Assigning contracts - Posted by Lorna...FT. Worth, TX

Real Estate Investing
1

Posted by Lorna…FT. Worth, TX on December 29, 1999 at 18:46:07:

Thanks Jim. BTW did you receive my e-mail?

Is that on a assignment or on a flip? So far none of my sellers have asked for earnest money so when I assign my contracts I don’t ask for any earnest money. I did ask this investor if he would pay the assignment fee prior to close, however, he was concerned that he would loose his money if the property didn’t close.

Lorna/

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Assigning contracts - Posted by Lorna…FT. Worth, TX

Posted by Lorna…FT. Worth, TX on December 29, 1999 at 14:00:52:

Hello all,

Before I began reading this board I thought that when you assigned a contract you didn’t get paid until the property actually closed. Are there any investors out there who actually pay on contract?

The reason I’m asking is that I’ve got two deals that I’ve assigned this month that will close, however, they may take some time. I would sure like to have the funds…like NOW. Any ideas anyone?

Lorna/

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Re: Assigning contracts - Posted by jabsr

Posted by jabsr on December 29, 1999 at 19:46:09:

Our firm pays a small % upon assigment and balance upon close of escrow:
We are always looking for deals and pay finders fees

Delta Partners Properties Inc
P.O. Box 153 ~ 2406 State Highway Rt. 80 ~ Vanhornesville, New York 13475 ~ USA
Phone 315-858-0893 ~ Fax 315-858-0894 ~ Home Phone 315-858-1463 ~ Email jabsr@telenet.net
Nationwide Buyers of medium and large foreclose ~ properties for over 20 years

December 29, 1999

Dear Seller of Foreclose Properties (REO’s) ,

We are a Private Real Estate Investment Firm, looking to buy immediately medium and large properties
nationwide that is in either pre-foreclosure, foreclosure and post-foreclosure stages. Our buying criteria
is as follows:

  1. Must have a cash flow
  2. Must be available for immediate possessing
  3. Must have a complete set of books, records, rent roll certificates etc.
  4. WE must be able to acquire the properties with little or no money down

If you have any properties meeting our buying guidelines email the specific information to us and we will
get back to you within 24 hours.

Sincerely,

DPPI

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Re: Assigning contracts - Posted by Jim IL

Posted by Jim IL on December 29, 1999 at 15:47:48:

Lorna,
That really depends on the relationship you have with your buyer.
I have done both.
Usually in the first deal or so, the assignment fee is paid at close, since the investor does not really know me.
After we do a deal or two, there is a relationship developed, and then we ask for the assignment fee upfront.
Either way, the earnest money we put up is countered with earnest money received from our buyer, so we do get funds upfront regardless.
Example:
I tie a home up with $500 earnest money, then I take $1000 from my buyer.
I am now ahead $500, and can wait for the remaining amount at close.
Thats how I do it most times.

If you want your money NOW, ask the investor, and see what they will do. You never know until you ask.

Good luck to you,
Jim IL