Out of State Assignment Deals

These are good questions, as not long ago I wanted to work with a seller from out of state and I also live in a different state.
But with so much time going back and forth, another investor in that state grabbed it before we could come up with a way to show the house. And also, the seller wasn't sure who she would give the key to in that neighborhood to show it.
So I too would like to know how this gets done.
Sandi

THAT IS AN EXCELLENT POST. i HAVE BEEN AROUND AWHILE, BUT HAVE NEVER ASSIGNED FROM A DISTANCE. I HAVE THE SAME QUESTIONS.I HOPE SOMEONE CAN ANSWER THESE .I KNOW CAROL STINSON DOES THIS ON A DAILY BASIS.I WISH SHE WOULD RESPOND TOO THE POST.

GOOD LUCK AND HOPE YOU GET YOUR ANSWERS

CURTIS FILLERS
(CHARLOTTE,NC)

I don't assign deals but I do offer services to out of state investors I have information on my site about some of these questions. I bet there are others that would help in this same manner.

Maybe you can get one of those companies to do the lockbox for you. Or, if you know a friend / relative in that city. Maybe you can get your realtor to do it? Obviously you would find a way to compensate them for their time, or you could put an ad on craigslist looking for someone who can do this for you.

It would be nice to hear from someone who's actually done this, or who is doing it to this day.

I've needed these answers too! I've been working on this situation for 3-1/2 months trying to work out the bugs without going on blind faith which gets you robbed.
The best answers I have come up with besides what the others have said is take the time and build your "power team" in that area then dig in. It would help if you could spend some time there doing this.
I've studied Carols methods. So far she doesn't give ALL the answers. But she does look for other DGers in that area to work with her for a start who can put things together for her quickly and eventually she goes there. That is the short of the process. I am going to put this way together, period. My home area sucks! So this IS my choice.

I am just starting to do this out of state. For me, in order to do this I have had to assemble a team where I am looking. I just don't try and grab something anywhere.(not yet anyway)I have people on the ground so to speak, that handle looking at the properties, doing ARVs and rehab estimates and putting together buyers. I am doing exactly what I do locally, just partnering with my team. In my opinion you can NOT do this 100% virtually, someone you trust must be on the ground. You need your "power team" where you decide to invest out of state.
You can do your networking virtually, but as far as finding and evaluating a property, getting it under contract, showing it to potential buyers or renters (whatever your exit strategies)doing the rehab if you are flipping or just showing other investors if you are wholesaling you need someone on the ground to help you. To me, that is the only way to do out of state deals. First get your realtors, title company, contractors, lawyers etc etc. and your partner /bird dog established where you are looking. I know this is a lot of work, but to do a consistent business in the real world you have to have people on the ground.

cre8mour,
Answers to a couple of questions.
Most of the questions you asked are solved by having your power team assembled where you are investing as stated above.
1. I will let other investors market my properties for a bird dog fee. If they can bring me a buyer, no problem. I never let them get the property under contract with out a non refundable deposit. This keeps people with no buyers or money from tying up your property while they search for a buyer.
If you have the property under contract, let everybody look.
You can close with out being there, sign the docs and send them back, but with people on the ground you can have them handle it, either way that part is easy.

She can correct me if I am wrong. Carol Stinson from DG does this Virtual Wholesaling but she has collected a team of bird dogs to work with her on the ground. She does not buy a property with out some one putting Eyes on it in most cases. They also supply leads that they have evaluated for her.

Bottom line: You have to have people on the ground and a power team assembled there.

I've tried it the other way and like Sandi said, if you don't have people there, some one will cut you out before you can get it done virtually.

Michael Mangham
MD Home Acquisitions LLC

Hey, just wanted to say a quick "Thank You" to all who have commented so far. I would love to hear from Carol on this, and I believe Randy has done a virtual assignment deal as well, so would love his input, too!

Michaelmangham: You mentioned that you allow other investors to market your properties for a bird-dog fee. I kinda like that idea. In fact, I love that idea! How much are bird dogs typically paid when they bring you a buyer? What agreement/contract/form do your bird-dogs use with you to ensure they get paid? Do you simply contact them to pick up their check/fee once the buyer they brought in actually closes (meaning they don't get paid until you do)?

Wow. I'm super juiced that you brought this whole bird dog thing to my attention, because I hadn't thought that other investors marketing my deals could be a good thing! Stay tuned everyone! I may be looking for bird dogs soon... BTW, anyone in or near Leechburg, PA? Let me know!

Just a marketing fee agreement. they get paid at closing. Also a per deal non circumvention agreement. Yep I do this all the time, sometimes I supply the buyer for one of my fellow investors. Anyway to make a quick buck!

Michael Mangham
MD Home Acquisitions LLC

Michaelmangham: Thanks for the quick response. Please let me know where I can find this marketing fee agreement. Is it here on this site? Also, do you complete one with EVERY bird dog who contacts you and says they want to find you a buyer? Or do you screen your bird dogs to make sure they know a little about what they're doing first?

We only sign the agreements when a contract to purchase a property is going to be signed. Deal specific. If someone says they can bring me a buyer I say, go ahead, let me know when they want to see my property. Then if they say they want to buy I inform them of the non refundable earnest money. That separates the cash buyer from the person who still needs to find a real buyer.
As for the agreements, I would contact a real estate attorney in your area and have him draw them up for you.

Michael Mangham
MD Home Acquisitions LLC

I'm so glad I finally stepped out of shy mode to get a lot of my questions answered. My only regret is that I didn't ask sooner! This post has really cleared things up for me, and I'm sure has helped someone else. Love the "deal specific" Michaelmangum, often times folks try to explain REI leaving out key factors. I say...Don't leave out anything assuming I already know, because usually that's the part I'm missing! This information is priceless to me, and I suddenly feel like I can conquer this paralysis analysis thing I've had for some time now. Thank you so much!