Everyone seems to be asking questions regarding “and or assigns” to the buyers name with the intent of flipping/wholesaleing the property to another investor for an assignment fee…
I am talking to a instructor of mine who happens to do REI on the side… and he thinks that no one will ever sign the contract if it says “and or assigns” because then the deal could be lost and he said if anyone ever did that to him he would keep their downpayment. I live in Florida if anyone could help explain how many they have done and if any one has asked what “and or assigs” means or simply won’t sign or accept due to it. Thanks compsciboi
As I mainly wholesale my contracts, all my contracts say ‘and or assigns’. First of all, I have never had a customer balk at this language (only been doing in a short time) and often times I will even tell the seller that depending on my ‘current inventory situation’, I will either be closing on the contract myself or finding another investor to close on it for me, but the contract will close.
Seems to forestall any objections, since their ultimate goal is to be rid of the property.
P.S. As I said, I am fairly new, but as of yet, I have yet to put more than a $1.00 deposit on a sales contract and your buddy is welcome to keep that if the deal does not close.
I have read NUMEROUS books which advies to put the clause in. Regardless of what happens, either the investor, a partner, so someone has to close on the house, so the homeowner has nothing to worry about.
Its in the best intrest of the homeowner, if you cant close, you will find someone who will. If they are in pre-foreclosure and worried about you backing out, then let them know you cant proceed with the purchase of the home, and let them continue into foreclosure.
When dealing with preforeclosure seller’s, do you have to use an Equity Purchase Contract? And if so, are they assignable?
I have no idea what an Equity Purchase Contract is but I heard it mentioned in passing from another post and I would like to know if this is something that I have to use when wholesaling preforeclosure properties here in California.