OfflineHello DG Family, I need some help in understanding how far I should go with an assignment of contract? Should I, after locking it on contract, go to the title company and drop it off there? I am working on my first deal and have a couple locked on contract deals with my LLC and or assigns on the contract waiting for my buyer. Since the title company will do the title search on it and if my buyer does not come through after 30days, do I owe the title company the search fee? My guess is yes,so my question is; should I hold the contract untill I sign the assignment of contract with my buyer and he takes it to title company?
What happens if there are problems on the title search and he decides to cancell the assignment?
I have done this on my first two PA's and I had to do a survey and metes and bounds on one property in order for the title search to be complete, this took a long time (couple weeks)in the mean time my cash buyer moved on, I didnt know to have the assignment of contract signed when he accepted my deal. Big tire kicker, but now I owe the survey company $500.00 and although the seller has extended the date on the contract several times, I don't think this will be easy to assign, as I hoped to do as I am starting out with no money and need to make some seed money by wholesaling!
"Let me become all you planned for me when my seed was planted and selected by You to sprout i nthe vineyard of the world" "Help this humble salesman, Guide me, God."----OG Mandino
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096
YOU should not have to do any of the title searching unless you are going to be the end buyer. Ideally, it should play out like this:
1) You get a property under contract with a due diligence period of 7-14 days.
2) You find a buyer:
a) Get a signed Assignment Agreement for your fee
b) Get an Earnest Money deposit from your end buyer that at least covers the Earnest Money that you had to pay to the seller
c) Buyer has 5-10 due diligence (the amount of time should be at least one day less than the amount of time you have left in your due diligence period so that if your buyer backs out then you still have time to back out and get your earnest money back)
d) Assignment Agreement and PS agreement go to the closing office
The end buyer will know what he/she needs to do to close on the property. They will factor in all the closing cost, title search cost, and any other fees into the numbers that they will calculate to come up with the amount they will be willing to pay for the house.
Hope this helps,
Stephan Roberts
"In absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia!"
Here is a FREE property analyzer I've found:
https://tvallc.infusionsoft.com/go/RehabLite/sroberts/
It's a great tool to use to help analyze your deals (and did I mention it's FREE)! But, you really should spend the $97 and get the full premium edition! IT'S AWESOME!!
Wow, thanks Stephan I knew I should have asked this question here a long time ago! FYI my buyer was not the traditional Cash Buyer, but just someone who is looking for an investment to put his money into.... So he was being coached by me on the assignment process, most all that responded to my add on were the non-traditional Cash buyer. They are receptive on the process but just dont have the Funds right away. So I am continuing to go out and do so that I can learn, learn,learn.
PUSH= "Persever Until Something Happens"--Dean Graziosi
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096
I get the deal under contract and do nothing until I have a buyer interested. If he wants it, I hand him the purchase contract along with my assignment contract signed by us both and he does the rest! If he pays me upfront, I'm out. If he doesn't and I get paid at closing, that's okay too. it's only a week or so before it closes.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
That's very reasuring to know...I will do from this point forward, my third PS
agreement is on my desk as I type this, A thousand thanks, this has really helped me out tremendously, could kick myself for not asking it sooner!
"The best leaders are masters at identifying and prioritizing obstacles that are between them and the outcome they want. Then they brainstorm ways to eliminate, avoid or neutralize the obstacles." @Forbes.com
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096