In regards to bird-dogging… Let’s say…
I have a property that after doing all my due diligence looks to be able to turn a profit for a buyer (rehabber I have lined up). I enter into an option contract with the seller and I contact the buyer that looks to suit the property… When and how does the rehabber acquire the option? In other words how do I pass the option onto the rehabber? And when and how do I physically get my assignment fee?
Thank You
Christopher
Hi Christopher,
First, what you’re really talking about is a real down and dirty wholesale deal! Sounds like you’ve graduated from bird dogging! ;0)
Bird dogging is usually referred to as just finding prospective properties for an investor. (like writing down an address of a boarded up property and handing it off to your investor friend). If you are to pull off what you’re putting on the table in this post, you’d be the real deal!
I suppose you could tie up the property with an option and then assign the buyer’s interest in the option. I know that’s how some wholesalers do it. Once you get that option, you just have a document that in no certain terms describes that you are “assigning your optionor rights to ________” but be sure that your option with the seller allows for you to assign it
In this type of transaction, I typically used an actual purchase agreement with the rights to assign. Just another way to skin this cat…
Good luck!
In certain areas of the country you can use a double escrow closing. Buyer and you in the morning, seller and you in the afternoon. I know, I iknow that sounds backwards. But you need to make sure your exit strategy (and the money) is in the escrow office on the same day the transaction closes.
Geoff