OfflineNow that I have been assigning contracts I have learned a ton from the entire process. I see a lot of people on this site that want to assign contracts but are struggling getting through that first one. By the way once you get through the first one it gets really easy after that. Here is a list of the ways to assign contracts with the least amount of resistance. Just follow these steps and victory is yours-it is not hard to do and don't let anyone else tell you it is.
1.) Find your buyers first. The buyers that will pay cash should be at the top of your list. The reason is that some banks will not let their clients close on a contracts that is not written in their name.
2.) Lock up deals that are For Sale By Owner, or if the house is listed with an agent then make sure the house isn't bank owned. I'm not saying bank owned properties can't be assigned I am just saying that it is much easier to assign deals that aren't. All you do is sign your name and after your name you write "and/or assigns". The place you write this is on the line that says "Buyer" at the top of the page (which is right above the legal description of the property). You only have to write and/or assigns in this spot and not anywhere else.
3.) Make sure to get a real estate attorney in your area that is familar with assignments of contracts involved with the closing. This is a must. A title company does not have "legal counsel" to be able to handle an assignment. An attorney does. Once you lock up a deal with and/or assigns and you have a buyer in place call your attorney and give him a copy of the contract and the phone number of the buyer. He will do the rest of the work for you. He will call you if he needs more info. DO NOT USE A TITLE COMPANY TO HANDLE AN ASSIGNMENT OF CONTRACT. A title companies job is to make sure a clean title is delivered-they are not in the business to give "legal counsel". That is why some title companies will tell you it is illegal to do assignments because it is illegal for them to change contracts because they are not lawyers. I hope I am making this clear. At the point when the attorney starts getting the assignment put together, your new buyer will send a check to the attorney. You can do one of two things-have the check made out to the attorney and then the attorney will in turn write you a check (the best way) or the buyer can just make the check out to you or your corp and the attorney can hold the check until closing. Note: some title companies will do assignment of contracts, but they are few and far between. It is only a matter of time before they won't handle them any longer. I have met several people that used to be able to do assignemnts and then one day their title company told them they weren't aloud to do them anymore. When I explained to them why-they looked at me with a new sense of hope. Now after learning what I have taught them they are back to the races.
4.) Make sure you help your new buyer run through his due dilligence checklist. The buyer needs to have the property inspected, get insurance ready, etc.
I hope all of you realize this is LEADING EDGE information. This isn't stuff I have read somewhere or stuff that someone else is using. This is information that I have learned as I have been doing assignments. You will not find this info anywhere else. As I have discovered several of these "mistakes" that some of the biggest guru's in the country were making when teaching assignments of contracts I realized why so many people have failed when trying to complete one. Please use it and go make money. I want you to make money, Dean wants you to go make money, America wants you to go make money. Go out there and accomplish your goals and dreams. Get it done!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Thanks CBR, I am just starting to look at assignments. As a Realtor, I know that many have been done in my area. I have heard nightmare stories about the complications involved in assignments, some times involving lawsuits or mediation (this is probably why so many Realtors avoid them). I want to be sure that when I do this, I understand fully what I am doing. I will contact a RE Lawyer, and use him to oversee the transaction.
Thanks again for sharing your knowlege with us.
Al
"NOW GO FIND A DEAL"
Thank you SO much for all the tips! I'm sure all of us that have been frustrated with trying assignments will also find "new hope" in starting again, using what you've just taught. I know I am looking forward to it!
I'll report back to you within 2 weeks, I promise, with an assignment on it's way! I am challenging myself!
God bless, and thanks again for unselfishly sharing the secrets that I'm sure you've spent much time, effort, and money learning.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
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"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
How hard is it to lock up bank owned properties to re-assign? Also with escape clauses?
2.) Lock up deals that are For Sale By Owner, or if the house is listed with an agent then make sure the house isn't bank owned. I'm not saying bank owned properties can't be assigned I am just saying that it is much easier to assign deals that aren't.
I KNOW how frustrating the REOs can be (unless it's a straight sale w/ cash). Now I understand WHY and will focus my attention elsewhere for assignments. (thanks again, CBR)
Good luck.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
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"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
So if you're going to assign a bank owned property, you shouldn't sign it with "and or assigns"? The banks more than likely will reject the offer?
I would think with so many others doing this they would be happy to get it off their books no matter WHO is buying it (or HOW)! If they do reject it then what can you do to get it under contract? Put in a new offer & sign your own name(with plenty of excape clauses)!?
If I sound confused, I am.
