Flipping Property
Just bought our first property, a bank owned as is.
Found to have a lot of unexpected repairs, and just recently heard of a way to still invest but without all the hassle, time and expense by flipping the property prior to all the repairs. Does this really work is it legal ? Can all contracts be assigned, or is this to be done with private sellers only. Comments please! Thanks 
Mikkie,
I am a Contractor / REI in Northern New Jersey and with a few exceptions will take an Assignment from another investor.
When you purchase "AS IS" repairs should not be "UNEXPECTED."
Good Luck!
Frank
If you wrtie buyer may assign contract as one of your terms. As a Florida agent our contract has a choice of may not be assigned, may be assigned but not released of libility, or may be assigned.
Make sure you read your REO purchase contract and especially any addendums. Many times banks will write into their addendums that the contract cannot be assigned.
Just make sure you double check.
All Contracts are assignable unless specifically prohibited; however, even though one may assign a Contract, liability and obligations cannot be assigned (if it went to court, you could be held liable for the actions of the assignee or lack thereof).
[addsig]
Then it is not necessary to include "and/or Assigns" in the name section of the contract to still have the ability to assign?
mikkie - have you purchased this property or is it under contract. If it is under contract, then you can flip it without al tha hassle, if the contract has provisions for flipping. If you have already purchased the property and don't want to do all the repair, then you can sell it to a rehabber at a small profit. Just be sure to leave enough room for the rehabber to make profits.
Ceinvests, no it's not necessary but it is still a good idea; just because the law says one thing doesn't mean the other party understands it, so disclosure is always a good idea.
[addsig]
You should ALWAYS indicate in both your agreements how long is a reasonable time to repair. Don't leave this open for discussion by not specifying a time that is required to fix the repairs. If you don’t do this, you will blow the deal and the deal will probably start to crumble due to misunderstanding and all the other crap that comes with not being specific up front with all parties.
The agreements are the sole of this business….do your homework and don’t leave things open for argument.
Thanks Joda,
What are typical timeframe for major repair to start and complete, especially the one that make the place inhibitable - AC/heater, water etc.?
What other neccesary items need most people forget and not put them in that can cause the deal to crumble?
Hello, I am also interested in what all I need to cover in a L/O contract. Does anyone have a sample L/O contract I can model mine after? I just bought my first investment townhouse property in Denver and am currently talking with a few possible buyers.
Also, is it possible to have you tenents pay monthly to you via ACH or auto draft banking?
Colin