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Assignment of Contract w/Financing?

Posted on: Thu, 07/19/2012 - 12:33
Assignment of Contract w/Financing?

Is it possible to assign a contract where the end buyer is financing the property?

Example:

A couple is pre-approved for $90,000 for a home purchase. I find a property, and get it under contract for $75,000 with a FMV of $95,000. I want to assign it for a $2,000 fee.

Questions:

1) Can I assign that contract to the couple?

2) Would the couple have to pay me my assignment fee separately? Or, can they roll it into their financing?

All advice is appreciated.

Thanks,

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Stephan Roberts
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Posted on: Thu, 07/19/2012 - 13:14 #1
Assignment with financing

Stephan,

My thought is that since they are not 'cash buyers', their mortgage company won't allow this type of transaction. I would think this would require a double-close, so that you actually own the property. However a double close would most certainly eat of $2k in profit rather quickly.

Good luck with this transaction. Keep at it.

--Walter

'If it is to be, it is up to me'. -Unknown


Posted on: Thu, 07/19/2012 - 14:33 #2
First in line

Yes.... Get a NON-REFUNDABLE Deposit from the buyers plus any EMD put down from your offer. Have the Sellers sign the Discharge of Contract.... and draw up the contract for the new buyer directly to the sellers.
There are other ways but it is best to start here.

DG


Posted on: Thu, 07/19/2012 - 15:49 #3
Thanks...

Thanks for the suggestions guys. I really do appreciate the input.

__________________

Stephan Roberts
"In absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia!"

Here is a FREE property analyzer I've found:

https://tvallc.infusionsoft.com/go/RehabLite/sroberts/

It's a great tool to use to help analyze your deals (and did I mention it's FREE)! But, you really should spend the $97 and get the full premium edition! IT'S AWESOME!!


Posted on: Thu, 07/19/2012 - 19:09 #4
Best of Luck Stephen!

Keep at it. Good luck!

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