locking up an investment then assigning the deal

Bandit1 in your contract, I believe there should be a clause in your contract that says once your investor buys the rights(contract) to purchase the deal you found, you are no longer held to any agreement, required to do or pay anything.
Thats why Dean says we should always have an experienced RE attorney involved in our deals.
Maybe the paper
http://www.deangraziosi.com/resources/real-estate-forms

you are talking about is the assignment sheet?
Your investor puts their name down, you put down yours, and then thats it?

RENinja

Here are a couple of this that you need to determine.
1. What is the actual ARV. What will this property actually SELL for? Not what you think it may be worth.
2. What are the rehab/remodel costs needed to bring that ARV?
3. When you have the numbers listed above, then you will have the GROSS profit spread for your buyer.
Right now you have it figured as a move in ready property with no rehab or remodeling costs. Lets just use your numbers, totally move in ready, no work needed. From your buyers perspective.
Sell the house for $90,000 in 90 days or lees.
His closing costs, commissions, insurance, taxes, utilities based on a 90 day hold cash deal $9,000
Buys from you at $67,000
$14,000 net profit( no where near $30,000) IF there are no rehab costs and the thing actually sells for $90,000 and he has no money costs. Still a 20% ROI.

As far as getting out of the deal, the purchase and sale agreement between you and the seller should have an inspection period. During this inspection period if you can not come up with a buyer you can cancel the contract do to inspection. Some people put "if a buyer cannot be found in X amount of days contract is void" ETC ETC ETC.
When you get a buyer to assign the contract to, make his earnest money non refundable. That way you will have a REAL committed buyer.

One last thing:
$90,000 minus $67,000 = $23,000 "instant equity" not $30,000!

Michael Mangham
MD Home Acquisitions LLC

i know i was just using ballpark figures ..but he is selling for 67k though....i need to get down tomarow and do some math and see about everything and maybe contact the buyer to so i guess its a TO BE CONTINUED?....

Any update on this deal?

for the "To Be Continued" part ....

Valerie