Re: New question for Jackie in Dallas - Posted by Jackie in Dallas
Posted by Jackie in Dallas on January 05, 1999 at 19:42:48:
There are several ways you can go when flipping.
If you have worked with an investor before and know they are going to come to closing with the cash - then you can just fill out the assignment form for the amount agreed to - then give the assignment form to the title company. In this case you would get all your assignment fee at closing.
I’d ONLY advise doing this if closing is just a few days away and you have worked with the investor before. Too many things can go wrong.
Since you are just starting out and don’t know the investors I would definitely advise getting an earnest money deposit (if not the whole assignment fee) for the assignment and have it held in escrow by the title company. It’s treated just like the earnest money (if any) that you put up when you signed the contract with the owner of the property.
The earnest money is applied towards the assignment fee - not added to it.
In this case you would need to modify the assignment form to allow for the amount of earnest money and the additional amount due at closing.
The investor would make the check out to the title company (not you) and you would turn it in, along with the assignment form, to the title company.
I’m so glad that the information I’ve shared about flipping is helping get so many people started in investing.
Success doesn’t happen by chance - it’s something we all have to work at. It sounds like you are doing the necessary steps to make success happen - keep up the good work and hopefully you can get in a flip or two before the convention. Hope to see you there!