My partner and I have done a few rehab projects in Orlando and are just starting to assign contracts. We have been told so many different things in regards to this by realtors and other investors. We have been told, my two or three different realtors here that assigning contracts is illegal. Yet, everyone is doing it and we have purchased wholesale properties this way. Any comments?
I would certainly talk with a real estate attorney about this issue. However, I assign contracts all the time, in fact just today a major financial institution called me saying they were the high bidder on one of their own properties at the auction and wanted to know if they could assign me the deal. The property is in Florida.
If assigning is not illegal in Florida, take into consideration that how much commision real estate agents get when a property is assigned…zero! That could be driving the negativity toward assigning.
Let me know what you find out, I am interested in gaining in knowing.
Go Get’em!
Ray Rochefort, mgr. mem.
Purpose Investments LLC
Assigning contracts in Florida is not illegal. You heard that from a REA didn’t you? :
Yes… Several and we just wanted to be clear
The correct paperwork has saved my bacon more than once. I had a situation where someone in the deal wanted out…9 months after the fact and turned all my paperwork in to the Attorney General; claiming what I did was illegal and a scam.
The Attorney Generals office completed a 3 months investigation and found my paperwork to be legal, going as far as calling the deal “valid”.
When in doubt, have a real estate attorney look over everything. It’s well worth the money, generally $400 - $500 dollars to have them review the paperwork and make any changes they feel are needed.
Just my two cents.
Go Get’em!
Ray Rochefort, mgr. mem.
Purpose Investments LLC