How do I "SCREEN" an assignee investor???

What a fabulous question, I eagerly await a response - along with you

Your post pretty much answers your question, HisChosen. Before offering a specific property, I'd recommend a face to face meeting, or if you aren't in the same area, a long phone conversation, to make sure you are thinking alike regarding the deal.

All of your suggestions are in order, plus viewing his tax return if possible, if he claims experience in doing this. Also, if he is truly an investor, he should have the cash to close the deal, and it would be in a bank account or line of credit that could be proved by a bank statement.

You are wise to think about these things before you rely on him to take over the contract, since it would reflect badly on you if he fails to perform.

cactusbob

Cactus Bob is absolutely right... Very wise! In addition, my advice is never put all your eggs in one basket. So always have another buyer or two lined up. Don't count on just one, because anything can happen after they sign the papers, that's what escape clauses are for. Even if you do deem them reliable they can still change their mind and decide not to buy it. So I recommend having several back up buyers, just in case. After all this is your name and you want to keep it in good standing with whoever you deal with!

Another question,

Should you try to sell a house, that your going to make an offer on? Meaning - If I have been communicating with the seller, and got there bottom line - Should I try to tie it up on contract, before trying to sell it? Or can I submit it, to see what kind of offers I can get, so I know what my bottom line is to the 'original' seller.

Regards, and Happy Hunting

Elena M hit it right on the head! Having a list of buyers will go along way in getting that deal done and at worst case... Contingency is your best friend!
rand

In my opinion, I wouldn't advertise for it unless you have it locked up. Otherwise a more experienced investor will go in and take it out from under you. Also along those lines is you can't technically advertise for a house that you don't have equitable interest in. In other words, your name has to be attached to that property somehow in order to have the right to market it.

I was curious about this myself and I think the responses are very helpful.
Thanks!

Not only that, you also can request the buyers to make nonrefundable deposit of 500 to 1k into escrow. If the buyer default, the deposit is your to keep and you can take the contract to other buyer and you lose nothing, but only gain between 500 to 1k which you can pour it into more marketing for your real estate business.

Marcus

I really enjoy reading your responses they are very helpful specially for newbies like me;-)
thanks a lot
Keep it up please

Rania

Like they said in the comments above me. You can ask the buyer to show you his or her recent bank statement. Perhaps even go to the bank with them so they can show you whats current. I have heard of people who left between $8k and $15k of the deposite money on the table cause the deal didnt fall though. That you get to keep. So many different ways to make money in real estate I Love It.

This is a topic I had not read about before. There is a lot of information on this thread for potential buyers. If your buyer is in another city or another state would you have them fax or email the documents -eg bank statement?

I'm working on my buyers list and from what I've learned on here you should ask your buyer what kind of funds they have available when you put them on your buyers list. That way you know before hand the top buyers on your list. Cash buyers are of course the best because you can close quickly. When you add them to your list just specify what type of buyer they are. I hope this helps I'm new and still learning as well...

One thing that happens with all of the banks in this area is Proof of Funds is required as part of the offer. I am going to follow suit and require POF's from all of my buyers.

Thanks,

Scott

You can usually judge by the willingness to give a descent earnest money deposit. I would ask for 1500 no less. If they are a serious buyer then this is not an issue. Especially if your escape clauses are in place. Submit the offer with proof of funds required by a specified date. Have a back up plan! Much success to you....Lubertha

I've heard of this, but I've noticed that the list varies from a couple questions to a long list of questions. Is there an all purpose set of questions that when you pick up the phone for the first time to see if this property fits the bill-- these are the questions you ask!

Thank you for all the knowledge that you all provide

I recently ran across an article resolving this very issue. And I got it right here, and I hope the creater of the article doesn't get mad at me for sharing it with you guys lol. So yeah I hope it helps, and in no way am I taking credit for this, I'm just passing it on to people who need it.

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Posted by "sistreat"

Posted on: Sat, 03/14/2009 - 23:49

"Essential Contract Clauses II
by Bill Bronchick

In a previous article, we discussed the importance of learning to use the "standard" real estate broker contract rather than the "seminar" contract when dealing with real estate agents. The following are some essential clauses and modifications I use when selling a property:

Limited Inspection Clause - Most standard broker contracts give the buyer the right to make the contract contingent upon the right to do a thorough inspection before a certain date. Make certain that the inspection period is short and that the inspection must be done by a licensed (if they are in your state) professional inspector. Limit objectionable items to roof, plumbing, electrical, heating and structural defects. An open-ended inspection clause will permit the buyer to "weasel" out of a contract because the garage door squeaks.

Choice of Escrow Company - As the seller, I insist on the right to choose the title or escrow company so that I remain in control. A conservative or uncooperative escrow or title company can make life very difficult if you are trying to do a creative deal.

Qualification of Buyer - The most important thing to keep in mind when selling is that time is money! The single biggest mistake sellers make is allowing an unqualified buyer to tie up their property under contract for two months. Do not believe any claims of the buyer, his agent or mortgage broker about their ability to qualify for a loan. You should know exactly what the qualifications are for an FHA or FNMA loan in your area and qualify the buyer yourself.

I use the following clause:

"Within 48 hours, buyer shall provide seller with buyer’s complete financial and credit information for seller’s approval. Within 72 hours after receipt of such information, Seller may terminate this contract and refund buyer’s earnest money if, in seller’s sole opinion, buyer does not have the creditworthiness to qualify for a loan from a third party. Seller’s decision and opinion shall be final in this regard, and buyer shall have no further recourse after return of this earnest money deposit."

NOTE: Be certain you do not engage in illegal discrimination in rejecting a buyer's credit worthiness.

Permission to Contact the Lender - I hate being in the dark! I always want the ability to control the entire loan process and be able to get information from the lender along the way. The buyer's lender won't talk to you directly, without express written permission of the buyer.

To remedy this problem, insert the following clause:

"Buyer hereby gives express permission to all parties, including lenders, employers, financial institutions, credit agencies, mortgage brokers and real estate agents to release any appropriate financial information to the seller."

Now you can take control, get on the phone and scream "What's holding up this loan!"

I am just catching up with this thread with such great info. One thing on the Proof of Funds that Scott mentioned above...if I understand it correctly (and I’m not sure I do!)….basically a buyer could go to that Coastal Funding (www.coastal-funding.com ) and get a Proof of Funds certificate instantly on the internet (as I see several do on this site themselves), so in essence, while it’s great to use as a “no money down” and stalling technique for yourself, just merely requiring Proof of Funds from your buyers (assignees) would not be sufficient (if you don’t know them at all) due to companies like this, correct? Or does coastal funding only fund the escrow amount and would not provide Proof of Funds for the ENTIRE transaction?

If I’m not correct, then I am sure even my post doesn’t make sense

I know there is a lot more info above that is great for qualifying...I just wanted to dig in on this note, and make sure I get this point.

Just trying to figure all of it out...off to read more threads and understand everything!

Thanks!!
Louisa