based on some experience and some other posts I have seen here and other networks. Hope this helps a bit. Let me know the details of the property and I may be interested myself.
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
I agree with Ted, but with an agent involved you are going to have a chunk taken out. If they are representing you as a buyer’s agent you may be obligated to pay them 3% (depending on your arrangement). If they just found the deal and passed it on, I would be more inclined to pay them a finder’s fee (Bird dog fee). I recommend assigning, because if you do it correctly with your contract and disclosures, you collect your deposit up front and start looking for the next deal. When closing comes you collect a nice amount and everybody wins! :dance :dance2 :dance
Win-Win Investing to you, Shawn
I am still looking for more properties to buy. Send me some details of the property. Maybe we can help each other out. Kathy Mersiovsky
Newbie Question… where do you put the phraze ‘and/or assigns’ on the contract? (I am using Ron Legands standard contracts, unless you have a better suggestion for texas?)
According to the Ron Legrand course volume II For Sale By Owner. You should not put “and or assigns.” If the contract does not communicate the contract can not be assigned then it is. His contract does not mention not assignable. You would use his Assignment of Contract for Purchase and Sale form. (located in Volume II)
Thanks pmcig, I will take a look at that section. According to Ron Legrand somewhere else in the course and in the tape set ‘cash flow generator’, all you need to do is to add ‘and/or assigns’ after your name in the correct place. This is confusing, I am hoping to put something under contract in the next few days and I want to assign it to another very soon afterwards.
do you or anyone have actual experience on this you could share?
I am not sure where you put it on Legrands as I don’t have his course. On the TREC You put it at the top of the first page where you put in your name as the Buyer, You just put Your Name and/or assigns.
You DO NOT want to put the words “and or assigns” anywhere on your contract.
Unless there is a specific clause in the contract stating the contract is NOT assignable then the contract IS assignable.
You’ll know if such clause exists. The contract will say “this contract is not assignable.” If it doesn’t say that then you can assign it to any person or entity you want.
Using the words “and or assigns” will throw up a red flag that you’re a newbie and don’t know what you’re doing. Most banks and the VA won’t accept a contract with those words added.
where is this property you want to assign send me info
also make sure your seller knows your wanting to assign and its on you and the sellers contract and then you get a assignment contract from the net or a attorney.
I disagree with the double closing just in the assignment contract make the assignee pay you what you paid for earnest money and everything else stays the same as your contract .
I’ve done these before and trust me any less than 5000.00 dollars is not worth it but thats just me.
good luck fellow Investor. :dance2