OfflineHas anyone tried assigning a contract on a regular person that is not an investor. I been thinking about using this strategy because you don't need a house with great equity. I been thinking about helping people get into a home, help them with the loan process also. I would show them homes through my Realtor and when they find one they like, I will put in under contract. Once under contract, I will sell them the contract or house to them. I would explain everything in the beginning to them so everything is transparent. I will tell them that I can make it easy for them to own a home and negotiate the price with the seller so I can make a small profit for my work.
I know this is tricky because most banks and types of loans like FHA's, will not finance a house that is not under the buyer's name. I can also try the Instant Equity Exchange or IEE method that Dean talks about. THat is where I back out of a contract through a several forms. The last method to this would be through a double closing . This requires a lower price with the seller because now there's 2 closings involved.
Anyone tried this or what is your take? Thanks!
MARTIN
FAILURE IS NOT AN OPTION!
I WILL NOT BE POOR ANYMORE!
We have quite a few investors that do assignments to friends and family member. They advertise themselves as let me do the negoitating for you. For alot of people these days, they want to take advantage of the market but don't have a clue as to the negotiating. They can give you their criteria, you find the property (they can drive by to see it),you would do the offer based on the calculation and you would make the offer. Once accepted, you would assign it to them.
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I put signs where I advertised a house fos sale at a cheap price that I put under contract. I was expecting to get a lot of investors but instead I got mostly all retail buyers. I spent hours with them and now realized most of this was a waste of time. Most of these are not even sure if they can get a loan and if they can is most likely an FHA , where they will not even look at an assignment of contract.
Even if they didn't go FHA, conventional lending takes weeks and most lenders will not deal with this type of transaction. IEE requires different paperwork and is almost impossible to do this with Realtor homes. The only chance for this method to work is with a FSBO and I haven't had much luck with these.
As of right now I am putting retail buyers to the side unless they have cash and wait for I to get more experience. I have been looking at too much and going back to the basics with K.I.S.S. Keep It Simple Stupid.
MARTIN
FAILURE IS NOT AN OPTION!
I WILL NOT BE POOR ANYMORE!