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The question looks like can I assign properties listed with Realtors? The answer is yes. Yes you can. The Realtor acts as the listing agent for the name(s) on the buyer’s line. You will notice that there will be two names on the buyers line - yours and "and/or assigns". When you assign the contract the Realtor will act in behalf of the "and/or assign". The realtor also gets paid from the seller as though it was just any ordinary transactions.

Also, bank foreclosures can be assigned but you will usually do the assignment a little different such as selling an LLC instead of assigning.

Realtors are generally paid by the seller. If you are working with a Realtor to show you properties you will find that the properties you see will be listed by other Realtors.

When sellers hire a Realtor they sign an agreement to pay 3% to the selling agent and 3% to the listing agent. Your realtor will get paid from the seller. You do not need to worry about the money because it is not your costs. However, if you buy a home, fix it then plan to sell it you may hire a Realtor. If this is your case you will want to account for their fee when you make the offer.

Generally, the best way for most people with little money and credit to start in real estate would be to work with assignments of contract.

Assignments of Contract are easy, fast and very productive.

Essentially you will find a seller that is motivated; you will give them an offer; when the offer is accepted you will sell (assign) the contract to someone else. That someone else will pay you a fee to purchase the contract and they will purchase the property.

The profit is usually about 4-5% of the value of the property. Also, some of the best buyers to work with are investors. They can close cash and quickly often times.

I have an REO that is LP 87K. MA is 150-160K. I offer 75K. I pay the RE agent 5% fee from whatever I get from the end buyer if he accepts the property as is without any repairs? Is that correct? I have a POF letter, so I understand that it must be a double closing situation. Thanks in advance....Pete

Besides thumbing through the phone book (seriously??), How do I find a decent RE Attorney in Orange County, CA. I don't really know anybody in the area to get a referral from.

I found a company who purchases foreclosures in bulk. They sell all over the U.S They told me that they pay finders fees. They told me what they do is first come first serve basis. Here is what they emailed me back: We are a cash for deed company, so it is first come first serve. We send you a contract, and once you send it back, the property is held for you for 3 business days while we wait for a 10% deposit (or full payment). If you go the deposit route, you then have 10 days from that point to finalize your payment in full.

If you finance the transaction, you can put 35% down...(10% within 3 days of contract, and the remaining 25% within 10 days). The property on Natham has a three month financing term. I can sometimes get that stretched to six months with an aggressive offer, but it's all up to the powers that be.

I guess what I need is some kind of direction. Do I need to let my buyer know he/she needs to put down a deposit? Has this type of deal been done before and if so what is the procedure like? Do I need to send the company a contract of my own? What kind of contract do I need to have for the buyer?

I think I am getting the hang of the instant equity thing but there are 2 sticking points I would like some help with.

1. Building your buyers list. I have done research on landlords and non resident property owners as well as "Frequent flyers" on my county assessors site as well as in rent listings in the local papers. I have about 12 possible end buyers to contact (including one that I found by calling on a FSBO that he had when he told me he had 2 more properties available) My question is - how do you approach - phone, letter? What would you say as a newbie starting out? I know I need to find out types and areas they are interested in, % below FMV they prefer etc... but how do you start the communication and conversation.

I have no problem talking to owners - it is asking people for money I am unsure about.

2. Title search and due dilegence. How much can you do yourself at the county courthouse without employing a title company or attorney? I have 0 to invest at the moment, so if it is possible to do the work myself I have nothing but time on my hands. What do I ask for to find info on leins, mortages etc at the courthouse?

I am sure I am not the only one with these questions, and I am sorry for being so longwinded.

Trish

I am almost done reading the book "Be a Real Estate Millionaire" which by the way it is very informative and easy to read and understand. I almost feel as though 'Dean is speaking directly to me. Everytime I visit my mother I go on the computer and log to Zillow.com. I came across a house close to my neighborhood that the owner wants to get rid of to avoid forclosure. I went asd far as to send the agent an email for a showing. Can I the lease option in this method? I am currently reading this chapter and I think that it is duable, right? it is a great deal if I may say so myself.

I am new at this but I am in need of some guidance. I currently live in the Bronx, Bronx, NY.

