I don't think so either. I have a Real Estate Lawyer that specialzes in Double closings and assignments. Most Brokers and/or REA most likely will tell you that it's illegal, but you have to go thru the right people. An Agent may not be able to do the assignment, but a Lawyer can.
Check for Real Estate Lawyers in your area and ask them if they deal with Assignments!
Assigning a contract (wholesaling) is not illegal. Some banks will not allow it, hence their contracts may contain a paragraph stipulating that.
When you encounter such contracts where you are not allowed to write in 'and/or assigns' after your signature; that's when you have to be creative, and do a double closing where you would need to bring in a lender who does tranasactional funding.
Wishing you succes,
Valerie
__________________
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
I'm from the North shore area.. Wholesaling and assigning is NOT illegal in Ma.
I've spoken to a few attorneys (we don't use title companies in MA; attorneys do everything here)and currently do deals with another investor who's been accepted on A&E's flip that house. We're actually filming at the moment on a couple flips and am not sure when it will air. Pretty cool stuff.
Just get out there and do whatever it takes to find a deal. Have an attorney review your contract or learn how to use a standard purchase and sales agreement and get the deal under contract. Become a member at one of the investors associations and you'll find a buyer. I'm not sure which area you're from but I would want to show up at the next meeting around your area.
Peabody, Boston, Chelmsford, Worcester, Nashua NH are just a few off the top of my head.
__________________
"FAITH is being Sure of what we hope for and Certain of what we do not see." -Hebrews 11:1
This is a very common question, and hopefully this will clarify things for some people.
The reason agents (or anyone else for that matter) will tell you that it is illegal is because of agency law. In legal terms, agency is the highest form of fiduciary duty, which means you are acting on behalf of somebody else, and you are responsible to look out for their best interests. That is why in every state, in order to "represent somebody else" or be an "agent", you have to be licensed. However, there is no restriction on selling something you own. That is the main difference. What we are selling is our own personal rights that we "own". Meaning, I have the rights to buy this house for the next 30 days at a specific price. If I want to sell those rights to you, I can without any license, because I own them!
When we talk about assigning contracts, many agents feel like you as an investor are "representing" the buyer. This is not true under the framework we teach. When we work with our buyers, we find out the criteria that they are investing under. Knowing what they want to buy just tells me what I should look for. I know that if I find a project that meets the buyer's criteria, they will be likely to want to take it off my hands. I am selling my rights to the property, I am not representing the end buyer. That is the major difference.
Hope this helps!
At that point, I make an offer to buy the property. I'm not doing it "for" the end buyer, nor am I "representing" the end buyer. I represent myself, and only myself.
groups tend to say things that protect (or add value to) their own group. It is called "talking your own book". Most Realtors will tell you bad things about assignments, lease/options and the fact that it is a great time to buy a house. (Go look at the NAR website). Stock brokers always tell you it is a great time to buy stocks or mutual funds. Economists always say the future looks brighter.
The only truth is your truth. Do the research and seek out experts that can guide you during the turbulent times.
__________________
Always Looking to Acquire Houses | Always Looking to Amaze Investors
"Most Realtors will tell you bad things about assignments, lease/options and the fact that it is a great time to buy a house. (Go look at the NAR website)"
Maybe about 1 out of 100 realtors "get it". If they don't understand it, it's illegal. If they can't make a commission, it's illegal. If a lease/option will solve the seller's problem, the realtor slams it because they don't get a commission. That's where you as the investor have to present it to the realtor in terms they can understand. You say "Look, bonehead, I'll slide you something from the option money and you can negotiate with the seller to get a fee when the option is exercised since this deal came about while you had the property listed." Then the little light bulb goes off. Most realtors are out for themselves and their commission. This became evident to me when a man in my neighborhood showed up at a neighbors door with a hatchet. To make a long story short, 3 hours later after pepper balls, rubber bullets, and police dogs, he was arrested. The person living next door to the nut case put his house up for sale. Just for grins I called the realtor to see what the story was. She cut right to the chase and said he was selling because of the wierd neighbor and "you could offer $20,000 less and he'd probably take it." Nice guy. The realtor is pretty free with the seller's equity. Most realtors fall into the category of "How much are you prequalified for? Here are the houses in the MLS in your price range. Buy one." If it's more work than that, they don't want to be bothered. I asked one realtor if he was embarrased to present low offers. He said "I don't want to waste the sellers time or my time." That pretty much sums it up. Sorry to ramble.
I've been trying to plan out my presentation and how I would explain everything to my potential "all star agent".. so we'll see what happens this weekend..
Dave Seymour from City light homes & dms homebuyers out of Lynn, Ma... I help out with the marketing and finding deals.. He and another investor put up the money.
Dave's a popular trainer around the country and works in Dave Lindals and Than Merrils events..
__________________
"FAITH is being Sure of what we hope for and Certain of what we do not see." -Hebrews 11:1
Offline
I don't think so.
Donald Myers
I don't think so either. I have a Real Estate Lawyer that specialzes in Double closings and assignments. Most Brokers and/or REA most likely will tell you that it's illegal, but you have to go thru the right people. An Agent may not be able to do the assignment, but a Lawyer can.
