Contracts and Offers

Hello Everyone,

I am very new to real estate and want to begin as soon as possible in assigning deals (professional Bird Dogging). I have alot of questions, please help. Also I would love a mentor that I can call on when I have questions or just nervous. My questions are below. Thanks in advance...

1. I am concern about doing an assignment and lets say I have a 30 day contract with the seller and I have a buyer. I connect the two but the 30 day contract expires. Is there a particular contract that will protect me once I sign the contract over to the buyer. What if they try to remove me from the contract? Can they do that?

2. Does anyone have a list of the questions to qualify the buyers?

3. How do I get the seller to agree to the longest period of the contract assignment?

Any investors in the State of Texas familiar with house bill 1823. Makes it very difficult to do a LOP deal. Any help will be appreciated. My RE say's the TREC can get nasty with investors.

Longhorn

I will definitely have an attorney when I do my first assignment. Can anyone tell me if it is costly and how their billing works? I know all of them are different. I just want to get a general idea. Thanks so much!

When making an offer with the intention to assign, will the seller ask for proof of funds? I intend to be up front about what I'm doing, but I'm thinking they will still want the proof. Thank you for responding!

Penny

Presenting a Winning Creative Offer

There are a million different creative techniques you can do to close with a seller but there is something important you need to understand first. One of the things most often overlooked is how to present your creative offer so that it actually gets accepted. In fact, your seller's response can be almost entirely dependent on how you present the offer. Presenting a winning creative offer is both an art and a science.

For instance, let's say that you want to convince a seller who is free and clear to hold secondary financing for you. Which of these two proposals is more likely to produce a favourable response?

OPTION #1: "Mr./Mrs. Seller, I want you to hold financing for me."

or

Script for Real Estate Agents

The key to making your relationship with a Realtor work is bringing something to that relationship that the Realtor needs. This is called leverage. You may not be buying anything yourself, but if you have a pool of investors already lined up, then most any Realtor would be thrilled to help you out. With a strong investors list you have the power to do multiple deals over time and put tons of money in the Realtor’s pocket. Without investors lined up you may not be able to do anything.

I hear everyone saying that when it comes to wholesaling, that working directly with an FSBO is probably easier to work with than a realtor. I can definitely understand why this is true. But there are so few FSBO's compared to homes for sale by realtor. Basically what Im asking is: do many of you have success putting in a bid with that realtor? Are they generally accepted at a 30% decrease? Will the realtor even tell the owner if he/she thinks the offer is ridiculous? Can someone give me their personal account with putting in a bid for a home if it is for sale by a realtor?

Could I write an addendum to protect me from a sudden drop in the FMV of a property?
ie. natural disasters, ect.

*This contract is contingent upon the real property sustaining its current fair market vaue until closing of the contract.

Ok, I read the books, read the forums, and purchased the Success Academy and everything pretty much states that Assignment Contracts are legal. Well, when I spoke to my loan officer last night, he told me absolutely NOT. He said it is completely illegal and this is why banks won't fund these types of transactions. I decided to do some researching and spoke with 2 real estate attorneys, a realtor, title co., and loan originators who all told me it was not legal. How can this be? I was also told that you may find a title co. willing to work with you, but over time, you can get caught and go to jail. Yikes!! I wish I wasn't getting so many different answers. What is honestly true?

I just got an email back from my RE agent stating that it is becoming 'standard'. Here is her response when I asked why that much:

"I set the EMD (earnest money deposit) at $5000 because cash offers are required to have a $5000 EMD on all. This has become standard of late. It shows that you are serious with your offer and also that you are willing to show some risk. This EMD goes towards your final purchase. REO listings set the precedence on this practice and now I see it across the board on all cash offerings."

Anyone else in Calif. (or anywhere) running into this?