Dawn
Dawn, if you don't put "and/or assigns" in with your name as the buyer, you will be the only one on the contract, thus not able to assign the contract. Yes, you can put multiple contingencies in place for your exit strategy but if you go through with the deal without assigning it, you will have to close on it yourself and then resell it to another buyer.
Nick Walters
Walters Property Investment Group, LLC
Give these methods a shot and you will see how quickly the assignments will start to work.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
For sharing what you've learned through trial and error with us. We all appreciate you taking the time to do that, especially knowing how busy you are.
Psalms 118:23 "This is the LORD's doing; it is marvellous in our eyes."
1) Does it matter what state you are writing a contract in if the "assing" comment works or not? In CA, we use title companies. In KY, where I currently live, we use lawyers for title search and recordings.
2) I use to hear that using "et al" was better than "assign". Any thoughts on that?
Thanks Mike
Well, "et al" does mean "and others" in latin, but I have never heard of this language being used in a purchase and sale contract. I don't know what others have to say on this subject, but I would be safe and use "and/or assigns" in your contracts so you can assign these contracts to other investors/buyers as your primary exit strategy.
Good luck and Happy Thanksgiving.
Nick
Nick Walters
Walters Property Investment Group, LLC
Never heard of that one there, michael. However, i would just get in the habit of writing your name followed with AND/OR ASSIGNS, MOST states(if NOT ALL) recognize this as "ASSIGNABLE" or 3rd Party. You could also just read the contract and see if the language states that the contract is ASSIGNABLE(i know mine are), SULLY
YOUR HERO, SULLY
What are some good escape clauses to use to make sure that if you can't find a buyer that you don't get stuck with the property???
You'll have to start sometime, might as well be NOW!!!
Has anyone used double closings? With double closings you don't need "and or assigns" in your contract. Also you won't need to explain to realtors what and or assign is. The nice thing about a double closing is that you can do foreclosures and HUD deals, because typically banks will not allow you to use the and or assigns on hud and foreclosure properties. The main thing you will need for your double closing is proof of funds a BUYER..
Jason
That is some great info... And I am going to start trying to do an assignment. I was wondering about the escape clauses as well. Where should I put those and what should it say?
Unfortunitley I have posted this Information Numerious times(Escape Clauses, along with other's on this site), just look it up in the Archives......As for where to put the Clauses, they'll need to go on a Seperate Addendum that gets added to the contract, I will tell you the (4) that i always include in each deal:
1) "ABILITY TO AQUIRE FINANCING SUITABLE TO THE BUYER"
2) "ABILITY TO ASSIGN"
3) "OFFER IS CONTINGENT UPON SUITABLE HOME INSPECTION"
4) "ENTRY RIGHT"
YOUR HERO, SULLY
i was wondering about the escape clauses as well sully thanks for that help your a big help its hard to navigate the site but when you find what you need its gold
cbr can i ask a question about the round about how much you made with assignments
I am sorry if I am asking questions that have already been answered, it is just alot of info and I am ready to get started. I am trying to read every piece of info on this site but I have to agree with mattjay... it is a bit hard to navigate the site, but thanks for taking the time to respond!
Thanks for the information on assignment. I just submitted my first offer to a bank for a short sale. I am a recovering day trader who made history by loosing 64K in one week (margin calls). This is a different game and I hope to be active here as we all head towards the dream land
As always - your wisdom is priceless! I have printed out your post and taped it to my computer, mirror, refrig, and threw a copy in my car too! I have been totally geared towards buying to flip or rent - but you have once again inspired me to think new and different! Thanks!
I encourage you to visit the thread concerning frequently asked questions. This will be a great start for you. You will obtain answers to most of your questions. You will also have to visit the site frequently to keep up with the additional information. Do not get overwhelmed. You just have to play catch-up. You can do it. Stay focused and God Bless.
Sandra
So you lost 64K, and others lose that and more through foreclosures. All is not lost, you have life and where there is life there is hope. This is the time when you could make it back. Think carefully, you may only need two deals depending on where you are located. Remember, we all learn from our mistakes and those of others. Use this as a learning experience. Invest, and store away, that's how it goes. Good Luck and God Bless.
Sandra
Hi,when it comes to contracts,do I bring them to the table or does the seller?Someone said I can print them from here.Is this true?
Thanks
Adelaida
I know this may sound really stupid but,Do I bring the contract to the seller frist and then to the buyer?How does that work?Im understanding everything else,its just the little details that no one is sharing.Im stuck on stupid right now,and I need just alittle help from you guys,if thats ok.I have my buyers list,There are alot of investments that are in my town ready to get going.I found all that the buyers need.I'm just having alittle trouble with this little issue.PLEASE SOMEONE HELP ME!!!!!