I am new to this forum. I am a real estate wholesaler from NYC. I am new to this business. I purchased a course on real estate wholesaling and it was very informative. However it did not answer all the questions I have. I need to know more about the contract and assignment of contract procedure. First I make an offer using a purchase agreement contract and once it is accepted I can then assign my contract to a rehabber, using an assignment of contract document. After I assign the property, do I give the rehabber the original purchase agreement as well?
First, make sure your contract is assignable. Most have that in the terms, but if not you can always add “and/or assigns” next to your name. In general, just so you know, contracts on REO properties are not assignable (lender doesn’t allow it).
Whoever is handling the closing should have the original contract. You then take them the assignment contract so your fee can go on the HUD at closing. The buyer of your contract will need to have a copy of the contract at the point he is agreeing to buy it from you.
Once you have assigned the contract, you are essentially out of the deal except for collecting your fee. When you assign a contract you are essentiallly making the buyer responsible for all contractual obligation from that point forward. You are no longer even part of the deal except for collecting a fee.