Can someone clarify the assignment steps?
The only similar situation was where I had a contract with a seller for $123K. Another investor wanted the property for $130K. Instead of having to do a double close, I signed a cancellation of contract with the seller for the difference of $7K. A new contract was written between the original seller and end investor. At closing, the seller pays me $7K as a misc expense.
So---with assignment how would this have been different?
1. Sign contract for $123K with seller
2. Assign my contract to new investor for $7K (is the $7k paid in cash for the assignment or is it paid at closing?)
3. Is there still just one contract for this transaction (the original between me and seller. only difference is the assignment to new investor)
4. One closing or two?
Thanks in advance for clarification
Also does it need to be written in the agreement that you have the right to assign??
Thanks
BTW--In my contract with the seller I do have "right to assign" in the conditions section.
I'm just trying to clarify how assignment works differently than the "Cancellation of Contract" i explained in my first question.
Too- no matter how you wholesale the property, if you have the original seller sign a POA, do you need them involved in anything past the signing of the original contract? You would have the right to sign in their place correct?
Thanks for any help
Thanks