Hello Fellow Investors!
I have been thinking about investing by Assignment of Contract.
I have a couple of investment properties that I have control over now but am kinda confused about using the Assignment of Contract.
My question is, How will I be protected when it comes to me receiving my part at the end of closing.
I have heard of situations before where the initial buyer got cut out of the deal when it closed.
Is there something that we as investors can do to insure that we get our part when the deal closes? There are a lot of shady people out here that will try to cut you out.
I just want to make sure I have everything in order before I start going in this direction.
Any advise would be greatly appreciated.
You and your buyer sign an assignment of contract agreement, which basically states that you are assigning your interests in x contract to your buyer for x amount of dollars. You send the assignment agreement along with the original purchase agreement to the title company, and then show up at closing where the title company will issue you a check.
If you want to make sure no one goes around you once you get a property under contract, you can always record your contract.
I like the record part. That makes me feel much more comfortable.
There are just to many shady individuals in my neck of the woods.LOL
Thanks a bunch Steph!
When I assign a contract I send the assignment contract to the investor they sign it and send my money via wire transfer or over night a certified check prior to me sending the purchase contract.
That sounds so much easier. Do you use a lot of out of town investors? or do you show the house to them and then they decide to purchase the property?
So many questions!!!
or Do you post an ad in your local newspaper advertising the property.
The investor overnights you your assignment fee before closing? And without seeing the contract?
I’m pretty sure my buyers would tell me to take a hike if I tried to do it that way.