Assignment Contract

What you need to do is find a awesome deal,look in the local newspapers,online,GET A LIST OF PRE-FORECLOSURES FORM YOUR COUNTIES WEB SITE.You will need to do some type of advertising for the PRE-FORECLOSURES, to get the homeowners to call you.After you have found a property thats a great deal you then neg. a below market price and LOCK UP THE DEAL.There is a little more involvment than that,you can reply to me if you want and i can help you further.SULLY.

what happens if you lock up a house and cant find a buyer?

If you don't find a buyer you might as well THROW IN THE TOWL.lol just kidding,here's what you will do:when you lock up the deal on the property you need to put certain clauses in or attached to the contract.for instance in this case you could have gotten out of this deal if there were a CANCELLATION CLAUSE,
here are some other clauses that you should think about adding to your contracts:ABILITY TO AQUIRE FINANCING- allows the buyer to cancel the purchase contract of a piece of real estate without penalty if they are unable to secure financing necessary in completing the purchase.
PROPERTY MUST PASS INSPECTION- this contingency states that the property defined in the purchase contract must PASS ALL INSPECTIONS and if the property does not PASS INSPECTION or if the seller is unable or unwilling to honor all requests of the buyer in replacing or repairing any or all items requsted by the buyer, the contract is NULL AND VOID without penalty to the buyer.
CANCELLATION CLAUSE- allows the buyer to cancel the purchase contract with the seller, within a specified amount of time, without facing a penalty or losing any earnest money.

I HOPE YOU APPRECIATE THE TIME THIS TOOK,WHEEEEW,THATS A LOT OF WORDS TYPED!!
YOUR HERO,SULLY.

Thanks for the info, it almost sounds like you know some stuff!
Course when you lock up a deal on a foreclosure, you already figure they don't have the money to pass inspection, removing you from any liability. This site must have contracts that we can use for such deals.
Thanks again!!

Sully once again thanks for the info.

Do you have copies of these documents on this website in Adobe?

Can someone tell me where to find an assignment contract that has all the contigency clauses? Any website with this information? I'm trying to make my first offer for a property and I want to know that I can safely exits without wounds in the event I'm unable to secure financing or assign the deal to some investor at the expiration of the closing date.

hello: my name is steven, and i am a newbie at realestate. I would appreciate any information that anyone can offer to help me to get started in my new business.

steven

Hi Steven,

I'm a newbie also. But I've managed to put some of the pieces together so far to have a solid foundation for my business. Here are the basic things you need to get started. Get knowledge,knowledge,knowledge and more knowledge. Always continue to educate yourself. There are always new and improved ways of doing things. Also, name and corporate your business under one of these. An LLC, LP, S Corporation, etc. Discuss the differences of these entities with an advicer who is knowledgable in forming them and can explain the benefits of each one. He/She can help you form one that is most suitable for your needs. This protects you and your assets. Get yourself some business cards for networking. You also need a contact phone number,email,fax,etc. Then develop your networking team. Ex. realtors,lawyers,title companies,investors,accountants/CPA,etc. Not only will they be of great service to you but a great source for referrals. Well, those are the basics I hope this information was helpful. Make Lots Of Money!

When you plan on doing an Assignment, the first thing to do is locate some end buyers/investors. We will always look for motivated sellers, so if you have a contract accepted who are you going to call? You will call all, first come first serve.
As far as the Assignment contract, you can use your Purchase Agreement. If the property is listed you will use a buyers agent to acquire the property. They will be required to use their companys contract that will have the 3 contingencies already added. If you are working with a FSBO, you can stop by a Title company and they will have blank contracts and will be able to give guidance on how to fill it out.
When you do an Assignment, after your buyers name at the top of the contract, it should read "and/or assigns" right after.

I am very interested in trying out assignments. I am in the Navy and dont have alot of time to talk to lawyers and investors. But I am coming up on a stand down period which will allow me around 9 months on shore. I hope to be able to find some Forclosures and lock and assining them.
I was just wondering how much it cost to have lawyers draft up these contracts of if you do it your self. How does that work?

hello David,

Here is a link to a post with an example of an assignment contract, take a look at it. It is pretty self explanatory. You may need to read it a couple of times to catch the "drift".

Follow this link:

http://www.deangraziosi.com/node/11685

By the way, you do not need a lawyer to draw up this type of contract.

I wish you much success David

Kelly

Thank you for the link. And oppreciate your wishes. I will check out that link. If I may ask what is your experience with the whole assignment process? Have you had much success with it?

Thank you again for the info.

David, you should be able to successfully locate a RE Attorney that will make adjustments to a current "purchase agreement" that you already have for around $300-$500 depending on the Attorney, I would strongly reccomend doing this once you get your 1st or 2nd deal "under your belt", SULLY

Kelly,
I checked out the link and kinda understand it. So you have to sign a contract like I am going to buy the property and then make an assignment contract? Do I actually have to buy the property if I can't find an investor? I read that you can put other clauses in the contract to opt out for some various reasons. Is that the case?

