Hello Everyone I am a Loan officer by trade and I specialize in Investor subprime loans, jumbo loans and conventional. I deal with several investors on a daily basis and happen to taken an interest in the world of real estate investing…
so in that regards I am newbie looking to wholesale/birddog in the Atlanta, Ga market, I already have access to tons of wholesale deals/contacts however I need to know the mechanics of how this works… if any of you are in the atlanta area, looking to rehab flip, I have some great deals… however some of you novices will have to explain the following to me below
I have the following questions when it comes to birddogging
what is the mimimum amount of earnest money I should draw up on the purchase agreement?
when I assign the contract, how exactly do i get paid(will it be on the borrorwers hud-1 as an assignment fee?) does the title company handle this? or is it paid outside of closing by borrower and if it is handled this way… how is payment secured?
should I let the seller know that I am making an assignment fee?
Last but not least, will their be an issue with lenders on any title problems/seasoning etc… or do I even go on title at all while assiging contract?
Should birddogging be only done with investor to investor deals or could one shop the deals thru retail buyers as well?
Should one who is purchasing wholesale properties be using a hard money lender/cash or would conventional and subprime lenders allow me to assign contract on the end-buyers.
if the end buyer backs out of the deal, before the 45 day fund deadline, do I loose the earnest money and/or are they any legal ramifications?
Last but not least, is every title/escrow company able to do these type of deals or double closings… or can only certain ones do it…
8)
Ok here goes, I’ll answer the best I can from my experience.
I use 1k for EM for deals under 2k and 5k for no brainer purchases all “due at closing”
2.Assignment fee paid by assignee before closing , outside of tile co, My Title Co does this for me as a favor though. You take cash or check from assignee, he performs to the contract you executed.
3.I let the seller know I am assigning the contract, some people don’t. Your fee is non of their business.
4.Yes there could be seasoning problems with your sellers property but you are a Mort Broker, check their loan. No you don’t go on Title but you do fill out an Assignment of contract form with your buyer when you sell/assign him the contract.
Bird dogging, You are supplying a service to all who want to purchase a good deal. You will provide this service to people with MONEY regardless of title.
6.To end Users. You are not buying property to assign, no money required. You are controlling property contractually, then selling the contract for an assignment fee. Honesty and a clean shirt required, not money.
7.End Buyer.You do not put earnest money in closing for an assignment , If you did your buyer pays you the earnest money and the assignment fee when you sell him the contract. It is his responsibility to close on the property according to the contract he purchased from you. I preqaulify before I assign, no problems so far…
8.Some sellers do not allow double close such as HUD or some builders.As a Mort Broker I know you know all the title companies near you and will be calling your favorite ones to ask them about double closings. Usually…they don’t mind, it is the seller that meay complain and not allow. When I do a double close I inform all parties involved at the out set…then no problem. Assignments are not double closes. When you contracted to controll the property you filled in "yourname +and/or assigns"so the guy who bought your contract, the one you “assigned” it to is already on the contract !
Hope this helps, Darin
Ok, Yes I am learning to spell and on answer # 1 I use 1 thousand dollars for transactions 200 thousand or less but it all depends on how good the deals is…
Thanks for your time, Darin