Posted by dewCO on January 11, 2001 at 20:14:12:
So who WILL be looking at the houses and the location and how will you know value?
Assigning contracts on junkers… - Posted by Charity
Posted by Charity on January 11, 2001 at 15:49:09:
If I begin concentrating on getting some wholesale deals throughout the US, I need to know how to go about assigning the contracts to other investors and handy man types. Can someone explain what to put in the contract (these would NOT be listed properties). I would use LeGrand’s contract, but do I need to put some assignment clause in there? How does the process work - Say I find a deal and put it under contract (and use a weasel clause like the inspection or partners approval). What are the next steps? I locate an investor and assign the contract? How do you do that (paperwork involved, etc.)? Do they give me a check and I just assign it and they go to closing?
Many of these deals will be from out of state and I will never see the house. What challenges should I be aware of in that regard?
Any info greatly appreciated!
Charity
Re: Assigning contracts on junkers… - Posted by Jim IL
Posted by Jim IL on January 11, 2001 at 21:32:40:
Charity,
I personally would not try to do wholesale flips from out of state.
It would be too hard to know the market in so many places, and to properly evaluate the homes.
Unless you have a partner in each place that knows the market.
Why not just do a few near where you live?
I’m sure there are good homes out there and plenty of buyers.
As far as assigning a contract, I have been told that each state is different when it comes to the law on this.
In my state, any contract is assignable UNLESS the contract states otherwise.
So there is no need to have an “And/or assigns”, or an assignment clause in any agreement.
I do however place an assignment clause in mine, which states that I am released from liability if the agreement is assigned.
I also go one further and have the seller sign a release seperate from the agreement, when I assign.
Just in case the person I assign to does not perform.
You should be safe using a contract in just about any state that at least has a clause stating the agreement is assignable, and says, “And/or assigns” after your name.
And when you do assign, just have the buyer (the one you are assigning to) sign an assignment of agreement form, which you can get online many places, and pay you cash when they sign or close the deal.
However you work out payment is between you and the buyer.
HTH,
Jim IL