First off, I wouldn’t wait until closing to get paid. In Fact you don’t even need to go to the closing if you can find an all cash buyer. You are assiging YOUR contract to them. So you don’t get stuck with it, find an end buyer to pay you your assignment fee ASAP, once they pay you the fee, you are done with the deal and they go to the closing. Once they pay for the contract they are now binded by the contract to perform on it.
Second, REO’s You are going to have a difficult time assgining a REO property. I looked into this myself and an experienced investor told me to make an offer in the form of a land trust. If they accpet it great. This is where you may need to do some negotiating. If it is a REO negotiate all you can about how expensive it is for a bank to keep holding on to a proterty. Always make an offer…see what they will accept.
Working with a Realtor. As long as a deal is accepted knowing you are going to assign a contract…go for it. I have never done one with a Realtor. All they care about is getting paid. Make sure you have an end buyer set up if you are dealing with a Realtor. If not expect phone calls galore. Build a buyer’s list!!!
Ahhh, the typical sterotype. “All Realtors care about is being paid.”
That said I guess investors have some high and noble walk in life?
Reality. Many real estate people care about their clients and have found that there is more to life than just the bottom line. Just as not all investors are mercenaries waiting to rip off old people, widows and orphans.
Now having asked for a little less in stereotyping let me add that as a Realtor (never guessed that) and an investor the process of assigning really depends on the transaction not whether it is listed or not. As stated, if the assignment verbage is acceptable to the seller it does not matter.
The exception is the REO/bank owned property. Very few allow assignments any more. Too many failed transactions where the buyer would pull out at the last minute because they couldn’t find a buyer to wholesale to.
Land trusts and other games are very dangerous here because part of these contracts state specifically that no assignment will take place. To use cutesy language and doing it anyway is called fraud.
Instead one can just do back to back closings with an REO. The bank only cares that you buy the property. If you only own it for 5 minutes, no problem.
I didn’t mean to offend you in any way. As a mortgage broker I’ve seen a lot of Realtor’s blame everything on us and it gets a little out of control. I work with some fantastic Realtor’s whom I would have no problem referring my client’s too. I’m pretty much done with the mortgage game and going to be investing full time. It seems sometimes the Realtor’s whom I’ve met at closing only seem to care about getting paid by the way they act.
With regards to REO’s, I know banks are getting tight with their policies and how they deal with investors…assignments. I’m lining up private money lenders to fund my REO properties and short sales. Concentrating on whoelsaling for now. Keep in touch
Just giving you a little crap. There are good and bad in all of the groups mentioned. Unfortunately it is the bad minority that gets all the attention whether real estate brokers, mortgage officers or investors. And we constantly see new regulations and statutes to prove it.
One thought for all here and that is that a knowledgeable real estate broker/agent can be worth his/her weight in gold when it comes to investing. Note I said “knowledgeable”.
Most real estate agents don’t know much about investing, short sales, foreclosures, etc. Only about 1 in 100 work in this field on a regular basis.
But if you can find one and make them part of your team…
Same holds true in the mortgage industry. There are a lot of people in my industry who don’t have a clue of what is going on. Granted a lot of them are new, but nobody teaches them or they tell clients one thing and don’t follow through with it. It gets frustrating to hear all the time becuase as you propose something to your client they always question it because they heard it differently and wrong from someone who doesn’t know what thy are doing. (I’m taking a breath)
I got into the mortgage industry 4 years ago to learn everything I could about the world of real estate to start an investing business in real estate. With regards to regulations, all Illinois mortgage brokers, not bankers, but brokers must have a criminal back ground check, fingerprinted, and pass the state test to originate in the state. When I took the test a year ago, I passed it the first time. I heard people who have been in the business 10-15 years failing it 3,4, up to 7 times before passing it.
There is a Realtor whom I met last December for a closing I had and she was fantastic. I talked to her yesterday, to get her involved in my investing business. She is great.
Well time to get some work done. I’ll talk to you soon.