Check for Real Estate Lawyers in your area and ask them if they deal with Assignments!
Renae
The Browley Team
Working Towards Success!!
You can also check with your title company, some companies does assignment deals.
Assigning a contract (wholesaling) is not illegal. Some banks will not allow it, hence their contracts may contain a paragraph stipulating that.
When you encounter such contracts where you are not allowed to write in 'and/or assigns' after your signature; that's when you have to be creative, and do a double closing where you would need to bring in a lender who does tranasactional funding.
Wishing you succes,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I'm from the North shore area.. Wholesaling and assigning is NOT illegal in Ma.
I've spoken to a few attorneys (we don't use title companies in MA; attorneys do everything here)and currently do deals with another investor who's been accepted on A&E's flip that house. We're actually filming at the moment on a couple flips and am not sure when it will air. Pretty cool stuff.
Just get out there and do whatever it takes to find a deal. Have an attorney review your contract or learn how to use a standard purchase and sales agreement and get the deal under contract. Become a member at one of the investors associations and you'll find a buyer. I'm not sure which area you're from but I would want to show up at the next meeting around your area.
Peabody, Boston, Chelmsford, Worcester, Nashua NH are just a few off the top of my head.
"FAITH is being Sure of what we hope for and Certain of what we do not see." -Hebrews 11:1
how cool to be on flip that house!!! what a great experience! you'll have to let us know when it airs.
Wishing you great success,
(you name is almost the same as my nephew's (Alec R.)
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
This is a very common question, and hopefully this will clarify things for some people.
The reason agents (or anyone else for that matter) will tell you that it is illegal is because of agency law. In legal terms, agency is the highest form of fiduciary duty, which means you are acting on behalf of somebody else, and you are responsible to look out for their best interests. That is why in every state, in order to "represent somebody else" or be an "agent", you have to be licensed. However, there is no restriction on selling something you own. That is the main difference. What we are selling is our own personal rights that we "own". Meaning, I have the rights to buy this house for the next 30 days at a specific price. If I want to sell those rights to you, I can without any license, because I own them!
When we talk about assigning contracts, many agents feel like you as an investor are "representing" the buyer. This is not true under the framework we teach. When we work with our buyers, we find out the criteria that they are investing under. Knowing what they want to buy just tells me what I should look for. I know that if I find a project that meets the buyer's criteria, they will be likely to want to take it off my hands. I am selling my rights to the property, I am not representing the end buyer. That is the major difference.
Hope this helps!
At that point, I make an offer to buy the property. I'm not doing it "for" the end buyer, nor am I "representing" the end buyer. I represent myself, and only myself.
groups tend to say things that protect (or add value to) their own group. It is called "talking your own book". Most Realtors will tell you bad things about assignments, lease/options and the fact that it is a great time to buy a house. (Go look at the NAR website). Stock brokers always tell you it is a great time to buy stocks or mutual funds. Economists always say the future looks brighter.
The only truth is your truth. Do the research and seek out experts that can guide you during the turbulent times.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
"Most Realtors will tell you bad things about assignments, lease/options and the fact that it is a great time to buy a house. (Go look at the NAR website)"
Maybe about 1 out of 100 realtors "get it". If they don't understand it, it's illegal. If they can't make a commission, it's illegal. If a lease/option will solve the seller's problem, the realtor slams it because they don't get a commission. That's where you as the investor have to present it to the realtor in terms they can understand. You say "Look, bonehead, I'll slide you something from the option money and you can negotiate with the seller to get a fee when the option is exercised since this deal came about while you had the property listed." Then the little light bulb goes off. Most realtors are out for themselves and their commission. This became evident to me when a man in my neighborhood showed up at a neighbors door with a hatchet. To make a long story short, 3 hours later after pepper balls, rubber bullets, and police dogs, he was arrested. The person living next door to the nut case put his house up for sale. Just for grins I called the realtor to see what the story was. She cut right to the chase and said he was selling because of the wierd neighbor and "you could offer $20,000 less and he'd probably take it." Nice guy. The realtor is pretty free with the seller's equity. Most realtors fall into the category of "How much are you prequalified for? Here are the houses in the MLS in your price range. Buy one." If it's more work than that, they don't want to be bothered. I asked one realtor if he was embarrased to present low offers. He said "I don't want to waste the sellers time or my time." That pretty much sums it up. Sorry to ramble.
I've been trying to plan out my presentation and how I would explain everything to my potential "all star agent".. so we'll see what happens this weekend..
Josh
Josh
"The best is yet to come."
"Never let someones opinion become your reality"
Thanks for the great posts. It's gives us more knowledge when dealing with realtors.
Dave Seymour from City light homes & dms homebuyers out of Lynn, Ma... I help out with the marketing and finding deals.. He and another investor put up the money.
Dave's a popular trainer around the country and works in Dave Lindals and Than Merrils events..
"FAITH is being Sure of what we hope for and Certain of what we do not see." -Hebrews 11:1