Hello All,
I am new here and I really like the idea of locating preforeclosure deals here in Georgia, of course ones that have at least 30% of equity in it but now I am not sure what to do after this point.
I’d prefer not to take ownership of the properties but rather find those “We Buy Houses” signs, call them up, let them know about the property/deal and have them deal with it but give me a fee or commission for finding the preforeclosure and negotiating the sale price.
I am not sure what this method is called and how it is really done. Can anyone shed some light on my idea? Thanks
You are now wholesaling properties and assigning contracts but you must have a written agreement with the “we buy houses now” guys before anything. They might not need your help:)
You are talking about assigning contracts. You want to get the contract on the house and then assign it vs. trying to get a written agreements with all the “we buy houses” investors. The one who has the contract has the control and that’s valuable.
Can one of you please explain how to assign a contract and charge a fee for the assignment?
If I find a deal and want to charge $10k “finder’s fee” to assign it, how would I do it?
The contract has to be assignable, correct? How do you confirm that a contract is assignable?
Isn’t there more costs associated with a double-closing?
An assignment sounds a lot easier, but you would know better.
If I wanted to assign a contract over to someone and increase the price
from $250 to $260 ($10k being my finder’s fee), how would I do that?
To do the assignment, there’s a separate contract that states roughly, “I hereby assign all my obligations to X in consideration for the fee of $20,000,000” or whatever.
The downside is, your assignee X knows how much you’re making.
If you double close, your assignee becomes your purchaser, they have no idea how much you paid, and therefore how much you’re making, and they should carry all the costs.
And I agree with Fadiz, you need to build your buyers list before you start finding houses, the exit strategy’s a lot more difficult than the entry, ask GW
Great question mommymi! I TOO am a somewhat newbie to the game and at the finish line of “analysis paralysis”. :biggrin
I think the questions you and me both want to ask going forward are:
Is it really that simple?
Can you ONLY assign preforeclosure contracts, or can you assign REO (bank-owned) contracts as well?
What is the Earnest Cash amount to go under contract (by law per state)? $1 or $1000?