Assignment contract question

You are correct. I should read more closely next time. :stuck_out_tongue:

Brandon, I really didn’t mean it that way…sorry. I was just expressing my frustration over the way things have changed just in this last year as I have been getting my feet on the ground. Or should I say Trying to. More and more I come to the conclusion that to make serious money in this business you either have to have VERY knowledgable buyers or CASH. And, having re-read your post, you are really offering a nice tid-bit of information there. Going to the forclosure sales to network/start a Buyers list is a great idea.

One thing I am learning in this business is Patience. That is the one thing I did NOT count on…LOL!

3:12 Therefore, as the elect of God, holy and dearly loved, clothe yourselves with a heart of mercy,9 kindness, humility, gentleness, and patience

Brandon, words of wisdom indeed! Thank you, too often I forget who is in charge of this whole thing.

Is the standard contract something I could get somewhere or do I have to make one up? Thanks

To answer your question about where to get a “standard contract” you can get one from your title c ompany. They will also tell you how to fill it out. While the double close method is great for hiding a big profit, if I am making 3-5K, I will assign it instead of double closing for two reasons. 1. I don’t have to pay closing costs when assigning. I realize that closing costs are not much on a cash transaction, but I will usually have to pay for a title policy when selling the house on the second contract to my investor if I doublce close. That can be 500-800 bucks. I prefer to keep that. 2. When you use a double close method, you have a different tax concern. When you double close, you actually own the property, albeit for a few minuts. But, that means I now have capital gains, which means more taxes. If you assign a contract, it is considered ordinary income, so it is more favorable for taxes. You definately don’t want to take my word for it on taxes, though. I barely passed accounting in college. That is just what my CPA told me.
Hope that helps!

Thanks very much. I will do that. :slight_smile:

I usually use the TREC contract here in Texas, the same one that real estate agents are required to use.

http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp