Seller Accepted My Offer

but I will assume that you are buying it from him at price X so you can assign it it to another buyer at price Y.

Generally speaking, you enter into a purchase contract with him as the seller and have a closing date as far into the future as you can. You also have clauses in the contract that this deal can be cancelled subject to the results of a homeowner inspection;and, it can be cancelled if my partner doesn't approve the deal. Then you sign the contract, give him $100 as earnest money and try to find your buyer. Once you do, you assign your contract to him for a fee OR you can choose to do a double close whereby you buy it and then immediately sell it to him using transactional funding. I hope this helps but remember this is just a quick review of the major steps involved. Good luck.

Taking action! I am glad that you are out there talking to home owners. It is really tough however to answer your question because your description is kinda vague. I assume you have read the books and if so you need to go back through the chapters dealing with that. On the left side of the page under Student Resources click on Forms and Docs and all the contracts you need will be under that. I hope this helps.

I'm getting a pretty good picture on what to do next. In terms of those clauses though to include in the purchase contract, how exactly would I do that? Do I take it to my RE attorney and explain to him what i need included in the contract? Also, what is the difference between assigning the contract for a fee and doing a double closing?

Pure assignment = You buyer paying you a fee and taking over your position in your contract

Double closing = You buy from your seller and the seel to your buyer. (A to B) and the (B to C) You are the letter B

o ok. so if your doing an assignment, you dont have to wait till closing to get your money right, whereas in a double closing you have to wait until the deal actually goes to closing to get your money. I heard that when dealing with mostly REO's, double closing is a necesity because banks do not like assignments, is that correct?

If you lock up an REO property you do not need to use TF if you lock up the property under an LLC. With an LLC you can just add the end investor to it for a fee or you can just sell the property to the investor and back out al together. In cali where it costs $800 for an LLC it is a little less worth the cost but here in Colorado it only costs $50 so I have 3 of them at any given time. Banks do not like assignments because they want to know and control who the end buyer is but if the end buyer is the LLC it does not matter if that switches hands. The same goes for Land Trusts although I dont have any experience with that side of things.

you can see forms and docs on the left column on the homepage of this site; also, there're forms in DG books ...

wishing you great success!
Valerie

Several major lenders are starting to require that you purchase in your name and then put the property into your LLC after closing. They are figuring out the LLC game also unfortunately. Many lenders still permit this, but I think it is a matter of time. Just like REOs being non assignable, was not that way several years ago.

Have a back up acquisition strategy just in case!

Michael Mangham
MD Home Acquisitions LLC

don't you wonder why it matters as long as they are gettting rid of the property. It shouldn't matter to them if it is assigned or the LLC is sold in whole; it doesn't change the price which they agreed to in the sales contract. Just my two cents.