OfflineAt least I now have 3 that will accept and/or assignees contract in my area. This works for me so maybe it would work for you too. Now this if for FSBO's...and it helps to be a great talker to do this.
(This is a way to get talking to the escrow agent and making a friend...always make a friend first before asking them to accept your assignment contract)
What you do first is call a title company. Get in a conversation with the escrow agent first and let her know you want to find out how much exactly it costs to close a property for XXXXXX.
Tell them you need a break down on what each thing costs so you can present the exact figures to your investors.
Then you may ask them how long they have been in the title business...how they like it....etc..just some friendly chat at first.
Tell them you are looking for a local title company who you can send all your busines to. Tell them you are wanting to start closing about 3 to 4 deals per month and need a good title company to work with(They will ask you about it at this point)
Then tell them that you are a wholesaler and work with a lot of buyers/investors who have you out finding properties for them since they are too busy to find properties themselfs.
Tell them you find the property and lock it up with a option to purchase contract for 30 to 60 days and bring in your investors to look at the property and one of them will come in with cash to buy the property.
Tell them you tack on some profit for yourself for all your work and put it on your assignment fee contract.
Tell them you are looking for a local title company to collect your assignment fee for you and close the deals.
(Now here is the BIG important statement you must make to them)
Tell them you have an assignment contract that all 3 parties involved will sign. Meaning the seller of the house is aware of how much you are making for your assignment fee, you will sign it and your end buyer will sign your assignment document stating that he/she also knows you are making XXXX amount of money for your assignment fee.
When it comes to title companys all they want is diclosure. They want to make sure everything is up front and no one is left in the dark about any transaction. It is for protection for all involved in the transaction.
I have the assignment fee document that has a place for all 3 to sign. I will try to attach it and hope it works. (Look below)
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Assignment of Agreement
___________________________(hereinafter “Assignor”), the Buyer under an agreement dated __________, 20___ (hereinafter “Agreement”) by and between Assignor and ____________________________ (hereinafter “Seller”), hereby assigns all rights, title and interest in said agreement to
____________________________________ (hereinafter “Assignee”) for the sum and consideration of $_____________ received by Assignor.
Assignee agrees to perform all covenants, conditions and obligations required by Assignor under said Agreement and agrees to defend, indemnify and hold Assignor harmless from any liability and obligation under said Agreement. Assignee further agrees to hold Assignor harmless from any deficiency or defect in the legality or enforceability of the terms of the said agreement. Seller and Assignee agrees and understand that Assignor is not acting as a real estate broker or agent in this transaction and is not representing either party, but rather is acting as a principal in selling his/her interest in the above-referenced agreement to Assignee.
Dated this ________ day of ______, 20___
______________________________
Assignee
______________________________
Assignor
I hereby accept and approve the terms of this assignment and agree to hold Assignor harmless from any further liability or obligation under our Agreement.
_________________________________________________
Seller
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Hello there!
I always know that when I see a new forum topic started by you I am going to read something really worthwhile!
I was telling a new person today to search out your posts as it will be one of the best things that they can spend their time doing on this site!
This was great!
Angela
Well thank you miss Angela! I am glad you enjoy my posts. I find a lot of good information out there and like to share with all of you.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
This is Great! Thank you
So, is this contract cutting out the need for a double closing?
So, is this contract cutting out the need for a double closing?
Now a double closing (back to back) is something different. It is handled differently.
With this assignment contract you collect your assignment fee or the title company does...then you are out of the deal and on your way to your next one.
With a back to back closing you are buying the house in YOUR name by using your money or transitional funding (Coastal Funding's one day dough you rent for one day only) and on the same exact day that you buy in your name you also close the same day with your end buyer.(within minutes or a couple hours)
When doing a back to back closing no one ever knows what you make except the title company and anyone you choose to tell.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
... have you ever used this company for anything?
I have never used Coastal. I talk to Eric all the time. He is standing by with the funds for any of you who need to use them. So far I just collect an assignment fee.
Also my friend Ryan Hollingsworth has a transitional funding company. He has access to hundreds of lenders and banks. They also do the one day back to back funding for our deals. They will send you the Proof of Funds letter too.
If you read over Ryans site you will see other great things he has for us wholesalers. It is not limited to back to back funding....
