Assign Back to Seller Not Buyer

General Real Estate Investing
1

Hi all,

My first time posting here. Seems like a really lively forum so I am glad to be here.

Just wanted to see if anyone here has had any training or experience with the below technique:

  1. Investor signs a L/O deal with seller with a Cooperation L/O agreement
  2. Investor find Tenant/Buyer and sign L/O deal with tenant also.
  3. Investor assign lease back to seller for a fee and this fee comes from the money that tenant paid seller.

So instead of assign to buyer you get an assignment fee or release fee from the seller. This way your fee will be on the seller side of the hud-1 statement instead of the tenant/buyer so that there is not problems when tenant tries to get a loan and cash out the seller. is the above the right steps? Anyone has any steps, advice or tips for this?

Thanks
Lonnie

2

You’re complicating what should be a very easy process. Why add unnecessary steps to a process that is the height of simplicity? A Cooperative Assignment, at least the way I was taught and still do them, is quick and safe. Secure the deal with the homeowner, find the t/b, assign said deal to t/b, put the assignment fee in your pocket and move on. If it ain’t broke, don’t fix it.

3

Well the reason I ask is because there some talk about FHA having issues credited the option consideration as a down payment because the money/check is not made out to the seller but to a third party that is not on title and is no longer a principle in the transaction.

Any thoughts anyone?

4

It’s not FHA, it’s the loan officer and how they package it to the lender.
8 years and counting, and not an issue yet by sticking to the CA that AJ speaks of.

5

Ok sounds good I will proceed as plan. I just hope that when I find my loan guy that he will be able to do it right.

thanks

6

Find your loan guy now, explain to him what you are doing, and get him on the same page. If he can’t or won’t, shop around for another.

7

Ditto!

8

Hi guys I really appreciate your expertise on the subject matter. I do have one more questions for all that are in the know or have had any experience with this.

Are some lenders still using a refinance to cash out sandwich L/O deals are do the tenants have to get a purchase loan instead?

thanks

9

I suppose every deal is different, but my experience is that the t/b needs to obtain new financing.