I’m in the process of getting my ducks in a row before searching for wholesaleable houses. When I find one, I’d like to assign it to local investors. Regarding the purch agreement, do I fill it out completely (incl the and/or assigns) along with the assign addendum? It seems to me that if I fill it all out and the investor I find doesn’t like what I’ve agreed to as stated on the contract, then maybe I shouldn’t have filled parts of it out to begin with?? Or maybe he can renegotiate with the seller without me?
Most contracts are assignable without the and or assigns. The only problem I have ever seen where this was not the case was in Federal Bankruptcy Court where the Judge would not let the debtors estate assign a sales contract to a new buyer when the original buyer washed out. This would be an assignment in reverse of what you are trying to do as the seller was assigning the contract instead of the buyer.
You do not want to leave blanks in the contract. If there is something that does not pertain to your deal then xxx it out or write NA but do not leave a lot of blanks.
You do not add an assignment addendum to the contract until you find a buyer. You then both sign a new agreement assigning the contract as written to the buyer. The new buyer can then negotiate with the seller if there is a problem on the contract.
Thanks, that makes sense. Now, regarding fees, if I’ve located a house that can be purchased for say, $300k, then rehabbed by buyer and sold for $400k, how much would my assignment fee typically be? (note: california pricing)
depends on the repair cost. Lets say you get under contract for 300k and its needs 20k in repairs and the ARV is 400k. Also you have to think about closing costs and the rehab buyer financing costs. here what it may look like
ARV 400k
Repairs 20k
Purchase 300k
Closing 900
Buyers interest on loan for 2months 2200
leaves 76k equity. I would wholesale it for at least 15k. I have excel rehab analysis. if you want i can email it to you
Thanks Indiana and Tedjr, your analyses give me a basis from which to go foward. It would be great to see your excel sheet on this Indiana. Please refer to my profile