assignment deal: locking the contract

Find deals from motivated FSBO and tired landlords and expired listings,probate divorce,distressed properties,etc.

You HAVE to have buyers.

You have to know its a deal with enough profit spread to assign to your buyer and you make a profit or fee.

After you're sure you have a deal, lock it up under contract.

Notify your buyers of ther deal and the profit they can make.

Assign the contract to the buyer.

Submit the paperwork to the title company.

Get paid.

Rinse and repeat.

Mike

beautifully put....

under Deans chin in the upper left, enter assignments and click enter for more info-check forums for assignments

POF: obtain one from a transactional funding co.

besttransactionalfunding

coastalfunding

fundaflip

Thanks. I'm aware of the process. I was just wondering what to do if the seller wanted proof of funds.

www.coastal-funding.com. you can get a POF letter there.

That part is fairly easy: Get a POF letter from Coastal Funding or one of those other Transactional Funding outfits. You may or may not need to come up with a em deposit though. Sometimes you can get it from your buyer. But, yes, you need to have buyers, too.

But OK say I have a buyers list, and a buyer who might be interested, and lets say I go to this seller and want to lock up contract. Now wha t do I do if he wants to see proof that I have funds, or prequalified for a loan. My credit isnt very good right now. So I wont qualify for a loan.

I'm starting to get the hang of all of this. Its just the assingments that I'm still lacking confidence. Especially since I'm new to investing, and in NY city they're a little rough,I think. I'm still not sure if I should start off with a rental property or an assingment.

Rental properties: you can lose your but on them-bcause the tenant refuses to pay, causes BIG damages, and you STILL have to make payments.This will KILL your positive cash flow. Eviction takes a long time. Beware of 'professional tenants' they are out there and know better than you how to live there for FREE.

Assignments/wholesale: BEFORE you go to look at a potential deal,run the numbers, do your research on the property.Go to best transactional funding and get POF for THAT address and print it out and take it w/you to show the seller if needed.(you may have to put POF in your co's name and you as an agent;ex maxximus properties) Remember, you HAVE to have a buyer, so make sure it IS a deal for everyone. This funding,if used, is only for one day so you can do a back to back closing,and immediately sell to your buyer.

You have to be sure you got all the repairs expenses,taxes,insurance,HOA fees, profit margin/spread in your numbers so you haven't overlooked anything to present it to your buyer and show them how they can benefit from buying this property.

For all this work you should get paid.

Hope this helps clear a few thing up for you and others.

Mike

Mike you just reminded me of a problem my friend had years ago. He had a property with two single houses on it. He was going to rent the one in the back.

Now I was fixing a couple of things there, he spoke to someone on the phone and they came and looked at the house. So the next day he called me and said the people were going to rent it, and for me to give them a key and he would stop and get everything signed and deposit after work, so I did.

Well those people moved in before he got out of work. When he went there they said that they were not going to pay any rent and they weren't leaving. So he called the Police and they said it was a civil matter go to small claims court.

So they went to court the judge said that they never signed a lease so he could not get an eviction against them. They were protected under the squatters law and if they stayed for a year they would own it.

So I went there and told them I had a contract to replace the windows and fix the furnace. So I cut the wires to the furnace and removed all the windows on the house. They called the police and he asked me what I was doing, I showed him my contract and told him I had to finish my job or I would be sued.

So those people just put plastic and boards over the widows. So the next day my friend and his wife and I were there and we shut the water off the meter was in the front house. His wife went in with her pillow and blanket and said she was staying untill they moved out. They said OK would you like some coffee she said yes but the water didn't work. They said who turned off the water, she told them that she did.

So they called the police and when they came they said the meter was the property of the water authority and arrested my friends wife.
The people finally moved out three days later but see what can happen with tenants.

Thank you for the great info. I was planning on buying a REO out of state with cash. Im not going for a loan. I'm going to have some money in about a month which I was planning on using. So I wont have to worry about a mortgage. These past few days I've been stressed out, not knowing where to start. Just been reading and reading and reading. I'm going to explode if I start working on something soon.

HORROR story with tenants.

Can't express how important is to screen tenants...or not have them.

Buy storage units, billboard signs, car washes and laundry mats!!!

HOWEVER--you call the last landlord who is so happy these ppl are gone and he says' oh yeah, they are great tenants, always paid on time --I hated to see them go'!!!! IT happens---who's the bigger fool?

Another reason to wholesale and assign.

Thanks Jim for another page of in the life of REI.

Mike

So I guess buying REO and renting it out isn't the best way to start out? I thought this was a good time to buy REO's and renting them out until the market changes?

It is but you have to be on top of things. You also mentioned using the cash you were going to get so you don't have a mortgage, not good. Use the cash to leverage property and buy more. Cash is good for getting things started but you want to use other peoples money not yours. So buy something get a mortgage and buy another one and another one.

The problem I have Jim is my credit isn't good at this time for a mortgage. When you talk about leverage, you mean buying a house then refinancing it and taking the extra money and using it on another property, right? I'm not exactly sure what route to to take. I thought as long as you got a good deal on a property is was OK to use your own money? I mean to start off. Well either way, I've been working on my credit and will hopefully be able to get a loan. Right now my brain is in overdrive. Maybe I should use some of that money for Dean's coaching.

Sorry to bother you again. When you say"buy something then get a mortgage." What do you actually mean?

hi,
I have a great deal nder contract, a sfr the seller was very motivated. I have submitted the deal to some potential buyers. they seem to be moving slow and I want to move fast and assign my deal. Do you have any suggestions on finding buyers that can close really quickly. I need to close on this like yesterday.
thanks
S.McCollum
Fayetteville, Ga