Assigning A Contract
Ok...here is the deal. I have found a property worth 80k and the seller is willing to sell at 64k. I already have a buyer who is already approved for a mortgage that is willing to buy the property at 74k. How do I assign the contract? When am I paid my spread? Will the buyers lender have a problem with me being involved in the transaction?
I am still pretty new to some of the myself. However I am assigning a contract over tonight on a property.
Does the contract have a clasue that allows you to assign the contract? If so does it require an ok from the seller?
If the contract doesn't restrict assigning it to another buyer, you have an assignable contract. Generally you will be paid at the close of escrow. You need to be involved with the escrow instructions and make sure that they spell out how much everyone gets out o the proceeds of the sale.[ Edited by jeff12002 on Date 06/25/2004 ]
For a 10k spread, why would you assign unless he'll pay 10k for the assignment? Do a double close, you'll make more money.
[addsig]
But double the closing costs too. I don't see doing a double close unless it's a HUD and is forbidden.
The double close also cost you 105 up front from some lenders for you to have the financesd to buy the property up front in order to turn around and sell it .
Or have you found a way around that? Oh Please do tell. I'm so tired of losing 3-7k for loan fees and closing the first half in order to wait ten days for the profits on the back end of the double close.
Do tel do tell!
:-D
Sorry mates, that's 5 to 10% down cash before before a lender will even touch me or fund my deal