Hope to get guidance from my new found family.

Msrios2515

Hi,
I'm having some challenges in Florida with the concept of assigning contracts. The real estate agents I'm associating with say that assigning contracts is illegal in this state (and that banks will not accept them). It seems very difficult to find a real estate agent who will acknowledge the concept, let alone want to even work with investors like myself who are interested in assigning contracts as a way to begin their investing careers.

Would it be easier to try matching sellers w/buyers and receive a finder's fee, instead of attempting to assign contracts? Also, where can I find a copy of an assigning contract?

Thanks.
Andrea
Eager to get started in Florida.

Hi, I had previously signed up with you and received the book and online tools. I find myself now as a candidate for one of your students, as we face foreclosure on our Stamford, CT condo. We are willing to talk with a qualified person who can negotiate with us and our bank (Bank of America) to purchase our property at a discount and relieve us of our mortgage indebtedness. Can you prove the effectiveness of your program with a willing owner? Thanks, James

nstreet wrote:

"No Money Down Examples

Here are a few examples:

Purchase: $330,000
Expenses: $59,900
Value: $420,000
Purchase the property with a hard money lender covered every part of the purchase. In fact the expenses and payments can be covered by the lender. No payments made until the property is sold.

Purchase: $250,000
Pro-forma Value: $488,000
Purchased the property by keeping the original loan in place of $157,000. The seller created a second note of $93,000. Money paid - $1,500 for closing which is paid from a line of credit at the bank.

Purchase: $150,000
Value: $220,000
Purchase the property with a conventional financing for 97% of the purchase. Get a partner that pays the 3% down.

Purchase: $80,000
Value: $120,000
Lease Option the Property with $100 dollars option credit money (from a line of credit). Sublease the property for $3,600 option credit.

Purchase: $60,000
Payments: $720
Value: $100,000
Homeowner transfers ownership to you with a quit claim deed. You make the payments on their loan..."

This is terrific information and is of great value to me as a new investor. I am moving forward to making my first deal, but I am working hard to understand learning the numbers game. I am a visual learner so seeing these numbers does help me. However, may I ask you to take each of your examples a step further to show what the next step would be after you have locked up these contracts? That is, how and what monies the investor would actually make in these scenarios? I am assuming (maybe not correctly) that in these examples the investor is not holding these properties but selling, assigning, leasing or something where the investor makes his/her profit and gets out of the picture.
I would like to see when/how/amount that me, the investor is making on these deals.

While very good examples, I can only see the first half of the deal (i.e obtaining the property), but I can't see the second half of the deal (i.e what I do after locking up the property and how I make my profit).

Thanks for your help. I hope you can show me this and I'm not asking too much!

I am not sure what you are asking? What is LP, MA? I am not sure what is to be correct?

Please take some time and fill out further details that you are looking for.

As far as getting a good real estate lawyer my opinion in is that you get referrals from other investors. The great thing about our business is that other investors have already taken the time to find great lawyers.

Real estate clubs can be a great way to find lawyer or ask about finding lawyers. Many real estate clubs have time that you can announce what you are looking for to the group. You could simply stand up and announce you are looking for a lawyer. You can also, as you are speaking to individuals, ask them who they use. Often, you will find a common lawyer amongst the investors.

[/quote]
Would i be able to use it in a tax sale and can i utilize it in a lease and rent it out deal? I really appreciate the oppertunity to ask these questions thank you for putting this kind invitation out here.sincerly,lifestriver65[/quote]

From my understanding, and I say this not as a veteran, VA loans cannot be used to purchase tax liens. As far as a "lease and rent it out deal" I am not sure what is being asked. You do not need a VA loan if you are purchasing the property using a lease option until the option is going to be taken. If you are planning to purchase the home with a VA loan then lease option the property the lease option has nothing to do with the VA as you will be doing the lease option after the purchase.

Just keep in mind when you do "subsequent purchases" your fees will increase.
VA can be a great way to finance property but is often used for owner occupied properties. You will want to check with the VA to see their procedures about purchasing non-owner occupied properties in your area.

I need to make sure that I understand. You have a company that purchases bulk foreclosure properties then sells them. If you bring them a buyer they will pay you a fee. You are planning to make a fee from the selling company and from your buyer(s) when you assign the contract. Did I get it correct?

