Getting an assignment "under contract"?? - Posted by Mario Lopez

Posted by Brenda Whittaker on September 24, 2003 at 02:50:23:

Nice sermon. I really like #5.

Getting an assignment “under contract”?? - Posted by Mario Lopez

Posted by Mario Lopez on September 20, 2003 at 10:53:31:

Ok I’m new to this and have a quick (maybe dumb?) question. I have a wholesaler who is going to start sending me deals, and he just called me this morning with a GREAT one. Of course, he is also offering the same deal to other investors in my area as well. We talked and once he knows I’m serious and can close, etc. he said he will send them only to me first and give me 24 hours etc to act on it. But for now he is also offering them to other people too. So I want to act on this one, and we are meeting at the property tomorrow morning. But my question is, is there any way that I can get his assignment to me “under contract”? For example can something simple be written up, I give him a few bucks as option money or something, and then he won’t sell it out from under me? Or is that pointless since if we were meeting to do all that we would just meet at the property anyway? Oh and the final question since I’ve never done this before. When someone is going to assign the contract to me, what exactly is the procedure to get this done? Is there some agreement that I need for us to both sign? How and when does he actually assign it to me? etc. I couldn’t find any info on this in the archives. This could be a great one, and I hope to post my first “success story” soon. =)


Posted by Randy on September 20, 2003 at 11:03:03:


THIS ASSIGNMENT is made this by (hereinafter referred to as “Assignor”) to (hereinafter referred to as “Assignee”).

W I T N E S S E T H:
WHEREAS, Assignor has entered into a certain Real Estate Purchase and Sale Agreement with as “Seller” and Assignor as “Buyer” which Agreement was executed on , by said Assignor and on , by said Seller for the purchase and sale of certain real property being, lying and situate in County, , and more particularly described…

I can email one to you if you wish…

What’s the difference between… - Posted by Mario Lopez

Posted by Mario Lopez on September 20, 2003 at 12:46:33:

Can anyone tell me the difference between an “Assignment of Contract for Purchase of Real Estate” and the “Assignment of Real Estate Purchase and Sale Agreement” you mention? Thanks!

Re: What’s the difference between… - Posted by Randy

Posted by Randy on September 20, 2003 at 13:09:17:

No difference, the buyer agrees to purchase and the seller agrees to sell.

And what about the original question… - Posted by Mario Lopez

Posted by Mario Lopez on September 20, 2003 at 14:12:22:

Is there a way to “tie up” the assignment/contract while I do my DD on the property, so the wholesaler doesn’t go and assign it to someone else while I’m evaluating the deal? Or until the actual Assignment of Purchase and Sale Agreement to me is signed by both parties, and I pay him the fee, there is nothing I can do to prevent him from changing his mind and assigning it to someone else?

Re: And what about the original question… - Posted by Brent_IL

Posted by Brent_IL on September 21, 2003 at 13:49:30:

I couldn?t agree with more with Randy. Like him, I?m not posting this to scare you off, but subtlety seems to be working less and less when conveying the basic concept. I can tell you with almost 100% certainty that this will not be appearing in the ?Success Stories.? ?Breaking-Even Stories,? perhaps. Almost 100% because there is always a slight chance of things working out. Here?s what you need to know.

1 ? Good deals are available every single day. Sometimes they are more obvious than at other times, but they are there to be found. Never worry about any one property.

2 - You are a self-confessed newbie. How will you recognize a good deal? The answer is that you wouldn?t. If you had studied enough to know, you would not be new to all of this. In my mind, you are too anxious. You are taking the word of one who has a vested interest in selling you this particular piece of property. That is a very old recipe for getting stuck with an overpriced property. Recall all of the posts that you?ve read on from folks who say, ?I got a call from a motivated seller and signed a contract. Now what do I do?? They, too, are looking to assign a deal to one with the same motivation as you.

3 ? If you are ?serious and can close,? can you think of a reason why the wholesaler wouldn?t come to you. All salesmen can create a sense of urgency where none exists. It is one more closing technique.

4 ? You can offer to option the contract assignment for a short time for no more than a week. If it is a great deal, the wholesaler will not want to take it off the market and won?t accept. If he thinks that you might become a regular, he may give you a chance. What I?m wondering is what you will learn in a week to assist you with your due diligence efforts.

5 ? I got into the habit of using Jimmy Napier?s terminology and referring to my mistakes in real estate as ?seminars,? e.g., ?That was a $15,000 seminar.? Somehow the cost of these seminars is always higher than the cost of a course or a lawyer. I?ve learned to take the lower priced option.

When I used to sell investments that required a monthly investment, I would tell people in their twenties. ?In America, unless you a born wealthy, a period of financial sacrifice is mandatory at some point in our lives. You can make that financial sacrifice now when you are young, making money, and can exert control over your expenses, or, through inaction, you can defer that time until you are old and eating dog food until the next Social Security check arrives. The choice is yours.?

There is a parallel in creative real estate investing. If you were not born with innate real estate knowledge, a period of learning is required. You can do this before you make any investments at minimal cost by study, preliminary research in your local market, and learning on-line from the experience of others, or you can defer the learning time until after you have jumped into a deal when the financial and personal costs are much higher. The choice is yours.

End of sermon.

Re: And what about the original question… - Posted by Randy

Posted by Randy on September 21, 2003 at 12:00:28:

Your contract? When you enter into a contract with your wholesaler ?Your name and/or assigns? agrees to purchase ?X Property? with what ever conditions to close on or before X date?.. He can not assign/sell/convert X Property until your contract expires or you fail to perform.

I don?t know you or your skill or knowledge level, but based on your questions and responses I suggest you do allot more studying before you make any offers. This is basic contract law, that is why you have a ?Contract To Purchase?. I don?t mean to offend any one so if this is not appropriate I apologize, it sounds to me like you don?t understand what a contract to purchase real estate is.