Get the deal under contract from the seller, make sure you have all your weasel clauses in place if you don’t want to end up owning the house. Of course, the contract is assignable.
Your options are-- sell the assignment for the amount you want–or-- write a contract on top of it, again making sure you have all your disclosures, i.e., you don’t actually own the house, you may or may not get title to the houe, you are a professional RE investor, etc. Set the latter up in a dual closing. Find a title company that will work with you. Make sure you disclose everything and you should be OK. But, you may want to flip an atty a few bucks if you’re not sure.
I had a lady call me on a house that I had for sale today, this house was a rehab that I have already purchased and rehabbed, any way it was a two bedroom house and she was looking for a 3 or 4 bedroom house and so I let her go. Well I found a 4 bedroom house today that I can pick up for about 33,000 and sell to her for 45,000 easy, this lady has already been approved by the Indian nation for a house, so I called her back to tell here that I might have one that would fit her needs. Now I have never done a assignment before and have a couple of questions:
How do you keep the lady that I am assigning the house to or the person I tied it up from knowing what the terms are with the other party. It would seem to me that this information should be kept from the two parties.
If I assign the contract what do I have to do at closing accept show up to pick up the check??
Do I ever actually take possesion of the house in my name.
What kind of form do i use to assign the contract to the new party??
I’m in the same situation and have the same questions. Have you been able to get any further information as far as you actually getting posession of the property and the type of form that you use?
Re: Quick flip and assignment questions - Posted by Ray S(FL)
Posted by Ray S(FL) on January 22, 2000 at 18:45:13:
Ted,
When assigning a contract to a retail buyer there are definitely a few more things to consider than if it were another investor. First of all I don’t see you “assigning” a contract to anyone for $12,000.00. Maybe if it were a $250K property or higher but, you are talking about 25% of the sales price. There are going to be some upset individuals if they find out that you are making $12k for doing…nothing. I would definitely set this up as a simultaneous closing.
Usually an asignment is when you don’t care if they know what you make because it aint a whole lot.
Your second problem will be chain of title. (seasoning on the title) If your buyers lender will not fund the purchase unless you are on the title for a reasonable amount of time then this will be a problem. On the other hand if they do not care who is on the title then this could be a beautiful thing.
You definitely want to use an attorney or title co. who is very familiar with simultaneous closings.