How Do You Get The Original Seller To Agree
Hi, I was wondering when negotiating the original purchase agreement with the seller. How do those of you who have done many assignments get the seller to agree to allow you to assign the property? Do you inform them that your plans is to purchase the property or assign the contract to another buyer within a certain alotted time? Please advise. Thanks
If the property is not vacant, contract assignments are difficult unless you are straight up with the home owners or you have a very good buyers list.
If the house is vacant, I ask for a key so that I can get repair estimates. I put the house on lockbox. I let certain people go by and look. Then I call the homeowner and tell him everything looks good, and that if they see somene at the house it is my partner who does the rehab work. Later when I confirm the closing I tell them that my rehab partner, they might have seen him at the property, is actually going to go on title for this one so he will be a the closing, I will only be sending the money .... hahaha.
In my opinion, and its limited to California, The assignment right is already built into the purchase agreement. However it is better to have it in writing.
I include in my agreement that I may market the property during the purchase escrow.
I define Marketing as including but not limited to, a for sale sign placed in the front yard, advertisements in local newspapers, input into the Realtors Multiple listing service and on the internet.
We put a lock box on the property at escrow and start showing it...
Now you better have a very good contract with the seller or things will try to unwind and this year I have had 4 sellers become more greedy...
The upside is the ability to flip faster...
With all of that said it is better most of the time to wait until you own to sell..
However that doesnt necessarly apply to a assignment.
In an assignment you are merely substituting a buyer for a fee. Most of the time it is not an issue to the seller.
For those of you who have little money , an option to purchase contract coupled with a shared revenue agreement with the seller may be the best method to aquire and sell.
The sellers like these better especially if they cant afford to rehad their houses to minimum standards inorder to sell for the highest value.
Just make sure youre protected prior to spending your money.. You should do this with a Deed of Trust unless you enter into a TIC agreement than you wont need the option or revenue agreements.
Sorry for rambling....
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Thanks guys for your input. Where do you put that I may assign the contract on the addendum? Or has your lawyers drawn up contracts to include this information.
Am I missing something?
65% of 185k is 120.5k Purchase the property for 110k subject to the existing loan of 105k after close go get a hard money second for your cost and be done.
And run to escrow on this deal... You dont want seller remorse....
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Nice Find!
Great advice from Ibuyhouses, get this under before you loose it!
Great Work! Keep us posted.
amfels07,
This is what happens when you follow it to the penny as it leads you to big dollars.
Great job and looking to see many more from you.
John $Cash$ Locke
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mccole,
One thing John Locke teaches is doing business the right way........ethics.......helping others out of their misfortune while doing business with them..... i have his Sub to Manual and recommended to anyone who wants to learn a creative way of doing business the right legal way!!
Happy Holidays to everyone,
Carlos
Hi Carlos,
I too have John’s manual. And you’re right – it’s great!
And I certainly hope no one thought I was referring to John or Michael when I was talking about things that are illegal or unethical. In fact, they are two of the most knowledgeable people I’ve seen on this site.
My comment was more knee-jerk, to other threads, where people have suggested ways of getting cash out with conventional lending – ways that are loan fraud, no matter how they dress it up. Thus, my poor little brain was stuck on a typical new-loan scenario, and I wasn’t even thinking about sub-to. Which, obviously, was the perfect way to go with your deal.
Again, congratulations.
And have a wonderful Holiday!
Just make sure in your lease option contract that it allows for subletting or subleasing.
-Sly