Check it out................
http://www.totalrei.com/index.html
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Gonna check out Ryans site tomorrow. Genreally I am an early morning person, I just do not fuction well this late at night! Thanks for the link (I did click on it but I am too tired to focus.)
Sistreat, thanks for another piece of the puzzle.
TDavis
Hi sistreat...
I am a rookie, I just joined Dean Success Academy team in Jan,09.
I have been reading Dean's New book Profit From Real Estate Right Now!!
I love it... I have been taking notes and keeping up as much as I can...
Now I want to share with you. I was in search for a Title co. here in NYC,
I called & asked my questions, ok I ran across a Title company who told me yes we do Assignment of Contract, they then put a Real Estate Lawyer on and she asked again what I needed, I asked her again do they handle Assignment on Contract?
Double closing? or Simultanous closing? she did not understand that last two but she understood very clearly about the Assignments on contracts.
she explained to me oh yeah we handle those and I can walk you through it and even connect you to some broker or agents... We set up a meeting, where do I began
when I arrived, this Attorney did a super turn on me!!! she asked questions, I told her I was looking for motivated sellers and I need a Title or Attorney to handle the Contracts for me...I had my question for her also but never got a chance to ask her; she said OH WE DON'T DO THAT HERE NO MORE!!!
DO YOU HAVE A BROKER LIC. IF NOT YOU CAN'T PUT HOUSES ON CONTRACTS AND YOU CAN'T LOOK AROUND FOR HOMES IF YOU ARE NOT AN AGENT!!! my mouth dropped.
Because over the phone she told me the total opposite...
she nice/nasty....I was so hurt, she even told me you are wasting your time...
you will never be able to do assignment of contracts any more no with this horrible R/E TIME we are having...you have to go back to school and get your Agent & Broker Lic... SORRY!!!! I left her office and Yes I did cry, I was so scared...
I went home and call up my coaches and they lifted up my spirts...they told me you just hit a stumbling block and what are you going to do...you will climb over it....
YOU CAN AND WILL DO THIS!!! DO NOT GET DISCOURAGE....
they said post online with our family of friends and ask can they help you with a Title or Attorney in NYC.... get started and don't give up....
SO HERE I AM .....PLEASE HELP THIS ROOKIE....THANK YOU.....
Tee Scott
I want to welcome you first of all. I know you will find a million dollars worth of information here on the board and also make many investing friends.
There are assignment of contracts performed everyday in NYC. Don't listen to that attorney. Not all of them are informed as to how investors work.
When you lock a house up you have a vested interest in that contract. That goes on everyday in the real world weather that attorney is aware of it or not. You are in the best time every to assign contracts. The housing market is soft and investors everywhere are taking advantage of it.
You just ran into a very uninformed negative person...which there are many out there.
In this business you are going to have to get tough and confident. You are going to have to let comments like that roll off your back like water off a ducks back and go on and press onward with your goals. It is great that you are enrolled in the academy. They will be a blessing for you if you work really hard and do exactly as they instruct you.
Quit listening to idiots and keep your eyes on the prize! LOL!
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
I found my Title Co.through another wholesaler.I called some bandit signs "we buy houses" and she gave me who to contact, for me to get started.So start networking with as many people as you can in your area and it will lead to everything you need.
Jason S.
San Diego, CA.
**All CASH House Buyer!**
Refer Us To Neighbors, Friends & Family, Earn $1,000
LIKE my FB page http://www.facebook.com/JandBHouseSolutions
Great info. I am getting ready to start advertising for buyers and calling up some title companies near my home to find any that handle assignments
"Saying I can't or I will is a world of difference that will set you a world apart" (ME) Edwin L.
"Where there is a will there is a way" God
"Knowledge is only potential power, taking ACTION it is the real measure of intelligence" unknown
"True insanity is doing the same thing over and over and expecting different results" Einstein
I have found this info very useful Sistreat. I'm a newbie real estate investing and will surely try this method for my self. One way or another, you will hear from me agian on how effective this info is.
Try and find a REI club to join in your area. The people you meet there will have some great local contacts for you I am sure.
