Assignee backs out?

What happens if my assignee backs out or is otherwise unable to close?

I understand that I may need a plan B, but what would that be?

Thanks much.

In My opinion you should immediately look for another investor and Black ball that investor who backed out. I would never use him again…time is of the essence and there’s no time for dealing with investors who can’t come through. Call all the investors that have ads in the paper or run an ad. You should find an investor for your deal. You should always have 3 or 4 solid investors in your contact list that follow through. 8)

That is why you should collect at least 50% of your fee upfront and assist them in getting financing.

On my wholesale deals, I collect me fee, assign, and have financing already lined up for them with either my private guy, or hard-money. I also make a point or two on the back end from the lender for the referral.

If you try to line up financing for your deals as well, you will have wholesale buyers lined up at your doorstep!

Best Riches,
Jeff Adam

If plan A is to assign to another investor (or to a back up investor(s) if the first one fails), then plan B is to close in your own name and resell later.

Whether you rehab to sell retail, or sell as a fixer is your choice. Try to never enter a deal you can not close. Protect your reputation in the business.

Jeff hit it right the nail right on the head. However I have never collected a ass. fee up front. Unless the guy had a supber reason for backing out, he would be on my blackball list as well, and I usally preface an assingment with the fact that I had one guy back out and I emailed my 150 list of investors about what he did. Its only slander if its untrue.

yeah backing out does not fly here at all with me, nor shold it with you, happens once, guess what is a trend then? Also he is in control and you are not, with your business and not cool.

have fun

Start over finding another buyer. If you are running out of time to close then ask your seller for an extension. If it’s just a matter of a few weeks they probably won’t care. They just want to get rid of the property.

Do you tell them verbally that u collect 50% upfront and if they agree, they can proceed ?
How do you establish relationship with hard money lender if u are new in this field ?

go get another assignee QUICK

the first thing you shouldnt do is buy this property under your name. that is the number one rule.

second go look for another buyer(asignee)

hopefully you didnt give they seller a huge consideration payment. if the time comes up and you have n ot assigned the contract then you have no risk invested.

when you assign a contract you dont ask for 50% upfront you ASK! for 100% upfront when the assignmentr of contract is being signed.

once you assign the contract and the asignee cannot follow through then you have him assign you the conmtract back for 10.00, and no he does not get his assignment fee back.

I wonder why would seller wants to go through an investor who assign contract besides saving cost.

When you assign property, ask for a 2k non refundable earnest money deposit, in the form of a cashiers check only make payable to the title company.

and yes its always good to have several rehabbers you can assign to, but for awhile its best to have a guy or gal who you can work with instill your trust in and can close again and again, but they need to be honest and easy to work with. those i found are critical factors.