I made an offer on a property belonging to the bank through the RE agent. I already have a qualified buyer (end-buyer) in place to flip to or assign or wholesale too. Which ever is the correct term.
I’m trying to figure out what the process is in “assigning” the rights to buy this property to the end buyer? Do I have my end buyer make me an offer, since I know have the property under contract w/the bank? Does anyone have an assignment form? And at what point do assign. I’m confused with the mechanics of how this works.
first of for the right to assign the contract you must first where it says buyer(s) it has your name and nothing else then you cant assign it if it says "your name and/or assigns then you probably can assign it but with REOs you have to check the fine print and see if they have an addendum to the contract stating that you cant assign it witch in that case you will have to do a double close
In order to assign a contract a 1 page hand written contract is all it takes (check with your lawyer in your state) it has to say I blank am selling the rights to buy the subject property to blank2 for the assignment fee of ??? Due and payable at the time of sale
tip: always make your fee do and payable at time of sale not time of closing because if they never close you wont get paid my way it don’t matter what happens you still get paid
Reo houses are not assignable. There are techniques to get around the issue such as land trusts and selling llc.
The easiest way if your end buyer is a cash buyer is to add the buyer onto your contract with the bank in exchange for your fee paid up front or at closing. At the closing you do a quit claim deed and take yourself off the title. After you have received your fee of course.
Assignment of contract forms can be found on the net.
Wow, you jumped right in the business! I commend you for
taking action, but please, get educated, with a basic education
before you get too far along in a transaction like this…
Things can go really sour for you and all parties…
However, now that your in the middle of the transaction, you’ll
want to get a contract between you and the buyer to insure
that you have a “real” buyer…
How far along are you in the process now? How many days do
you have to close?
Man this is a prime example on what not to do in real estate investing.
No offense to the OP but going into a deal like this without knowing the fundamentals is like diving off a cliff without knowing how deep the water is below.
Always educate yourself before jumping into a deal.
If the seller have accepted your offer and you have a contract with the seller for the purchase of their property and you have a buyer that is ready to purchase the property, you need to get a contract with your end buyer to purchase @ a higher amount and that my friend is where you make your money on your first wholesale deal.
It all depends on how good the deal is… If you got the offer accepted well below market value you can request between 7500 to 10000 for the fee. Also I have an a copy of an assignment contract for you if you want it send me a fax number but I should tell you this. With REO’s that is not necessary all you need to do is have close on the same day with both seller and buyer… End buyer first and then the REO last… Make sure your title company does this. Its called double closing…