Assigments arn't so easy

I too am having the same problem but here in Michigan. Good Luck to you and do not give up.

no easy at all but i take it as my firt steps to be a millionear i trying to follow as instructed by deans team on the training see you on the top guys!!! keep up....

Its alot easier to do assignments when working directly with homeowners in distress. (No realtors needed) Spend some time studying that strategy. How to Locate the homeowners that have a real deal, and how you know it is one. Build up your buyers to assign to. Learn about the contracts needed. Find a title company or attorney that does assignments.

Michael Mangham
MD Home Acquisitions LLC

You need to use home owners directly. You lose too much margin trying to use a Realtor. As far as lease options are concerned, if the property has been on the market for 90 days, be caerful as you might find out they can't be leased quickly either. Use you common sense and consider your options before making a deal. Don't take the other guy's (seller/realtor/investor) opinion as the truth. It may be, but do some investigation.....especially in a city like Las Vegas where the numbers just don't seem to work.

The assignment works much easier with the FSBO properties.....I assigned a property this summer......we actually won the bid....when we signed papers....beside my name i put.....and/or assignee......assigned it the next day......I'm lucky to have an attorney that understands the assignments...I simply used Dean's form when I assigned it. Also, I would think, if the realtor you are working with is frowning on the assignment option, he's not the realtor for you......just my thought.......

I was following this thread agreeing that dealing with the seller direct would be highly preferable though I have yet to do my first assignment.

My question is how the attorney fits in? I can see where I want one before doing such a deal to review my contracts and such, but do I really need to consult one on each deal, assuming same state laws and etc.?

just check once per state, then you can move forward without checking each time. Get the answer from your attorney in writing so you can memorialize his opinion IF something goes wrong. Protect yourself.

Hi, I am just starting out and I need to know if doing assignments in Texas is legal. I keep getting different information and I'm really confused about it. The assignments is the only way I can go for now as I learn more. But am afraid to get caught up in some legal mess. If you're doing deals in TX, please let me know what I have to do to be ok with the laws.
Thanks

We are also starting with assignments but I have been looking at FSBOs as a market. You just need to find motivated sellers, which we haven't as of yet, but we are putting offers. If you throw enough rocks you're bound to break a couple of windows. Good luck and get away from the realtors with assignments. They will come in handy with other aspects and strategies but not this one.

Having trouble assigning REO properties

Can someone tell me how you assign a REO or bank owned property? Ive researched and read I could put a REO property under a LLC and just sell the LLC to my potential buyer? Is this a good way around using a assignment contract with a bank since generally banks don't like assignment contracts?

I would either buy it under an LLC and then add the end investor or do a double close using transactional funding... typically buying with an LLC is cheaper.

Been trying to do an assignment for about a year and I just locked up my first wholesale property 2 days ago. The hardest part of the equation is finding the deal. Thats why investor will pay a assignment fee for that deal. They know that its a headache to find a property they could buy at a wholesale price and fix then sell at a fair profit. That deal was bought to my attention from another wholesaler he had on contract since October and ask to much as a wholesale fee and could not get it assigned.I belive that he was marketing the property for to much. I get it under contract for 90K he agree sell it to me for 63,500 and he change his mind and went up to 100K and I had to negotiate to get it dwon to 90K. I told him that I will put it on contract, but it will only close if its a deal. Mean that there no guaranted it will close. I call up my buyer list and started marketing the property for 97K and I already am in a verbal agreement to buy the property I've to meet with the end buyer is attorney. Lets see what will happen. The end buyer plans on knocking the property dwon and building two 1 family on the lot.

I'm in New York City and I beliver that the Real Estate Market here is very intence. If I will of been in any other market I will of probly had a number of wholesale deals under my belt. Not many Real Estate Guru are from New York. They definitely ain't trying to hear about no 10 dollars earnest Money. Its a numbers game you just got to keep on striving to your number hit.

http://www.massactionrealty.com

I'm in a verbal agreement with a end buyer to sell the property at $97K.

Thanks plan~e and trustpoint as well. I also am starting to think that it may be more efficient, or at least easier and safer, to focus on bird-dogging rather than assigning. I have yet to do either and have been trying to find someone in my state doing assignments. So far no one has responded. May I ask where you are located, or have done deals?

I'm starting out by doing assignments too, and I'd have to agree: it's all a numbers game. You talk to enough people, 1/10 is bound to be motivated, and 1 of those 10 is bound to be a great deal. I used to be a door to door salesman, which is very different, but also the same in that aspect. You knock 1 neighborhood, 5-10 people are bound to answer, and 2 of those people are bound to want to buy. If you're good, 8 of them will want to buy.

This...

Also, if you have the right agent that understands what you're doing, then assignments arent too hard. Here's a quick overview, my GA agent is the best example since she's as motivated as I am to get some deals through no matter what. Keep in mind that even without an agent or broker, you're still going to have to REALLY search to find a property with good enough leverage to make this all happen.
Alright so, working with your agent, you'll get a Proof of funds letter to submit an offer on an REO that you RESEARCHED already and has been on the books longer then 90 days pushing 6 or 7 months perhaps. You notice it doesnt need much and the FMV (Fair Market Value) is around 95K and you get it locked up for around 65K leaving a difference of 30K for a new investor to work with.
Before I continue, its not worth your time to find a good deal only to have no buyers list built... you'll need that at this stage reguardless of how good the deal is...
Ok last step... you have the contract (with your added exit clause just in case.) Now you're meeting with your buyer and he's paying you a set fee to basically BACK OUT of your contract and you walk away with 2,3 or even 5+ grand and move onto your next deal.
Your "good" agent you find will understand what you're doing and have no problems with working with the new buyer.

Thanks for the input but I'm a bit confused. You said you would add your buyer to your LLC as an agent and back out of it. If the LLC is the buyer on contract then the LLC owns the property and if you don't sell that LLC to your buyer you are still 50% owner of it and therefor all assets of it as well. Meaning you still have 50% of any equity, liability, etc. on this and any other property owned by the LLC. When your buyer flips the property you are half seller of it as well and legally entitled to half of the profit. I'm not saying I would do anything like that or that you would just that I would not enter into that deal as your buyer. I would insist on buying your llc or just doing an assignment of contract. Are your buyers actually comfortable with you legally retaining half of the equity that they acquire and even build in the property through repairs and such?

Steve

thanks for the advice

What I meant was selling the LLC, sorry for the confusion.

Yeah it's a fairly common practice I guess to sign a purchase agreement with the LLC as the buyer then sell the llc to your buyer (as a way around non-assignment clauses, policies). I had not considered that the bank/seller will see this as the same as an assignment and pull the plug on the deal. That is even a technique taught in the success academy. I therefor assume it must work at least some of the time. I still think a buyer should be wary of entering into such a promise to sell the LLC afterwords. I suppose there is always a way to write that up so as to give the buyer assurance that they will get the property without having to share their equity with you.

Think I'll write to Tammy

Thanks Matt and plan~e
Steve

In Texas you have to use whats called First Right of Refusal instead of the Assignmetn. You will have the best luck doing this if you work with a Real Estate Attorney that will guide you through this process.