I wanted to share Bailey Meadows Journal with all of you and I cant seem to get an answer from this strategy.(HER STRATEGY IN HER JOURNAL IS DOWN BELOW)
How does this process work?
I dont understand, I know you get your fee up front. Question:
Are you going through escrow with your endbuyer and then quit claim the deed and get your name off.
If so, I was told from a Title Officer that putting in offers with the endbuyer on the addendum as a second buyer without his signature would raise red flags to get my offer accepted.
I also dont see one of my endbuyers signing there name on every offer I'm putting out there.
Can someone help with this.
As far as investments, I am still active. I did experience quite a challenge now that REO & Short Sale Lenders demand and disclose the "no assignment" disclosure. In such case, I did find that asking for upfront fee from the assignee has been successful. Given that REO/Short Sale lenders will call the contract void if they find assignments involve, I found that by creating an addendum to add a "second buyer" is a loop hole. This way, the seller (which in this market is usually the REO/short sale lender) will generate a revised approval and/or contract approving the secondary buyer to the contract. Since the new buyers' name is on the contract, he/she can have his/her loan documents (if financing) finance the purchase without having to do a double closing.
You are on point! In this case, I tell the end buyer that I collect my assignment fee upfront. As soon as I am paid, I create an addendum to delete my name out of the contract which leaves the end buyers' name behind. Creating this addendum secures the end buyer -- the short sale lender/seller can care less about this; all they care about is one of the buyers funding the purchase. So this addendum deleting your name off, is not required by the seller/lender to be submitted to them. This could be a private contract between you and the end buyer, with you reliquishing your rights to the transaction for a nominal fee
Addendum to add secondary buyer...
It is so awesome to see someone out there just "doing it"! Thanks so much for the great advice on the addendum. I hope to use it. I was wondering how I was going to be able to get around the whole REO thing and the "no assignment/no double closing" hassle. I think you have just given me a way out!
How do you set up the "secondary buyer" addendum? Is there some sort of special wording needed? Thanks again!
Verbage that I use for short sale lender to add your second/end buyer into the contract:
"1) Add second buyer: John Smith
2) All other terms and conditions to remain the same "
If for any reason, John Smith ends up backing out or not working out at all, you can then create another addendum to your first addendum to add a different buyer's name:
" 1) Delete John Smith as second buyer
2) Add second buyer: John Doe
3) Close of Escrow: 4/15/09
4) All other terms and conditions to remain the same"
Another Tip for expidited approval: Make sure all parties mentioned in each addendums, along with sellers sign off -- short sale lenders are only following contracts.
So in your first addendum to add second buyer John Smith, make sure that you sign, John Smith signs and sellers sign.
If you require a second addendum to replace John Smith with John Doe, make sure you sign, John Smith signs, John Doe signs, and of course the sellers signs on this addendum.
DISCLOSE, DISCLOSE, DISCLOSE.
San Diego, CA.
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