Thanks so much for your help. I have a few more questions I would like to ask you and would appreciate it if you could answer them for me.
If I assign a contract to an investor, I need for him/her to fill out an “Assignment of Contract”, right? Where do I get the correct forms?
Do I use a standard real estate purchase contract when I get a deal from the seller? Should it state buyer pays all closing costs? Who pays what?
Isn’t risky for investors to see what you charge to flip them a contract? How much should I charge? When is it good to use a double closing?
How much earnest money should I put to close a deal? Should the investor also give me earnest money when I assign the contract?
Regarding the title, let me see if I understand correctly, if I assign the contract I don’t have to do a title search? It is the investors responsibility and not mine, correct?
If the investor backs out, should I let the seller know? Or is it a mistake to let him know I have assigned the contract?
If I assign a contract to an investor, I need for him/her to fill out an “Assignment of Contract”, right? Where do I get the correct forms?
You can get one at www.legalwiz.com
Do I use a standard real estate purchase contract when I get a deal from the seller? Should it state buyer pays all closing costs? Who pays what?
Isn’t risky for investors to see what you charge to flip them a contract? How much should I charge?
I always tell the investors I flip to what my fee will be. I have nothing to hide. You can charge whatever the deal can handle. As long as its still a good deal for whomever is buying it from you, it shouldn’t matter.
How much earnest money should I put to close a deal? Should the investor also give me earnest money when I assign the contract?
As little as possible. If it’s on MLS you won’t get away with much less than $100. If it’s a bank or Hud you’ll pay $500 minimum. If it’s an individual you can pay $10 if you want. You will get your earnest back at closing.
Regarding the title, let me see if I understand correctly, if I assign the contract I don’t have to do a title search? It is the investors responsibility and not mine, correct?
Correct.
If the investor backs out, should I let the seller know? Or is it a mistake to let him know I have assigned the contract?
I would let them know. They will find out about the flip if they call the title company. Like I said, I have nothing to hide. I let everyone know what’s going on.
I was reading the article you and natalie was discussing about wholesaling. I found it to be very informational and i have been trying to get people to basically answer the same question on various real-estate sites. Now you said for her to you a standard sale contract are should you use a standard 1-4 family resale contract. Also i could not find the assignment form.
So, basically are them the only two forms you need to complete a deal as far as wholesaling are is their additinoal forms. Since, the wholesaler will not be going to the closing, unless it is a double closing, basic once he signs the contract over to the investor, he basically walks away from the deal with his signs contracts and check.
I have not seen Stacy around much so I thought I would try to help. What more do you need except the money. You could show up at the closing just for the heck of it especially if one of the players is a friend. Once you assign the contract and get the cash the deal is basically over for you. The buyer and seller are now head to head to work out the closing. If something happens then it is their fault and not yours.
If you do not get all the money at the signing of the assignment agreement then you will of course want to stay in contact with all parties to make sure it goes smoothly. You will have a small part however. I have been to some closings like this and just set in the corner and cracked jokes and got the balance of the fee at the end.
so basically once you sign over your contract to the investor you dont have to show up to the closing unless the investor only pays you half of the assignment fee up front and want to pay the remaining at closing once he gets his money. Isnt it feasible to get all your assignment money upfront that way you can be off doing other deals while they are they hacking out the closing and other agreements.
Aslo, where can i get copy of a assignment form, i could not pull it up in legalwiz and the trec did not have this forms. if you know of another way i can get some assignment forms i definitely appreciate.
Another question, when you find a wholesale deal, you just basically need to have the title owner to sign a contract of sale with earnest money.
Get all the money you can as fast as you can. The American way. Some investors will not pay until it closes except for the earnest money. A lot of wholesalers are asking non-refundable earnest money as well. Here at least if the buyer does not close the wholesaler will at least break even financially.
The assignment agreement is basically one paragraph I will draw up one and add it to the forms to the left menus. This question has been asked several times. You can also get them at title companies some times.
Thats about it. Get contract signed by all owners and take to closing officer/title company and give them an earnest money check or money order or cash. They will give you a receipt. Keep in mind that both parties have to sign to get a refund. I still have $500 deposited at one title company somewhere from the early 90’s. We could not agree to even split it. I should have clouded the title to the property.