Angela
I recently joined Dean's site after reading a copy of his book BARM which my sister bought. Having obtained my OWN I am now ready to venture out. Like a few of you, I have no job, and no money, so I have been looking at some of the posts here to see how best to start. I live in Western New York,and there are a lot of foreclosures here. and I like the fact that I have a forum where I can get my questions answered, and I know I will have a lot. So now, all I have to do is go out and find my deals and my investors/buyers for a fee. Well, here is to SUCCESS, not just for me, but to all my fellow investors, especially the NEWBIES.
Think and Grow Rich
It is very important for all of you to be able to expalin exactly what you are doing in an intelligent business manner.
The way you expalin it to a title company in "title Company jargon"..........they don't understand anything else. LOL!
Tell them you and the owner of the house both sign an Option To Purchase Contract. You have 30 or 60 or 90 days (whichever you put on the contract) to either go through with the option and purchase ...or back out of the option.
You tell them that the owner is aware that you will be bringing in your investors to look at the property for a possible purchase. Tell them that all parties agree that you will be assigning your option over to the end buyer for a profit. It is fully disclosed to all involved. There is a assignment contract signed when a buyer is found and it is signed by all 3 parties involved. The home owner...the assignor...and the assignee (end buyer.
Just make it to where they will understand the process. All they want is full disclosure for all involved.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
I really appreciate all of your advise....I will keep it moving I promise...
I will search hard for that title company in NYC; I will contact those WE BUY HOUSES phone numbers and ask do they have any leads on some title co. and I will also try to get with a REI Club out here in NYC also... I will keep you all posted thank you once again for welcoming me....
Let all make money together......
God is so good....
Tajuana
If there is full disclosure, whats stopping my buyer from going behind my back and locking the property i told him about?
Javelle, what keeps the end buyer from going behind your back and locking the property on his own, is the the fact that you already have signed a purchase agreement with the seller inserting your name as the buyer,followed by the term "and or assignees" this locks up the property in your name for the specified time period ie; 30 60 or90 days whichever is your stipulated amount of time before you provide an end buyer for the deal.
TDavis
This is the other document that keeps someone from going behind your back and tryng to steal your deal. It is the Notice of Option that you file at your local county recorders office. It cost $40 here in Arkansas to file it. Each state is different. The court clerks will tell the person trying to steal your deal that it is under contract so they cannot buy for xxx amount of days (whatever time you put on the contract).
NOTICE OF OPTION CONTRACT FOR SALE AND PURCHASE
This NOTICE OF OPTION CONTRACT FOR SALE AND PURCHASE (the “Notice”) is made, executed and delivered as of the _____ day of ________________, 20___, by and between __________________________(“Seller”) and ______________________________(“Buyer”).
The Seller grants to the Buyer an Option to purchase the real estate as described below (the “Property”):
Property Address: __________________________________________________________________
City, State Zip: __________________________________________________________________
Parcel #: __________________________________________________________________
The term of this Option Contract is from the _______ day of ________________, 20___ and expires on the _______ day of __________________, 20___. The Buyer can execute the Option Contract at any time during the Option Period.
The Option Contract may be terminated and this Notice released and satisfied of record by execution and recording of a Release of Option Contract signed only by the Buyer.
The Option Contract for Sale and Purchase contains the following Representations and Warranties:
“6. REPRESENTATIONS AND WARRANTIES: To induce the BUYER to enter into this Agreement, the SELLER makes the following representations, warranties, and covenants.
E. SELLER understands that this transaction is contingent upon buyer being able to assign/sell for a profit to an end buyer.
F. SELLER hereby grants the Buyer and or assigns and their representatives all of the necessary rights to immediately list for sale, market, negotiate and enter into a contract to lease or sell immediately to a third party for a profit. All documentation in connection with the foregoing will be made available at the request of all Lenders, Sellers, and Buyers involved in the transaction.”
G. SELLER agrees contract is contingent upon suitable home inspection (BUYER’s choice.
See Exhibit A (Legal Description) attached
AS TO SELLER:
In witness whereof, we hereunto set our hand and seal, at _____________, in the County of ___________________, State of _______________, this _______ day of _____________, 20____.