If I get a few assingments under my belt, what would I need to use an attorney for if I have allready done it without one? What would be the advantage to doing that?

That's what I was thinking. Seems like you would need one for your first one or two and then no longer after you've gotten everything straight. I must be missing something about this stradegy. Can someone pls. tell me why an investor that knows what he/she is doing would need me to do the same thing he could easily do himself and pay no fee? I believe this will be the route for me to begin and will be glad to do it. Just don't completely get it. Please enlighten me. Thanks, Kevin

Welcome to the DG family everyone, we're glad to have you join us.
I've done an assignment and I did it without a realtor or a lawyer. So you CAN do this without their assistance. I think Sully was suggesting you get one to look over your contracts. But honestly I had other investors look at mine and they basically used the same ones. The end buyer WAS an investor and we used HIS asssignment contract. So just do your due dilligence and you should be fine. This way you keep all the money you make assigning it.

Yes, you want to lock in the property with the purchase and sales agreement and add your escape clauses, that way, if you can not find and investor to purchase your contract, you are not obligated to purchase.

The assignment contract is between you and the investor, and the purchase and sales contract is between you and the seller.

The reason another investor cannot buy the property "behind your back", is because, you have a contract with the seller which does not allow them to sell to anyone else with in the amount of time that you and the seller agreed upon 30, 45, 60 days, etc...

That makes alot of sense. I think that I get it now. Where do I find these escape clauses and how do I know which on to use? The more you help me with your advise the more confident I get about trying this. My wife brought up a good point. Since this all seems so simple, why dont more people get involved?

Thank you again so much for all the advise. This is a great forum and the concept of a place where people can shoot ideas and advice back and forth for free is great.

Believe it or not, it is simple. Why, may you ask that other people aren't doing this? I am sure there are many reasons, but, until you understand the concept, people are afraid of the unknown.

When you hear of investing in RE, people think that you need $$, well you don't. I think that you realize that by reading Dean's books and being on this site.

You should be able to find the escape clauses in the forums, I believe, under contracts.

Pretty much you want to ad an addendum (your escape clauses)
contingent on finding suitable financing
contingent on inspection
contingent upon partner's approval
etc....

Good luck David, and I wish you much success in REI!

You're welcome for the advice, everyone in the DG Family is more than happy to help out, they are just like us---everyday people---soon to be----RE Millionaires!!

Your right about people being affraid of the unknown. I have been that way for a long time, always playing it safe.

And I hope to be one of the new realestate millionares! Only time, and hard work will tell.

Dave, the reason why i said to use an Attorney was, their are TONS of legalities involved, and the point of getting an Attorney to review your Contracts after you've done a couple of deals is cause by then you could afford to have an Attorney to look over your contracts to make sure you have the correct language, and the so called "escape clauses", it's only for your protection, can you do without using an Attorney? Yes, of course you can, i'm doing it right now along with many other REI but, eventially i will have myself protected, i dont know much about the RE laws so, it's always good to have an RE Attorney, especially for Closings, more on that later, gotta run, SULLY

does anybody use the contracts on Deans site or are you using a realters contracts. i have 3 deals im looking at and i hope to lock one up next week but im not sure about what contract to use, any and all advice, thanks.

Our local board of Realtors sells contracts and forms directly to the public. I just learned that on Wednesday night at a contract writing class. We also spent some time talking about writing contracts for investors. I don't know if the rest of the class appreciated my dominating the instructor with investing questions, but I learned alot.

Al

As for finding buyers, has anyone ever used homevestors? I placed an ad on craigslist and got an immediate email from a guy who says he works as a wholesaler for homevestors. I emailed him back to try and qualify to see how fast he closed, price range, etc.... He simply said:

"Hi Alex, I am a wholesale buyer, any properties and anywhere. I will
buy all
your properties, Homevestors is a cash buyer and fast."

If it sounds that easy why wouldn't everyone use homevestors?

Little properties-In reference to your question, i can tell you what i did, i went on google and looked at a bunch of different contracts and copied all of them, then i just went with the one that benefited buyers/investors the most. You see, the "Official Realtors" contracts in my state are VERY Investor UNFRIENDLY because they generally protect the seller/realtor, NOT saying you couldn't use it, you would just need to edit it to your liking. The one that i use has ALL of my MOST IMPORTANT CONTINGENCIES already built in the contract, then anything that i want to add or me and the seller agreed on gets put into an ADDENDUM that's attached to the contract, SULLY

hey sully...you should share that contract with everyone. So it can been seen. Post it up here, or a link to it.

Sully said "The one that i use has ALL of my MOST IMPORTANT CONTINGENCIES already built in the contract"

Thanks,
D

I would love to, but i have no idea how? I have no idea how to even post a Link or whatever you call it?

thanks Sully, I will google it, wish me luck.

one other thing, where in the contract would i put,..
Contract subject to financial partners approvel.