If you are planning to assign to your buyer it sounds as though they will need to put a deposit down. Does the selling company allow for assignments of contract? If not you may need to have your buyer(s) sign a non-circumvent agreement so that they do not go directly to the seller without paying you. This way you could get payment from the buyer and sellers (if that was what I read correctly).

Why cant you go to one Title Company for the buying closing? and then go to another Title company for the selling closing?

So lets say you put 3k in your new business account.
Does the bank loan you an equal amt. of what you have in your account? or what amount do they loan you?

Coach,
The way i understand it,As long as i have a property under contract then i can market,sell,etc.If i did not have a contract on a property and do not have a RE lic. then i would be breaking the law by trying to sell a property.

For example:You have a property that you can not lock-up by yourself so you want to show what you have with your end buyer,So you go ahead and sign the non-disclosure & non-circumvent agreements with your buyer.Now if the buyer goes behind your back on the info that you shared,I guess you can sue them?

My question is:From what i have wrote,When you offer property to someone without holding a RE lic. or do not have contract on the parcel,Are you breaking the law?
And with these agreements would you actually try to take the other party to court if they broke the terms or are these contracts a scare tactic and you would not really follow thru with taking action?
What i am thinking is if i take legal action with my buyer,They can stick it to me by saying i was practicing with-out a RE Lic.

Your thoughts coach

The question you ask is a good one. The problem is that when you have a property under contract you can market the contract not necessarily the house.
However, that being said we create ghost ads all the time that market homes that don't actually exist. You could sell the home you have under contract as a general ghost sale.
That said you would also want to check with your local laws to make sure of what you can market.

When doing a double closing technically you could go to two different closings / title companies if you wanted to. One of the biggest reasons to use a single title company is to keep costs as low as you can. If you use a single closing company they often will give a discount on the closing costs. They may just charge a single closing or even discount both of the closings enough to make the double closing a viable option. Pay too much in closing cost and suddenly the double closing may not be enough in profit to be worth the work.

Reading your posted question I am not sure I fully understand the question. Nstreet may have more to add later. What is being explained is that you have several options when purchasing properties. What you do whit the properties after words is up to you. Profit has not been gained yet; just the option to purchase has been given. It as stating you purchased a home with a loan, you own the house ... now what ... this is your option.

From the content of your question it looks as though you are referring to the information that I shared during the EDGE conference.
If you put $3,000 in the bank and ask for a loan you will probably get a loan for $3,000 from the bank. The reason is that this creates a security for the bank. They will often feel comfortable giving you the loan because if you fail they can just take your money and they have lost nothing.
Eventually when you have done a couple of loans with the bank they may allow you to take more money out then you have as the security for the loan.

I agree with Ddowd's information. What you do with the property after you purchase is up to you. You could simply sell the home, rent it or lease it. The options given are just for the purpose of purchasing the home. If you are looking for more information, maybe, on ideas you can do after you have purchased the home we can add some more information for this.

Is this what you are looking for or was your answer given in our explanations?

I wanted to bring this forum to the forefront again. This forum I believe has been a great guide to many seeking answers from one of Dean's success coaches. Maybe, we are not as cool as Matt, Rena, Greg, or Joe but we can give good insight to questions you may have.
If you have a question for one of our coaches feel free to post it here and one of our experienced coaches will answer your questions.

Its seeems double closings with bank owned homes can be tricky considering the banks like to use their own title companies. Any insight on this. Ways to get around this or beat them that their own game?

Find out what title company the banks prefer to use and talk to them about doing a double closing. The title company still may be familiar with this type of transaction.

The other day I was reading about a letter posted on the blog about a guy writing a letter to a real estate agent using some of the sample letter posted in Dean's book ( Profit from real estate now) coupled with his own words about the agent disclosing a list of buys in the past 6 months. I thought that was a good start for me to pick up on being that I'm new to this. However, I'm having problems finding it I know it was with a guy saying something about buying property and everyone stated that he might have been in over his head. Anyhow if someone can help me with this or maybe something similiar for me to disclose to an agentI would grealy appreciate it.