OfflineI've been studying up on assignment deals and am a little confused still on when buying from the owners with the purchase contract if you in fact need to get a mortgage to buy the house from the original owners then assign to another investor. I know you can have the 60-90 days to sell but you need to buy from the owners first correct?
Thanks,
Kristy
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I don't believe that you'll have to get a mortgage or even purchase it, ie using none of your own money to complete the deal. This is where it's very easy to make quick cash because you never actually take possession of the property, you just assign it over to someone else via a contract. I also don't think that the timeline is set to 60-90 days, it's just depends what the owner will sign to. The longer the time is the less chance that they will sign the contract. Look at the success stories because I believe that there are people that have done just that on there. Look at the Forms and Docs page for examples of these contracts that you can use. Good luck and I hope that it all works out for you.
If you are doing assignments then NO you do not have to purchase the property. What you do have to do is:
1. Put in an offer and have it accepted
2. Make sure you signed ALL docs and/or assigns
3. Stipulate a 60-90 day escrow (to give you time to find a buyer)
4. You will have to put up some type of earnest money like 1000.00 or something
5. Ex. If you locked up home for 150K and it has a value of 200K then you do
assignment fee of 1% (thats the amount I use) then your assignment fee is
15K.
6. Complete Assignment Contract with NEW buyer and either collect your fee up
front (which is what I do) or have it written in and get paid at closing.
I don't like to get paid at closing because the banks are a pain and they usually don't want to pay you. I feel that if I am letting you get the house for 165K (150K + 15K Assignment Fee) then you as the buyer should have no problem paying me up front. The deal is already locked up, you had no work to do, just show up at closing.
I approach assignments as a hard ball because I don't like to get stuck with something I don't want or can't afford. So perfect the craft and just do it.
I hope this helps.
Anita
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All the other comments are great ways and are exactly what you need to do. You can always create a buyers list ahead of time for those sellers who do not want to push closing out 60-90 days and you will have a few people already in line waiting for you to bring them a property and if one fails then you can just go to the next one on your list.
1. Put in an offer and have it accepted
2. Make sure you signed ALL docs and/or assigns
3. Stipulate a 60-90 day escrow (to give you time to find a buyer)
4. You will have to put up some type of earnest money like 1000.00 or something
5. Ex. If you locked up home for 150K and it has a value of 200K then you do
assignment fee of 1% (thats the amount I use) then your assignment fee is
15K.
6. Complete Assignment Contract with NEW buyer and either collect your fee up
front (which is what I do) or have it written in and get paid at closing.
I don't like to get paid at closing because the banks are a pain and they usually don't want to pay you. I feel that if I am letting you get the house for 165K (150K + 15K Assignment Fee) then you as the buyer should have no problem paying me up front. The deal is already locked up, you had no work to do, just show up at closing.
I approach assignments as a hard ball because I don't like to get stuck with something I don't want or can't afford. So perfect the craft and just do it.
I hope this helps.
Correction: 1% of $150,000 is $1500
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