_____________________________________ ___________________________________
Seller Seller
_____________________________________ ___________________________________
Witness #1 Witness #2 (Notary may be a witness)
State of __________________
County of ________________ ss:
Before me, a Notary Public in and for said County, personally appeared the above named _____________________________________________________ who acknowledged and declared that he did sign and seal the foregoing instrument and that the same is his free act and deed.
In testimony whereof, I have hereunto set my hand and official seal, at _________________, in the County of ___________________, State of ____________, this ______ day of _____________, 20___.
______________________________
Notary Public
AS TO BUYER:
In witness whereof, we hereunto set our hand and seal, at _____________, in the County of ___________________, State of _______________, this _______ day of _____________, 20____.
_____________________________________ ___________________________________
Buyer Buyer
_____________________________________ ___________________________________
Witness #1 Witness #2 (Notary may be a witness)
State of __________________
County of ________________ ss:
Before me, a Notary Public in and for said County, personally appeared the above named ____________________________________________________ who acknowledged and declared that he did sign and seal the foregoing instrument and that the same is his free act and deed.
In testimony whereof, I have hereunto set my hand and official seal, at _________________, in the County of ___________________, State of ____________, this ______ day of _____________, 20___.
______________________________
Notary Public
This instrument prepared by: Grantor
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Tee Scott,
Sistreat is right. You ran into someone who is not well informed.
(my own disclosure, I am COMPLETELY new at all of this with NO experience)
Have you ever been in a classroom setting where someone was teaching a difficult or even simple lesson? Yes, we all have been.
Well remember when the instructor was finished and asked does anyone have any questions? Or, does anyone NOT understand? What happened? MOST people did NOT ask a question or raise their hands. RIGHT?
Then you and the person next to you, while walking out of the class, looked at each other and said, "What did she mean by when she said this, or, I didn't get that?"
Well MOST people are embarrassed if they don't understand or get something so they act as if they do.
Well in the situations where we go to these people who are "specialists in their field" don't get or understand something THEY get embarrassed too! So their knee jerk reaction may very well be, "We don't do that here!" Or, "No! That is illegal."
While it may very well be the case SOMETIMES, it may just be they DON"T know how to do what you are asking them. Or, simply never been exposed to that TYPE of way in which you do something.
That is why I think these forums and discussions are invaluable! I'm sure you are well on your way since you last wrote about this but I just wanted to throw my two cents in. Good Luck and continued success.
DRP
Even if you haven't locked up the property, I have 3 cash buyers that tell me they wont go around me because they know I wont show them anymore deals. My end buyers are helping me because they want me to succeed to bring them more and more deals.
makes since.
Jason S.
San Diego, CA.
**All CASH House Buyer!**
Refer Us To Neighbors, Friends & Family, Earn $1,000
LIKE my FB page http://www.facebook.com/JandBHouseSolutions
Sissy,great post! "Still" I believe a contract is...A contract? I have more
important things going on in life, Than to remind somebody of there job
description, Honor my contract, Wanna BE...Title CO. I know what you might
be thinking!This randdee813 has really Lost it, Maybe i just know of a
condition called...The human condition. That means(The human condition)it
can never be right! My point is a contract is a contract,If you can not get
a And/Or assigns from a title co. Start with them and then SUE the bank!
Forgive my harsh...Wording!
Randy
true believer
Is it best to contact/make a friend with a title companies in the area you may be investing in or just find a couple that will work with you period. Or both?
The reason I ask is because what if I find a really good title company that will work with me BUT I have a closing(s) that may be a great distance away (50 miles) from where they are located from? Will they still show up to a closing that far away or would I need to find one in the area where the closing would be taking place? My common sense assumption is that it would be up to that particular title company. Is this correct??
To Sistreat, DRP....everyone..I love your posts, especially when you post the actual contracts used. It sets everything in plain view, and takes away a lot of the stress. Posting the Assignment contract you used is very helpful. I have my first property under contract in CT and I live in NJ. Trying to get my end buyers...I know...I did it in reverse, but the buyer actually came to me. Got to love that! I'm placing it on Craigslist. Any other ideals anyone? Looking to network live with anyone in NJ.
Keep the great information coming. This is the best site ever...with the best people ever...at all levels...learning, teaching, sharing....you can't ask for more. I can't wait to close my first deal and share the details!!!
Love it!
Geri/NJ