assigning a deal

What happens to the second mortgage when you purchase the lien on a property from the 1st lien holder? do I negotiate with then as well? at the same time?

The second lien would have to accept nothing or you would have to work out a payoff amount for them. Some first mortgage companies will require you to work with the second before you submit a payoff to the first.

I have found a really great deal with $130,000.00 in equity on the MLS. Property is listed with Real estate. I cannot purchase the property because of my credit ( would be a great deal) but how can I assign it and make a profit? I know how to do assignments directly with the owner but how can I do it with a realtor as the middle man? Any suggestion?

Carol, Working with a sellers agent is no different than working with the seller directly. The Agent is marketing the property, helping with negotiations, and overseeing the closing for the seller. It may be eaiser with the agent, because they take care of all the details and provide the paperwork. If you allow the sellers agent to represent you, they have additional incentive to help you close the deal.

Al

Having a buyers list is one of the best methods in this business. Creating ghost ads and placing them in your paper, nickel ads, on the internet and other areas that are dedicated to marketing to your area can help you create a successful list. Just think how comforting it is to know that you have a buyer before you have even purchased the home yourself.

I've been trying to attract investors to build my list, but, I am mostly running into people such as myself. They also post the "We Buy Houses" type of ads and are actually looking for investors themselves or they themselves are wholesaling/assigning, so, there really is not much $$ to be made on either side.

Any suggestions?

I've already set up my business cards, and working on my website and really want to get started. I have even found some excellent deals that can prove to be very lucrative!

Any suggestions, comments, and whatever else you may have for input would be greatly appreciated!!!

Wow, does that sound familiar, lol, I think it happens to MOST investors so dont feel discouraged, i'll tell you whats helped me a LOT, do you have any DIG Investor meetings around where you live? If you do, it's absolutley imperative to start going, because it gives you a fighting chance to market your DEALS and you'll meet REAL REHABBER'S to buy your WHOLESALE deals, plus theirs usually HARD MONEY LENDERS that go too. The only other thing that i can tell you is to start marketing your "NEW" business, you've got to get your name out there; start Advertising in your local Newspaper, put up some Bandit signs, hang up some flyers/business cards in your local food stores/pizza parlors, mass mailings, etc. SULLY

Hey Sully,

Thanks for the info, it is much appreciated!!! I do have one question (ok many, but, I'll stick to the "1" for the moment) lol

What is a DIG Club?

Hi everyone

I really have been running with this wholesaling assigning concept and have 2 properties.I did want Carol did and posted an ad for landlords to sell their properties in cragslist and got a landlord that has a ton of properties to sell but Iam starting with 2. I got the info from him and it was mostly correct info but when I checked it out on zillow for squarfootage it was way off. Is there a better way to find it? I believe the tax accessor's offic? They charge a bit of money to use their site and its far away. I was looking for maybe a free site that might have this info accurate. Thanks you guys for all the great info in I can't say that enough times really! Ed

Hi Ed,

Do you have a realtor that you work with? They can check the MLS to see if the property is in there. Also go look at the property yourself and ask the owner for the information. They should have that info.

Be careful with Zillow I have found it to be inaccurate on allot of things. I use Zillow just for a general description or idea of what i am dealing with. I also use www.propertyshark.com for some of the info like when the property last sold and what it sold for, taxes, owner info etc...

Hope this helped.

Ohh propertyshark does'nt do Michigan.. That's ok I do have an agent or 3 but they are not as fast as I am in getting info. I'll have to be more patient with them.

What about Realquest.com, Are you a member? If not you can get excellent COMPS and homeowner info(including accurate sq.ft.) so i would check www.realquest.com, SULLY

What did you put the ad under? real estate for sale?

WERE CAN I FIND BUYERS FOR SOME PROP THAT I FOUND THERE ARE 4 TO 5 OF THEM THAT THE REALTOR HAS FOUND CAN ANYONE HELP ME I HEARD FROM DEAN THAT MATT LARSON DOES THIS ALOT I JUST WANNA FIND SOME CONTACTS TO FIND THE BUYERS SOME HELP ME I HAVE THE PROPS I DONT WANNA LOSE THEM TO SOMEONE ELES

This is a great question. What we would need is information about the property.
- What are they worth? How do you know?
- What are the repairs? How do you know?
- What are the specifics of the properties? SQFT, Beds, Baths, etc.
- What do we know about the seller? Are they motivated? Are they creative?

I was wondering if anyone has had any experience with a company called Home Vestors? It seems to be a franchise that buys distressed properties. Has anyone used them to assign a property to or purchased property from them?
Thank you!

I actually work with some of the Home Vestors wholesalers here in NJ. They actually do not do much purchasing, mainly wholesalers. They lock up properties and sell them to their buyers list. It is a franchise.

1) Do investors just pay the balance on the loan to obtain the property from seller or its just a negotiation thing to obtain the cheapest price for th property?
2) When a price is agreed up on do you add the assignment fee amount to total of the agreed price or do you add it when you are doing the assignment contract and tally the price of house and fee together. To put on assignment contract.
Thanks Kingjuss,

1) It depends. Often nowadays paying what is owed on the house is NOT a good deal for the investor. And that is a problem that everyone (banks, investors and homeowners) are wrestling with.

