Sorry this is so long in coming. Sometimes life intervenes. Good thing I took notes!
Anywho, the other night Steve Cook and friends from flippinghomes.com did a free, open to the public conference call. The topic was "5 ways to assign non assignable deals." If you don't know who Steve Cook is, you can find lots o info on him via flippinghomes.com.
Steve does personal coaching of other real estate investors. And he started out with a story about a student of his who was worried about the non-assignability clause on an REO property she wanted to wholesale. In case you didn't know, in Maryland, all real estate contracts are assignable unless they specifically say they are not. And virtually all REO contracts are specified non assignable. So this student was stumped. Steve coached her to dwell not on the problem, but on the solution. Good advice in all areas of life, IMHO.
He says he assigns non-assignable deals all the time. Here are 5 ways he does it. I won't bore you with the details, but if you do any wholesaling, this should be enough to stoke your fire.
1) Just do it. Show up at closing with your end buyer. With the funds sitting in escrow, and a buyer at the table, what are they gonna do, nit-pick over contract language? More likely, they'll settle.
2) Have your title company submit an assignment addendum expressly allowing assignment to the seller. This works best if done a day or two before settlement, because they really really really want to sell this property...
3) Add a second buyer to the contract with an addendum. A week or so later use a second addendum to remove the initial buyer. (not sure if the Hud1 shows the assignment fee in this case. Use with caution if expecting your buyer to pay you outside of closing.)
4) Create an entity, sell the entity. (You might want to get your lawyer involved in this one, at least the first time)
5) Double close. The most controversial of all! But he says he does them all the time.
Steve said at the start of the call that he had just thought of a sixth one! Unfortunately, after he got through the five above, he couldn't remember what the sixth one was. Oh well. Maybe next time!
If you want to listen in on the three upcoming calls, go here and get all the info.
Anywho, the other night Steve Cook and friends from flippinghomes.com did a free, open to the public conference call. The topic was "5 ways to assign non assignable deals." If you don't know who Steve Cook is, you can find lots o info on him via flippinghomes.com.
Steve does personal coaching of other real estate investors. And he started out with a story about a student of his who was worried about the non-assignability clause on an REO property she wanted to wholesale. In case you didn't know, in Maryland, all real estate contracts are assignable unless they specifically say they are not. And virtually all REO contracts are specified non assignable. So this student was stumped. Steve coached her to dwell not on the problem, but on the solution. Good advice in all areas of life, IMHO.
He says he assigns non-assignable deals all the time. Here are 5 ways he does it. I won't bore you with the details, but if you do any wholesaling, this should be enough to stoke your fire.
1) Just do it. Show up at closing with your end buyer. With the funds sitting in escrow, and a buyer at the table, what are they gonna do, nit-pick over contract language? More likely, they'll settle.
2) Have your title company submit an assignment addendum expressly allowing assignment to the seller. This works best if done a day or two before settlement, because they really really really want to sell this property...
3) Add a second buyer to the contract with an addendum. A week or so later use a second addendum to remove the initial buyer. (not sure if the Hud1 shows the assignment fee in this case. Use with caution if expecting your buyer to pay you outside of closing.)
4) Create an entity, sell the entity. (You might want to get your lawyer involved in this one, at least the first time)
5) Double close. The most controversial of all! But he says he does them all the time.
Steve said at the start of the call that he had just thought of a sixth one! Unfortunately, after he got through the five above, he couldn't remember what the sixth one was. Oh well. Maybe next time!
If you want to listen in on the three upcoming calls, go here and get all the info.
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