I am new to the industry and have been reading and studying for the last 4 months or so. This all sounds awesome and seems to be a very profitable means to an end.
I have a question regarding how B-doggers assign contracts.
Is there a link that I can look at that will show me some examples of how contracts are assigned? Or is there only one way to actually assign a contract? Should a relationship be established at a title company first informing them what you are about to start doing?
I understand the idea of going out a finding the properties that your investors may be interested in, providing comps but when it comes to assigning the contract… That is where it gets a little cloudy. ???
Any help will be great. Just point and I’ll go read.
I’ll be hitting the ground running at the beginning of the new year and I need to have all my ducts in a row. I already have a couple of investors who are willing to work with me and I dont want to screw up waste a bunch of time…
Thanks in advance,
Howdy SD Newbie:
You are correct in getting the title company involved from the start. They want to know what is going on and may even know other investors to sell your property to. They could also have an assignment form. It is not that difficult and you can draw up your own.
It basically says that you hereby assign to buyer your interest in the contract between you and seller dated 1/1/05 in re the property at 123 Hill St and that you have no further obligation to perform and your buyers assumes full responsibility. Get your money or part of it at this point. If your fee is over $4000 to $5000 you may want to do a double closing and keep the fee private from both parties.
Best of luck with your ducks.
Thanks for the info Ted.
I’ll touch basis with the title company i used to close on my personal condo…
Another quick quesiton for you, is the process the same if the seller has a REA? It seems like a person would want to stay away from that since REA’s are looking for that commission… What are your thoughts?
Howdy Sd Newbie:
You are right about REA they do want a commission. The fees they charge are not set by the state or RE commission but by the agents and the Broker for the company and are negotiable. You will see discount Brokers all over the place as well as for sell by owner companies. You can also get a friend to act as you buyers agent and save a % of the fee. If they equity is right there will be room for them and you and your buyer to make money.
Also most banks that are selling REO deals will automatically list the property with an agent so you are stuck with them anyway on REO deals.
thanks a lot and i’ll keep you posted…