Have you already talked to the homeowner? First thing YOU have to do is see if they're willing to sell you the property. THEN you would "lock it up" by signing a purchase agreement with the seller, with a small earnest money deposit that would be held with an escrow/title company. That gives you the sole right to purchase the property for a given length of time that YOU set. 30, 45, 60 days 'til closing, whtever you and the seller agree to. You MUST sign it your name "and/or assigns" to give you the right to assign the contract to another buyer. If you are just doing a bird-dog fee (which there is some debate if it is legal in all states), you'll have to sign an agreement with the buyer/investor to make sure you get your money. For an assignment fee you also must sign an agreement. To protect yourself from being "stuck" with the property if you don't find a buyer, you must have escape clauses built into the purchase agreement. Financing, inspection, upon partner's approval. These are a few of the contingencies you could include.
There has been much discussion in the forums about these subjects. I would suggest reading as much as you can on them.
I wish you well in your REI. And welcome to the DG family.
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Hi Juan.
In response to your PM on the pre-foreclosure:
Have you already talked to the homeowner? First thing YOU have to do is see if they're willing to sell you the property. THEN you would "lock it up" by signing a purchase agreement with the seller, with a small earnest money deposit that would be held with an escrow/title company. That gives you the sole right to purchase the property for a given length of time that YOU set. 30, 45, 60 days 'til closing, whtever you and the seller agree to. You MUST sign it your name "and/or assigns" to give you the right to assign the contract to another buyer. If you are just doing a bird-dog fee (which there is some debate if it is legal in all states), you'll have to sign an agreement with the buyer/investor to make sure you get your money. For an assignment fee you also must sign an agreement. To protect yourself from being "stuck" with the property if you don't find a buyer, you must have escape clauses built into the purchase agreement. Financing, inspection, upon partner's approval. These are a few of the contingencies you could include.
There has been much discussion in the forums about these subjects. I would suggest reading as much as you can on them.
I wish you well in your REI. And welcome to the DG family.
Rina