What are the exact steps to assigning a contract to your buyer assuming I have a junker under contract and say I would like to profit $3-5K from the deal?
-Open escrow as an "Assignment"
-Meet with your 'wholesale buyer' and collect your fee.
-Contact escrow and tell them that you are 'assigning' to John Homebuyer.
-Contact seller tell them you are closing
in your partners name
-If you really want to be saavy, you can line up some financing by way of a hard-money lender or private investor so the financing will already be in place.
If your 'wholesale buyer' give you a hard time about paying before closing, take them into the escrow office or closing attorney and have them see the paperwork where you are 'assigning' your escrow to them. Explain that you need to collect your fee and it is their duty to close. I would recommend you get at least 50% and work only with seasoned investors that will close.. Try looking in the paper under the WeBuyHouses ads for serious investors.
What I do is line up financing as well so that I pass all my 'wholesale' deals on to my 'wholesale buyers' with financing in place. As soon as I 'assign' I collect my fee, contact the seller and tell them I am closing in my partners name and put the 'wholesale buyer' in contact with the lender I am using for the financing. Unless of course they are paying cash. If they say they have their own financing in place, like a bank, I definitely get paid upfront because banks have a hard-time financing fixer-upper properties and they take a long time to close.. So it is either my way or the highway if they want to buy my deals....
What happens if the buyer does not get financing or backs out? Do you go ahead and purchase the property yourself since you already have financing in place or what?
Here you go:
-Open escrow as an "Assignment"
-Meet with your 'wholesale buyer' and collect your fee.
-Contact escrow and tell them that you are 'assigning' to John Homebuyer.
-Contact seller tell them you are closing
in your partners name
-If you really want to be saavy, you can line up some financing by way of a hard-money lender or private investor so the financing will already be in place.
If your 'wholesale buyer' give you a hard time about paying before closing, take them into the escrow office or closing attorney and have them see the paperwork where you are 'assigning' your escrow to them. Explain that you need to collect your fee and it is their duty to close. I would recommend you get at least 50% and work only with seasoned investors that will close.. Try looking in the paper under the WeBuyHouses ads for serious investors.
What I do is line up financing as well so that I pass all my 'wholesale' deals on to my 'wholesale buyers' with financing in place. As soon as I 'assign' I collect my fee, contact the seller and tell them I am closing in my partners name and put the 'wholesale buyer' in contact with the lender I am using for the financing. Unless of course they are paying cash. If they say they have their own financing in place, like a bank, I definitely get paid upfront because banks have a hard-time financing fixer-upper properties and they take a long time to close.. So it is either my way or the highway if they want to buy my deals....
Best Riches,
Jeff Adam
[addsig]
What happens if the buyer does not get financing or backs out? Do you go ahead and purchase the property yourself since you already have financing in place or what?