Assignment, contracts, contingencies....help

All contracts will have an inspection clause. Put in a 15 day inspection clause, which will let you get out of the contract if you do not find have an investor. The 15 day inspection period is the time you have to get your buyer lined up. If you do not have your buyer within that 15 day inspection period you can get out of the contract. That is why it is important to have your list of buyers line up.

Shouldn't I have the inspection clause to be longer than 15 day? How exactly do you get out of the contract? On the last day do you just say that the property did not pass my inspection and then walk?

thanks

You don't need a pof letter if its a fsbo, agents and banks require pof letters. I am assuming you have a fsbo deal. You can also put in as a clause with the inspection, partners approval. That will give you another way out of the deal. If its a great deal I dont see a problem moving it.You dont want to go into a deal thinking about getting out of it. If you cant get a buyer then reach out to others who can bring a buyer to the table for a % of your profit.
As far as EM my agent puts in the contracts that its due 10 days after acceptance of offer. By that time you ca n get that from your end buyer so its no money out of your pocket.
good luck
Richie

We always put in our contracts that the EM is payable after the approval of inspection. and yes if you do not have a buyer you have to back out of the deal.
The inspection can be more than 10 days but you may not get it . It doesn't hurt to ask

I always put in my contract that the deal is Subject-to Partners Approval withing 14 days. If I can't find a buyer in that time, then I contact the seller and say, "After my partner did an inspection and ran some numbers we realized that the numbers didn't quite meet our minimum investment requirement." If I think that I might still be able to find a buyer given a little more time, then I add, "However, If you'd agree to extending my due diligence period another 7 days (or 14 days, or however long they will agree to), then I will contact a few of the investors I know to see if I can still close on the property." Sometimes the answer is yes, sometimes no, but it never hurts to ask.

I will remember to write my contracts with EM being payable after approval of inspection. I will make a note of that. Thanks!

Thanks for all the help. Should I do a title search before putting in an offer?

Hey JDubb340,

No need to worry about a title search. That is for the end buyer to worry about unless YOU are going to be the end buyer.

Hi

I currenlty have a few questions about going through with the AWESOME deal.

Ok, my situation is I have a owner that is willing to work with me to get my first deal done and he want to have me take over the note and give him 10.000, this house has 4 apartments in it and have a tenant in it currently, this is a great deal that I do not want to loose, I am going to get the property locked up, tomorrow July 5, 2012, however I do not have any money to give him . How do I go about keeping this awesome deal, can I get the money through Hard Money lenders without having an LLC?

Please give me step by step on how to do this deal.

Your help would be greatly appreciated.

Thanks,

Shelby

Shouldn't I do one anyway to make sure I can assign the contract easily? I can imagine I won't be able to find an end buyer if they do a title search before they sign my contract and find a problem. Would it be better to be safe than sorry in this case?

In an assignment contract, when do I get paid my assignment fee? Is that something I should mention in the contract? Does that happen at closing between the seller and the assignee?

you should receive your assignment of contract fee when you assign your contract. To do otherwise shows that you really aren't being paid an assignment fee but are participating in the purchase as an agent. Think about it in a business sense even though that is not how it is always done. People justify other payment models.

So basically when you send the assignment contract to the assignee you ask for payment before.......what exactly. I'm sorry for the silly questions but this is my first assignment and to top it off its an out of state assignment.