PLEASE HELP ME WITH AN ASSIGNMENT DEAL!!

I don't think this is a deal, yet. Does the home need repairs? If so, you should factor that in there as well. Typically, we should be getting our wholesale deals at or below 70% ARV, minus repairs and our whole sale fee, giving you a Max Allowable Offer (MAO for short).

As far as contracts go, you need the original PA between you and the seller, and an assignment agreement between you and the buyer. I've also seen it where you can do another PA between you and the buyer, for the price you are charging the buyer (including your assign fee). For example, let's say the home needs cosmetic repairs (Carpet, paint, appliances, etc.) totaling $8k. You then get the house for $92k with the seller, add an assign fee of $5k to $10k on that price, and sell to your buyers at $102K. If they bite on the price (or negotiate with you), get them to do $500 to $1k deposit, have them sign assignment agreement, and you are good. Take everything to title company or lawyer. I hope this helps you.

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This is not a deal. I won't offer any more than 65% ARV minus repairs on any offer I put in. That way I can mark it up 5% and assign it to my cash buyer.

When you offer this low, you are going to get alot of people telling you to shove it. Do not go after just any house. Go after Estates, Pre-Foreclosures, motivated sellers, DOM of 100 or more. AS IS properties. If someone is not desperate to sell, the 65% Minus repairs will not work. The ratio is about 25 rejected offers to get one accepted!

This is not as easy as Dean makes it look on t.v. It is very very hard work and you have to be willing to put your head down and do it.

Good luck and best wishes! I want to see you at the top!

Tammy,

I agree with them, this isn't a wholesale deal at that price but don't let that stop you! Investors are typically looking for 70% FMV or less, meaning chances are you won't be able to sell this fast (its possible but might not be worth the chance in wasting your time), because its more of a retail deal.

70% of 155,000 is 108,500. And thats AFTER REPAIRS. So say you need 20,000 in repairs, I wouldn't offer more than 88,500 (IF THAT) for that property. There are also other fees you might want to include in calculating your offers like Realtor, closing, and financing (if applicable). This is why finding desperate sellers is key, they are more willing to accept your offer.

First step before getting deals is to get buyers. Without buyers, who is going to buy your deal? You can try and market it publicly, but it's much easier to sell something you KNOW someones looking for than taking a shot in the dark.

My suggestion is keep building your buyers list until you get about 25 solid buyers on it, meaning they have money and are actively buying. You'll have a TON of "iffy" buyers on your list, so don't count them. After you've done this, I think you'll know what to do.

Oh and one more thing,

About the escape clause, there are a few things you can do but the main one we use is "Contingent upon partner approval" since I have a partner. So if the deal goes bad, either one of us can say we don't approve and the contract is torn up.

There are a few more ways, but I'm still not extremely familiar with them, so I don't want to give you bad advice. Maybe someone else can help with that issue? I know there are a few forums on here about it.

Good luck and don't give up!

Also, you could go after fire damaged homes. I'm starting to consider working with those, since I found a couple block homes in another town that look like they would be great candidates. The main thing is, the seller of any of these homes needs to be motivated. If they're not, you may or may not get the home to the price you want it, so you can wholesale it to your buyers.

If they owe a little over the ARV, or they owe about what ARV is, or a little under but not enough to wholesale, you can do lease option, subject to, or just about any other creative financing you can think of ~ again, the home owner will need to be motivated. All you'll do, is offer to pay their mortgage so they can move on. Then, find a tenant buyer with a good option consideration who wants a home, has various credit issues (pre-qualify them and fun them through your mortgage broker) that can qualify for a loan in a year (or a little more). When that year is up, you sell them home, getting money up front, a little each month (the tenant buyer's monthly payment will include a small amount that will be apart of them purchasing the home - which is extra profit for you), and the rest at the end (Sandwich L/O). If you setup the deal right, you can get the seller to consider a portion of your monthly payment as a credit toward your purchase. This wouldn't work on all L/O deals, but it's a thought.

That contingency is great, though. I read somewhere (maybe on the website) there were several good contingencies you can use, to get your deposit back (if you gave one).

Tammy since this deal is at 87% I hope you can walk away or you will have to live in it.

Hey Tammy, I'm confused I guess. Did you offer in "YOUR BIZ NAME and/or assigns" as the buyer on the PA? That clause gives you the right to assign. If not you would have to do a double close with your end buyer. Your contingencies should be included in the PA when you submit your offer. They are accepting based on your offer and terms. Meaning your out should have already been inplace. If not, make sure you have an out lined up BEFORE you sign, accept and deposit earnest. Most standard PA's through a RE Agent have an inspection contingency inplace and you fill in the timeframe. So I'd ready carefully and excercise it.

Just a thought.

Thats very true thanks for your advice, I wouldn't be making any money on this deal. I have been putting out bandit signs that say "Looking for Investors" and ads like that on craigslist. I have also been going to Real Estate Auctions and handing out my business cards. Do you have any other suggestions to build a stronger buyers list?

FYI I went to a REAL ESTATE LAWYER for that same reason and they wrote my own personal PA contract for ASSINMENTS it cost me 500$ BUT it took away the cunfusion and that way when other lawyers read my contract and know EXACTLY WHAT I AM TRYING TO DO !!! This was just a self settling move for me and helped me to get over the fear of leaving something out in my offers. Also: that lawyer is part of my team which was a must have for me! It also gives you a piece of mind knowing what your doing IS LEGAL ,so that in itself gave me the drive to keep going so 500$ was nothing because the return on that investment was priceless to me... Thats just how I did it others may differ. Good luck hope this gave you another option. As I WAS, back to REI!!!!

thanks everyone for the advice u all help with keep keepin on

if you made an offer an they accepted it, even at a lower amount, it is too late to put escape clauses in the transaction. That must be done BEFORE they accept. You can't change a contract unilaterally after acceptance or it's not a deal.

Several comments about the buyer's list and they are all great. Having an adequate buyer's list and "qualifying" them is essential. How many buyers is a common question. The minimum number would be four to five if all of them are active buyers (two or three properties per month). If your buyers are only doing two or three properties a year, you need to have a minimum of 20 of those buyers on your list. Qualifying the buyers means you understand their investment criteria, resources and what they are willing to pay so that you can be efficient in finding the deals that will close. If a deal doesn't close you won't get paid.