So I just got done talking to a buyer who is ready to sell this property and I talked him down to 64k. Im pretty nervous since this will be my first whole sale deal. I was wondering if anyone could direct me to where I can download a purchase and sale agreement and a assignment of contract. I’ve been self educating pretty hard on this REI stuff but I have a problem to where I think I’m screwed. I dont have a title company that I need to close on this deal, I have access to a car but its limited. Should I find and end buyer first and ask to use his title company? Not sure about this one. Any help would be great.
I suggest you order the book, Real Estate Profits on Steroids from Amazon,
you can buy it used for a few buks and has the contracts and assignment of contract inside.
Email me if you need any help.
Just write, “et al” after your name on the purchase and sale agreement between you and the seller, and it automatically becomes assignable. Don’t complicate things further.
To get paid:
Tell your buyer that you want a non-refundable assignment fee of “x” dollars, paid outside of escrow, as a condition of assigning the PA to him and opening escrow.
Always, always insist on this. You at least need this as “deposit insurance” in the event the buyer doesn’t perform and you LOSE the earnest/binder deposit you paid to open escrow in the first place.
Whether you can get the whole assignment fee up front, or not, depends on how big it is, and how the buyer is intending to finance the transaction.
If all the monies are coming from a 3rd party, then you’ll have to invoice escrow for the balance owed to you.
We always want $2,000 as a non-refundable deposit regardless of how much more we’re getting. If the buyer doesn’t have $2,000, he’s not gonna have anything else either. Forget that buyer.
Meantime, if the fee is huge, you’re better off opening escrow with the seller, and then opening a second escrow with the buyer, and invoicing the second escrow for the balance owed to you.
If the fee is not too big, then simply open escrow with the seller, assign the contract to you buyer at face value of the contract, collect your assignment fee outside of escrow, and walk away, allowing the original seller and new buyer to close on the deal between themselves.
If the buyer fails to perform in either of these scenarios, you should have already received enough money to cover the lost earnest/binder deposit you paid to open escrow.
If not… It will suck to be you.
You should personally go down to some of the local title companies and explain that you want to do a double close. Have a sample of your purchase agreement to show them. If they do not know what a double close is or are reluctant to handle it, then you will want to find another title company to handle the close. Do not just wait to use the buyer’s title company because not all are willing to work with wholesalers.