2) The assignment fee could either be paid out of the investor's pocket or paid by the escrow company.

Hello Rina! I just read the comments on this by me being new to Dean's List of Students. You probably received your answer on this topic.

I have in my possession a MarketWatch Router dated 9-27-2007 that states "The Ways and Means Committee, the House's tax-writing panel, approved a bill under which homewoners facing foreclosure won't get stuck with a tax bill if part of their debt is forgiven by lenders. I printed this while working shortsales last Summer because I wanted to share this with my homeowners. I made it apart of my shortsale packets.

Again that was more than a year ago and you may have evidence of this by now.

Just wanted to help!

Rodney

Thank you for your input. Good to have you on board.

Rina

On trying to find an assignment deal. Do you base the deal on the balance left to be paid for the house. Then if its 30% of the true ARV value on that house. Then that would be a good deal. Right/ wrong.... ??? Someone break this down for me please. Give me a good case in scenario with numbers that describes a good deal and bad deal. Please someone guide me right. I think I have a few good deals. But am confusing certain pieces to the puzzle....
Kingjuss Appreciates It,

I replied to an ad for a "We buy Homes " type place. I asked him if he was investor, weather or not they pay finders fees, and what type of properties they are looking for. Here is the response I received...

I am an investor and work with several other investors. I pay finders fees in a couple different ways- I also am a trainer for other investors in my company and make large comissions doing so- of which I pay finders fees. As far as RE, I have been receiving deals under 50% FMV- so if you have something I would take a look and could forward on- depending on the deal, location estimated fix-up

I really am trying to figure out what to say when I reply back

Any assistance is appreciated as I am nervous about getting going and what to say.
Thanks again
Amy

This is the crux of the answer right here. You need to know 1) What locations he is interested in. Could be "all" I guess.

2) What his max ARV (After Repair value) is.

I am pretty sure 50% is BEFORE repairs.

Ok so here is teh deal I am thinking about proposing. (providing things check out as stated )

Property value = 249k top and 204k bottom
Owner owes balance of 106k

Using Deans back in worksheet

not seeing the inside yet I am assuming ( I know very dangerous )
Repairs 40 k
closing costs and fees 10 k?
and my profit 40
leaving the investor a potential of approx 100 k give or take, if the prop is sold at around 249.( whic woudl fall into his 50 % need correct?

So the investor that responded back is potentially interested in my area, but since I have not done a deal yet I am really gun shy on what to tell him, when he asks what it is I do. Do I tell him I secure/lock up properties for reassignment to interested investors? This particular investor seems to have a great network of investors across the country ( or claims to anyway ) in all states, so if he is legit, I really want to ensure that I create a good relationship right from the get go

Thank you for all of your advice
Amy

What is the best approach to getting in contact with the home ownwer? I wrote up a ccuple of letters to home owners and put it in there doors. Well one of the ownwers were home and saw me coming up to the house and came outside. I told him Iwas interested in the house. Her let check the house out, gave me a nice little tour. Problem is he was realy caught on up the realtors telling him. Dont show the house. So he not up to taking offers, he wants to go throught realtor he has. Someone let me in on a little insight about situations like this. Its a great deal if he would open up a little. JHouse is up for foreclosure.I asked him about it, he act like he didnt know what foreclosure was. Strange but I just went alongand eplained to him what it was.

Thanks Kingjuss,

form San Diego California being able to do these assignment deals? Preferably from REO's

Okay,
So I decied to take a dive into all of this. I bought the book about six months ago and it took me till now to get started lol. I want to start really small and do some basic reassignment deals. Here's are some of the questions I had--

1)Do you need to be a licensed real estate agent to be able to do this? I contacted several investors that I would possibly reassign deals to and one of them replied, saying that they offer finder's fees to licensed real estate agents. Is that the norm or just something that particular person chooses to do?

2) In order to get the "fixing-up" costs I would assume that I would need to do a walk through with a handyman/inspector. How much would a house inspection typically cost and would that be something I would need to pay out of my own pocket?

3) In the book, it says that location is the most important part when idenifying properties. Are there any websites out there that I can go to in order to find information on which areas are growing as far as jobs, new homes being built, etc, etc?

4) I understand the contract you get in order to lock the house up. My question is...aren' t the sellers going to be interested as to how you're paying for it, whether or not a bank is involved, etc. Wouldn't that type of stuff typically go into the contract?

5) What type of contract would I need to draw up with the person that I'm assigning the property to in order to ensure that I recieve my finder's fee? And again, is this a legal thing to do without having a real estate license?

Thanks in advance,
Eugene the newbie!

Where do you find the investor after you find a property.

First of all a good deal starts with a motivated seller. See sistreat's topic http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...

If the seller is not motivated to sell then you will more than likely not get the best deal.

Here is how I make an offer...

I take the ARV of the property
Subtract 30%
Subtract my fee (10k)
Then I subtract repair costs
The balance is my offer

My mentor told me "If you are not embarrassed by your offer then you are offering too much".