First Flip Details, Sorry It's LONG - Posted by Kristine-CA

Posted by Kristine-CA on March 09, 2002 at 12:22:43:

Diana: My contract, which was a standard CA Realtors Association purchase contract did not state anything about the contract NOT being assignable, at least as far as I could tell. I signed the contract with my name and “assigns” after it. I also put in the contract that I would need access to show the property to contractors, possible tenants and/or assigns. So the seller could see that.

I did not ask the seller’s permission but have told her so that she knows that a different buyer is closing. The title company doesn’t care who closes. However, because of the relationship I developed with the seller, it was important to me to find someone who would close exactly as in the contract. Otherwise I would have felt compelled to close myself. I am thinking for the future that I would like to build the wording about assignments into the contract so that it is very clear.

Hope this helps. Sincerely, Kristine

First Flip Details, Sorry It’s LONG - Posted by Kristine-CA

Posted by Kristine-CA on March 09, 2002 at 01:45:56:

Thanks everyone for your encouraging words about my first flip. For those of you who asked for details:

I found the property in probate by accident. The deceased’s last name was the same as that of an owner of an abandoned property. When I checked the death certificate, the deceased had lived at a property that was in a neighborhood in which I was interested. I left a phone message with the attorney listed. She never called me but the exector-to-be, the daughter, emailed me right away. We made a deal within a couple of days via email. We have never spoken. I got a signed purchase contract for $13.5K and thought I could sell it for between $16 and 20K. It was liveable but needed re-wiring. Long story. It was totally dirty and full of the deceased’s possessions. I did nothing to that house. Put it into escrow for $100.

I advertised in the local paper and in a nearby large city paper. Got lots and lots of calls because, hey, how many houses in CA are advertised for 20K. Told people to drive by, check it out and call me back. Showed it two mornings for about an hour each to about 4-5 people. Got low-ball offers. Also got an inkling that the money was to be made flipping it to an owner/occupant, not an investor.

Went back to the seller and told her I wanted to change the contract to 11.5K because of the wiring work needed. She said ok via email in about five minutes. You gotta love a business that let’s you make another 2K for the asking. I decide that the first person who offers me enough to clear 5K gets the house. This has been my job for the last two months and it’s time for some cash. And it’s 150 miles from home. Next person to see house happily agrees to 16.5K. I was planning to close on it myself but both the buyer and I agreed that they would benefit from title insurance and I agreed to take a discount if they would buy my contract. And we couldn’t get escrow company (was seller’s choice) to agree to a double close. They actually had a policy against it. So, if buyers would pay all the costs I agreed to in the purchase contract and would close with my seller, I would take $4700.00. Signed the assignment today and got paid.

Actual hours? Good question, JohnBoy. About 15 hours for the emails with seller, placing ads, answering phone calls and creating documents, showing house and posting on CREonline. About 10 hours for travel to the property 3 times, but that’s where I drive around and look at abandoned properties and visit with the Realtor who never brings me any deals, and I usually am there every weekend anyway. Worry hours far outweighed the work. I put the property under contract the last week in January and got paid today. Probably obsessed about it about 150 hours. But since I have lots of other leads for sellers, and lots of interested buyers (with cash) leads, hours spent so far have been very worthwhile.

It’s SO MUCH FUN TO BUY AND SELL! Loved working with the seller and she loved working with me. Loved working with the buyers and they love their house and loved working me me. I know they can’t all be like that, but what a great way to finally, finally find something that I can do and be totally me.

My own opinion about the deal: I had a motivated seller and I did everything I could to make this process what she needed it to be. She wanted it to be done yesterday. And she didn’t want to deal with the house in anyway. I now understand the true value of a motivated seller. I bought it right. And I undersold it. Oh well, live and learn.

Tomorrow’s Saturday and I have to find a new deal or I won’t have anything to worry about. Thanks again everyone. Sincerely, Kristine

so was your contract assignable? - Posted by diana

Posted by diana on March 09, 2002 at 09:55:28:

Did you have an and/or assigns clause? Don’t you have to have the sellers permission to let someone else buy your contract. This part always confuses me.


Re: First Flip Details, Sorry It’s LONG - Posted by WaynePa

Posted by WaynePa on March 09, 2002 at 09:13:59:

Congrats Kristine!,
I love the fact that you are doing something. There are tons of us newbies out there doing nothing, but we have a lot of good theories. lol Well any way I am leaving that group of wandering generalities and I am gonna keep shooting, I’m bound to hit something. You inspire me and I’m sure a host of others. I am gonna follow your footsteps and push forward. Thank you for the slap on the tail! Lotta love and good wishes to ya. Oh by the way what part of Cali. do you reside? I am moving to that side of the country next year.

To your success,
Wayne Inniss