When make an offer with the intention to assign, will the seller require proof of funds?

I feel the same way too aiellosdream. That is good to ask this one too.

Not necessarily, the contracts that dean has listed online explain to the seller your intentions to lock the property up for 30 or more days. This is until you find a buyer to pass the assignment over. He also includes contingency clauses that allow you to walk away from a deal without using any money whatsoever.

If you haven't read "profit from real estate now" I suggest you get the book. Chapter 7-8 focuses primarily on this topic.

If you go to deangraziosi.com/ieecontracts you will see that "the investor discloser statement and seller's acknowledgment" allows you to place whatever property you find under contract and clearly states your intentions as the assignee. Once you explain this to your seller they will not insist that you pay them anything.

Also because most the sellers that you will approach are motivated sellers. Its highly unlikely you will need to use your own money.(reason because if you don't sell their home they could go into foreclosure and loose their home. Plus have bad credit for years to come.) Besides if you don't find a buyer to close you can always walk away from the deal as long as you have the appropriate contingencies in place.

Don't be afraid remember you are helping the seller get out a hopeless situation. You are only selling the equity of that specific property to someone else.

Also look at deangraziosi.com/purchaseagreement and deangraziosi.com/disclosureagreement

Hope that helps.

Thanks for the great information. I also have had several run ins with realtor's and other wanting to have a letter of credit first or else they would not even talk to me any more about the property. That makes it very difficult for someone just starting out to assign a property.
Thanks again have a great day!

cegrooms

cegrooms, It is much easier to get an assignable contract directly from a home owner in distress. No need for a realtor. If you do use a realtor you must present yourself as a pro that can close on the deal whether you assign or not. Put yourself in the realtors shoes. A client tells you "I want to get this house under contract, I have no intention of buying it myself, I am going to TRY and find a buyer and make money in the middle for myself". That will not get you far in most cases. You need to sell yourself and your ability to CLOSE.
Make sure you get a contract that is assignable. If you are looking at an REO, assignable contracts are getting very rare.

Good luck!
Michael Mangham
MD Home Acquisitions LLC

I don't know if this works or not, but someone I met at a investor club meeting suggested this.

You and the investor that your assigning the deal to enter the deal as joint-venture partners. They bring the money, you bring the deal.

You then sign over your rights in the joint-venture for the same amount of money you would have recieved in a straight assignment deal.

This would only work in a deal where the actual end buyer, obviously not you pays cash or gets private investor money. The reason is if there is going to be a traditional mortgage, then it is possible that you and the investor would have to apply for a mortgage together, but not likely.

What happens when You have have a property under contract for 30 or whatever amount of days and another investor comes along and wants to put in an offer to do the same thing?

I mean for example I have property under contract for say 70K with a FMV of 100K now I go advertise it on CL for 75K and someone comes along and accepts that offer with the intention to wholesale it again.

That's perfect if you have an assignable contract. Assign it to the guy you found on craigs list and close. Its his business how he sells it to his buyer. Now if he has no money and he wants to assign your contract to his buyer then you pay him a finders fee. What if his buyer has no money? STOP. This is what is known as a daisy chain and is usually a waste of time. Make sure buyer #1 can close and don't go any further down the chain!

Have Fun!
Michael Mangham
MD Home Acquisitions LLC