Is anybody familiar with assignmet of contracts? How do they work?
This has been answered a lot in the wholesaling forum above. Herbster
this is so simple its retarded that people still ask this question…lol
ok here ya go:
- you have a contract
- you get a fee
- you assign the contract with a little 1 page document saying: I here by assign contract to mr jo blow for a fee of $xxx.xx
- they pay you your fee then or at closing or both.
peace of cake… simple deal…
You look more retarted for answering the question nice and clean matshingdo001.
I know I can be retarded… but on my good days I ROCK!!!..lol…
The Problem with all the whole sale instructional media, course, seminars, etc…
Is they dont teach the fundimental part / Nuts & Bolts of the deal. Alot of ballonee is put into it, but its realy a simple deal.
Its just like being a consultant you are being paid for your service, and thats pretty much it…
Find the deal, set it up, let someone buy it or do it and charge them a fee…
I really love the whole sale biz.
I whole sale alot of lease options now-a-days… And consult as a turn around specialist for companies with large multi-units.
whats mostly your biz right now???
My biz is wholesaling as of now. I am learning short sales from my mentors. I am doing my first assignment tonight (hopefully). Hey do I need a title company or attorney to complete an assignment? I bet I sound retarted again, starting somewhere though.
Yes, you will need a title co or attorney to close the deal.
If there is a local REIA in your area, you might want to attend and get a referral from someone there. Or, if your mentors are local, ask them for a referral.
Steph :cool
How many contracts do I need for a double close?
By the way thanks stephi 
For a double close, you will have 2 purchase and sale contracts- one when you are buying- between you and the seller, and then one when you are selling- between you and your end buyer.
If you are doing an assignment (as opposed to a double close), you will have a purchase and sale contract between you and the seller, and then an assignment between you and your end buyer.
Make sense?
Steph,
Does it all have to happen in the same day? Also, the profit you make on this is between what you sold minus how much you bougt the property, right?
Assigning contracts work best when assigning to other investors. End users are having a hard time getting financing.
Thomas
Yes, a double close happens on the same day, and yes, your profit is the difference between what you bought for and what you sold for, minus closing costs.
Steph :cool
Hey Steph,
I think the Newbie was asking;
“do I need a title company or attorney to complete an assignment?”
I think he means “completing” the assignment Not closing the deal… I could be wrong???
If you are not involved in closing the deal you do Not need anyone else involved, Just get the fee and happy trails to everyone. How-ever if you are getting paid on closing, it would be better to do as Steph sugested.
Who is your mentor for short sales?
Hey Steph, whats the deal with my final lenders not approving my final buyers for their loans, on short sale flips, you think it makes a difference that i use a trust or an LLC? any suggestions?
Invest, I’ll take a stab at it. Since you gave no numbers, lets assume you aquired a property for 50K, You attempt to close to your buyer for 100K, Bank says where did the extra 50 come from? They want proof you put close to that in it to justify the price difference. Lenders are getting really picky now days. If it were only a 10K mark-up they would probably go for it. Herbster
hey thanks so you think either a smaller spread or have invoices for completed rehab work should help out.
It might be the trust, a lot of lenders frown on using a trust. Second, did you disclose the entire transaction with the end buyers lender? That is probably the #1 reason short sale’s B to C closings fall apart. Disclosure is the key!