I have spent hours reading about how to do the assignments but still I am unclear on how the process works because i have yet to do it. I talked to my attorney today about doing assignments and double closings his response to me was not as i thought it would be. He said with the assignments and double closings sometimes it may be considered as a skip deed… is that true? Will someone please explain the assignment method completely for me? In one post i read all that was needed was purchase contract, deposit, and assignment contract but how do i use these exactly. Do i buy the property from the seller and put it under the assignment contract to let the investor buy from the same seller? If someone were to answer these questions i would be very grateful.
Some states view dual closes or simultaneous closes as the flipper being a pseduo “lender” because you are participating in the financing of the property, if only briefly.
But if you’re planning to simply assign a contract, timing shouldn’t be your issue, provided your purchase agreement doesn’t specifically prohibit assignment. You can assign it before your close date, such that you don’t need to take ownership or arrange for financing.
Matthew, it’s pretty difficult to explain in full detail about assignments. For starters, there are many different types of assignments. So many factors that would influence the answer.
Oh, and no surprise an attorney wasn’t too keen on the idea. Most opt for playing it safe and advise against anything they themselves don’t fully understand. Find an attorney who is also an investor and his response will be quite different, I assure you.
If you’re just starting out, take a look at Cooperative Assignments. They are safe and simple. ADVERTISING DELETED AGAIN - Good luck.
Just tie the property up as if you were going to buy it. Make sure you run your numbers to make sure you leave your end-buyer enough meat on the bone. You can make as much as $5,000-$20,000+ per deal doing assignments. If you don’t know how to wholesale then you need to get to the studying.
An attorney is not what you need first. Or this will be the most expensive training you ever bought… Instead, you should get some specific training.
BTW…your attorney is too cute by half, suggesting that what you’re doing could be considered a ‘skip deed’ (whatever that could possibly represent) Really?
Attorneys are for legally getting done what you need done; not for opinions on creative real estate financing ideas. Find an attorney that actually invests. He’ll understand your objectives better.
On another note… I am still in the beginning stages of wholesaling. I have not done my first deal yet I keep hearing people talk about putting property under contact before putting it up for sale after its up for contract I can assign it to an investor. I get that. What documents specifically do I need to put the property under contract before assigning it to an investor? and if im just assigning will a standard assignment contract do?