Posted by MM on May 07, 2006 at 02:48:46:
Pat,
I forgot to mention that seller financed flips arn’t always assignable by default. Unless you include and/or assigns it may not be assignable. Texas for example is this way. They may even have additional requirments. I’m not sure of that though.
Just found out about this kind of flipping… - Posted by pat
Posted by pat on May 06, 2006 at 08:24:47:
Hey everyone… i know it sounds dumb, but i for the past few months reading
about wholesaling i always thought the seller was getting completly cashed out.
apparently, i can flip terms deals too. (sub2,lease option)
my question is how do i flip these deals… besides my local rei group. do i put
an ad in the paper that says sub2 deal! or… im not sure. any
suggestions?
Re: Just found out about this kind of flipping… - Posted by Pat
Posted by Pat on May 07, 2006 at 19:11:10:
As regards assignment liability, check with your state’s RE statutes. In my state, if the assignee does not come through and complete the deal, the assignor is held liable to perform. This is state law and therefore the owners absolving you of responsibility means nothing. You’re dealing with the RE commission! And of course, if that happens the owner will jumop on the bandwagon as well to get his pound of flesh. So check it out.
Assigning Sub2 contracts - Posted by george
Posted by george on May 06, 2006 at 13:20:16:
I see a real danger in so many houses taken Subject 2 being assigned to newbies desperate to find a deal.
When the assignee runs into trouble, doesn’t have the reserves, can’t make the payment, allows the property to go into foreclosure, guess who winds up in court? The person who made the original contract taking the property Subject 2.
The original owner thought he was going to be spared a foreclosure on his records, so now he runs to an attorney claiming his credit is ruined. (never mind he may have been foreclosed anyway.) And guess who the judge sides with? The hard-working homeowner pursuing the American dream, or the lecherous, real estate investing vulture?
These lawsuits are happening, folks. There are too many things that can go wrong with Sub 2 assignments once you give away control.
Danger, Will Robinson.
george
Re: Just found out about this kind of flipping… - Posted by Joe Kaiser
Posted by Joe Kaiser on May 09, 2006 at 01:13:08:
Please point me to it (state law) . . . thanks!
Joe
Re: Assigning Sub2 contracts - Posted by MM
Posted by MM on May 06, 2006 at 18:58:23:
Pat,
Besides investors at your club? How about retail buyers who don’t have the credit , but do have the income? As the other poster mentioned, you can still be on the hook, if something goes wrong ( if you didn’t get the original seller to release your liability) A release of liability agreement between you and the seller is a must even in a “conventional” assignment. When you are released, they have no claim against you period.
Oh and here’s another one for your repitua; you can also flip seller financed transactions, as a double close, or assignment.