I have a question. I am new to the birddog thing. I was wondering if there was a way I could assign my rights to basically sell real estate that is not mine if I am not a real estate agent?
Yes, that’s what wholesale real estate investors a.k.a. wholesalers do. They find a property and put it under contract. Then they assign their rights to the contract to a rehabber investor for an assignment fee.
Then they assign their rights to the contract to a rehabber investor for an assignment fee.
How does the assignment fee work on paper? Is that going to be listed in a separate contract, something along the lines of … “For X amount of dollars I sign over this contract to John Doe”. Or would your assignment fee be listed in the original contract where you have the assignee name listed?
I’m trying to figure out what I need for some contracts to work some of my first wholesale deals. I was thinking of just paying a lawyer to create me the contracts but I’m not sure what I should be asking for in the contracts specifically?
To sell a house you have to either be a realtor or have a stake in the property (I.E. be on title). A wholesaler will get the house under contract (get on title) and then can sell the property legally.
A birddog does not put houses under contract, they find the houses for wholesalers. The wholesaler then puts the house under contract and pays the birddog a finders fee.
Scostell is right in saying birddogs do not normally get properties under contract. They normally get whatever info the investor requests and then the investor gets it under contract.
As for needing to be on the title for resale, while that is also true… You only need an ownership interest/ equitable interest in the property to be able to legally assign the deal. You do not have to be an agent with this type of interest in the deal.
Normally your purchase agreement should have your name and then and/or assigns after it to be considered assignable.
The assignment form is separate from the purchase agreement and covers the terms of the assignment fee and parties involved.
IMO, I don’t quite see how you could even do this without being a real estate licensee.
You can, however, assign your right to BUY real estate to someone else. Whether your “right to buy” is in the form of a purchase contract or an option to purchase, you can assign (sell) your contract to someone else unless the language of your contract specifically prohibits assignment.
Here is an example of the what you might find on a contract -
- Assignment. Buyer may assign this Contract to any party, including an affiliated entity, without the consent of the Seller. Seller shall not assign its interest in this Contract without the written consent of Buyer.
It’s pretty simple…
If you are referring to real estate wholesaling as assigning real estate then you don’t need to be licensed, you don’t need any interest in the home whatsoever.
You are selling a contract and there is no limit on the amount contracts that you can sell.
When you assign a contract you are never taking a fee for the home, you couldn’t you don’t own any of it. You are simply selling your position on the contract.
Ok. How do you obtain the contracts?
You can find some free contracts and forms here.