Flipping,assigning contracts,etc. - Posted by Barbara Beaumont

Posted by Adrienne on March 25, 1999 at 08:29:21:

question
once you assign your rights in the contract are you still responsible for
the settlement? If the buyer does not go through with the purchase would
I be liable?

Flipping,assigning contracts,etc. - Posted by Barbara Beaumont

Posted by Barbara Beaumont on March 24, 1999 at 20:05:28:

I’m new to all this, which won’t be a surprise
after I open my mouth!! I haven’t gotten any
of the materials on the site yet so I’m really
not prepared but I have a question: Can I
make an offer on a property (seller paying
closing costs), have my agent check the little
"right to assign" box, put it under contract
to a buyer (who’s already approved for a
mortgage), close the deals at the same closing
for the original sellers paying the closing
costs and receive my profits? In my mind, it
seems it should work as I would actually be
receiving funds for the right to the contract
rather than actually purchasing the property
which would probably then require another
title search, all their little closing costs
etc.

If anyone can make any sense out of what I’m
trying to say–I would appreciate any feedback
you can give me. My RE agent is getting many
different answers to this question. but they
all sound like the word NO. I would like to be
able to do this but I don’t have a clue if
it’s possible. Any recommmendations on the
best materials sending me in this general
direction? Is this similar to what is called
flipping? (Is less said better?)

Thanks
Barbara

P.S. I’m in Florida if it matters

My $.02…(long) - Posted by Jim IL

Posted by Jim IL on March 25, 1999 at 24:57:35:

If I read your post correctly, you are asking “IF” you can do a simultaneous close?
The answer is “yes” absolutely, you can, it is legal and done all the time all around the country.
If you find a title company or agent that says it cannot be done, they simply have not done one “yet” and you need to find another company or agent.
You can also “assign” your contract to another buyer. This is cheaper, because it saves you double closing costs. The Title stuff can only be done once in either scenario. The title simply passes thru you to your buyer, because you actually only “own” the property for a few minutes.
There are advantages to both…the “assigning” advantage is that you don’t pay ANY closing costs, and really don’t even need to attned the close if your buyer pays the assignment fee ahead of time. Although, starting out, this is less likely, because your buyer will not know you and may insist on paying you at the close. You of course will get a deposit from your buyer, either equal too or greater than your earnest deposit. The disadvantage is that your buyer will know “how much” you paid for the property.
You may hear, "why should I pay $xx,xxx.xx for the home when you paid

Re: Flipping,assigning contracts,etc. - Posted by Rob FL

Posted by Rob FL on March 24, 1999 at 22:08:01:

You just need to create a simple assignment of contract form. The new buyer purchases according to the original contract and you take an assignment fee. No double closing or double closing costs. I have done it before. Contact a title company or an RE attorney? If you want email me, I work for a title co. in FL.