I want to make sure I understand the assignment of contract steps - if anyone knows please respond
- Get the home under contract - execute a contract signed by both me and the seller
- Complete an assignment of contract between me and the end buyer wholesale investor
- In the assignment of contract between me and the wholesale buyer include the (purchase price of original contract, closing costs, earnest deposit amount, my assignment fee, back taxes if applicable, title insurance fee, and closing date)
- Contact the title company to provide them with the paperwork which includes: (original contract with me and the seller and the assignment contract with me and the wholesale buyer)
- I schedule the closing with the wholesale buyer investor in the morning so he can fund the deal, then I close with the seller in the afternoon.
Does the wholesale buyer and I need to sign the original purchase and sale agreement with the seller?
Does anyone have an (example) invoice I can use to send to title company?
Does anyone know any title companies in MD familiar with assignments they could refer to me?
Does anyone know how I open and escrow acct with the title company and what I should include on the invoice?
Does anyone know any websites I can use to send to other investors looking to buy?
Is the earnest deposit being deducted from the purchase price at closing? For example the purchase price is $59K, earnest deposit is $5K, and assignment fee is $10K. So is the balance at closing $54K? Or am I deducting the deposit and assignment fee??? :help
Does the wholesale buyer also pay for the title insurance?
Does the wholesale buyer pay the following fees: (closing costs, assignment fees, earnest deposit, title insurance, back taxes,
Purchase Price: $59K
Assignment Fee: $10K
Total Fees: $69K
Earnest Deposit: $5K
Please respond to this post or send me an email directly, you can also call me
Wow, It’s interesting how you turned a simple thing into a confuse fest. I’m a newbie but happy to say I’m closing on my 14th deal in a few days. My latest deal I had my sellers sign my simple 2 page contract that gives me 45 days to bring in a cash partner. I gave them $5 earnest deposit.
My buyer wanted to meet me at the Title company. I told him, no need, I will just email the contracts to the Title company, you go there and sign my assignment of contract and give the title company $1,000 to get the thing going. Most of the time I never see the house or meet the sellers or buyers. And the Title company mails me my check. I have the buyer pay all closing costs. But I might pay half if it meant losing the deal.
I haven’t been to any closings. This time I may drive the 30 minutes to pick up my check cuz it’s 10 frikin thousand dollars.
This is what works for me.
Sellers sign Purchase Agreement.
$5-$10 Earnest deposit.
Buyer signs the Assignment of Contract, starts escrow and pays all closing costs.
Do it again.
Keep it Simple. (Kis)
I would second the keep it simple motto as well…
In the beginning, it might seem overwhelming to keep track of so many things at once… In part, it is do to information overload and taking info from every and any source… While having as much information as possible is sometimes beneficial, unfortunately, a lot of times is tends to paralyze us and confuse the process…
i’ll do my best to answer some of your questions… And again, it’s a very simple process…
Your buyer does NOT sign the purchase agreement with the seller… You do…
the assignement is the one signed between your buyer and yourself…
Invoice for what?
You do not open any scrow accounts… the title company will do that… they are getting pay to settle all that… and again what invoice?
use Postlets.com… easy and free to use…
I’ll assume the 5k is hypothetical… In the real world go from $10 to $500
My buyers always put the earnest deposit… Please get the numbers right!… if purchase price is $59k… earnest deposit is $5k and your fee is $10k the balance is $64k plus closing costs…
the buyer pays for everything… Unless you are double closing in which case you have to pay closing costs…
Keep asking questions and most importantly go out and find a deal!
This process is new to me and yes I’m overloaded with information… so I’m trying to ask as many questions as possible to ensure I understand the process. So what am I sending the title company so they know how much money to send me at closing? Is there a closing form anyone could share?
Lastly, so I’m clear on the process:
Purchase Price $59K
Earnest Deposit $5K
Assignment Fee $10K
The balance of $64 would be do at closing by the buyer based on the above amounts - correct
- Do most sellers accept $10-$100 earnest deposit?
- The buyer is paying the earnest deposit and all closing fees? correct
- What if there are back taxes and or liens on the property. Does the buyer pay that also?
- The earnest deposit is being deducted from the purchase price? correct - So the $59K purchase and $10K assignment fee would be $69K minus $5K earnest deposit
- When do I tell the seller that someone else will be closing with them not me?
to the title company you send the contract and the assignment…
Again, the buyer pays all closings costs…
any liens or back taxes usually the seller pays at closing… Although, this is all negotiated with the seller…
no need to tell the seller you are not the one closing… Why would you want to do that?