assigning a deal

Im new to this REAL Estate investing but ive been reading alot of these posts and i've grasped how a standard assignment works. What i need some clarification on is what the differences between an REO and a foreclosure? also what is a short sale? and in what situation is a short sale used?

What is an instant equity exchange?

Lastly, what is the 25:1 technique?

If anyone can help me it would be greatly appreciated.

A short sale means that the bank is accepting less than what they are due on the mortgage. For example: The bank is due $150,000 but after negotiations the bank accepts $110,000. That is $40,000 less than what they are due or in other words a short sale.

You would use a short sale when there is little to no equity in the property.

Instant equity exchange is a way Dean has created to do a transaction similar to assignments of contract with people that do not have cash like investor in assignments of contract.

The 25:1 technique was designed by Matt Larson, one of Deans Students. He makes 25 offers expecting to get one of the offers accepted.

My home state is Florida, so I contacted a local RE attorney who agreed to review the Investor Disclosure Notice and Seller's Acknowledgment, Investor Purchase Agreement, Property Disclosure Notices, and Discharge of Agreement to Purchase forms discussed in Chapter 8, Profit for RE Right Now. I wrote a 3-page memo explaining my fast cash approach for the next 6 months using contract assignments as a major vehicle. The RE attorney did not recommend using the Investor Disclosure form because this puts the investor too close to being an unlicensed real estate agent (too much gray zone for comfort). I am meeting the week of Oct 5th with the attorney to finalize the use of all forms that have been edited to meet FL real estate laws and ethical standards. I highly recommend all investors consult with a local attorney regarding state real estate laws and ethical practices regarding contract assignments and fee payments.

Also, I am meeting with another attorney who represents banks and other financial institutions with foreclosures to understand the process from the lenders perspective.

Joey.

I just got Dean's books about two weeks ago and want to do assignments. I live in Florida and was wondering if anyone else lives in Florida and has done assignments that could give me some pointers or tell me how you did your deal.

Thanks,
Eric

Very, Informative!!

Yasiah

"Faith Without Works Is DEAD!"

i beleive that they are referring to escrow just a short cut? katrinia

The biggest tip would be to create a focus for you.
I would suggest creating a goal - either Lumps sums of cash or monthly money.

Once you have decided what you want then decide what resources you have and are willing to use.

As you accomplish this you will know if you need to assign contracts or you can purchase and sell properties or even rent.

Once you have decided on the path I would suggest focusing on this. You will find by focusing that you will go faster and better.

thanks for the explantion on assigning a deal i read it and it shed some lite on it for me to use as well. i am still trying to connect with a real estate person to help me with some deals..

A consideration for you would be to create a list of buyers before you create or obtain a Realtor to work with.

Having a buyers list will offer a lot of mental strength when making an offer. When you look at a property will have the "Ok, Let’s make an offer because I have a buyer" attitude. This is a key building mental state for you.

The buyers will also direct you to certain properties, this way you are not spread everywhere with every property and doing this will help you be more productive.

There is a lot, lots of books and Dean's info about them.

Basically it goes:

1) you find a renter that would actually like to buy but can't yet
2) you make a deal that helps them to do that using two agreements
3) you set a date in the future for them to purchase
4) you set a price at which they will purchase,'til then, they rent
5) you set a rent price and possibly include rent incentives
6) you collect rent and sell as agreed at the purchase time.
7) OR for a fee, you assign all these rules and agreement to
another investor who would like to sit and wait and you move on.

Regards

I was wanting to know if I could work on an assignment in which the house is already listed on the market by a realtor? I was able to get the seller's information and would like to cut out the middle man (the realtor) and match the seller to a buyer that I already have waiting. Please let me know if this is possible or any other comments...

There is an old saying "What Goes around comes around" You should not try to cut out the Realtor, It will only come back to bite you in the end. Real Estate investing in any area is like a big circle. The Investors (buyers) know the wholesalers, the Realtors etc.... If they hear that you have in any way tried to cut someone out you will lose your credibility very quickly and you can also damage your reputation in the future should you want to make offers on listed properties. and in reality the property is broker protected if it is listed because the seller signed a contract with the agent. If you are going to do assignments you must keep a good reputation in your area. People need to know that they can trust you.

I suggest going through the Realtor on this. Just my opinion!