Newbie contract question

Hey,
Got a question re: flipping. Got an FSBO. I get a contract to buy: Do I make it out with “my LLC and/or assigns” or “my name and/or assigns?” I will make my offer per ARV minus 20% discount, minus repair estimate, minus my “fee” as I plan to assign the contract to a buyer. How do I assure getting my fee? Do I make a seperate assignment contract with the buyer stating assignment of the contract at the cost of my fee? Thanks for your input.
Peace,
Richard

Howdy Richard:

The part about and or assigns does not to be included. Contracts are assignable unless otherwise specified. Most REO’s. HUD and VA and other sellers will not let you assign the contract. It is up to you if you want to use a LLC or just personally.

You can assign the contract with a one paragraph agreement that will include the fee you are to receive. Give a copy of this to the title company that is handling the first contract and they will make sure you get the money at closing. You may be able to get some of it at the signing of you agreement with the buyer. This is negotiable between the two of you.

LOL

Hey, Ted,
Thanks for the reply. I’m trying to get through with this deal ASAP as I will be leaving town for a week. I thought I would secure the right to purchase then hand it over to a rehabber/investor. I just need a way to make sure I get some dough for structuring the deal, etc. Would a valid contract work? Need it be notarized?
Thanks again.
Peace,
Richard

Howdy Richard:

Just use a standard earnest money contract to get it under contract. No place for notary on the contract. You can assign with an assignment agreement or sign another contract with the buyer and do a double closing. You can get paid at the contract assignment or you may have to wait until the closing. I would try to get at least 50 % upfront and 50% at closing.

Hope this helps some LOL