Seller won't accept an assignable contract, what do you do?

Question

OK so I've been buying and selling contracts, flips etc. for about three decades and I run into this from time to time. I've developed my mechanisms to get around the non-assignable component. In some instances as in short sales, or bank REO properties an assignable contract won't be accepted, so, what is your work around? Let's share some ideas! Thanks.

Steve Morris · Answer

"Seller won't accept an assignable contract, what do you do?"

Well, if you implied you were the true buyer, I'd keep my word and buy it.

In the future, you should look for dumber sellers to exploit.

Bill B. · Answer

I bet if you offer a $10-$20,000 non-refundable earnest deposit they would suddenly be onboard.

If you’re going to tie up a seller’s valuable property in a very hot market for 30-60 days you should pay for that.

If someone was selling a car or a motorcycle for $5,000 there is ZERO percent chance they would hold it for you for 30-60 days without a non-readable deposit, why would you do that with your house?

Bruce Lynn · Answer

See if you can buy in the name of an LLC....then sell the LLC (more or less same idea as the trust.)

Plenty of sellers won't allowed assigned contracts as there are too many people who won't close if they can't resell it before closing and that's what gives wholesalers a bad name and reputation.   That may not be you, but there are plenty of people who want to wholesale as they don't have the money or resources to close.

John Jack R. · Answer

To help everyone out here. A contract can be treated rather much like a commodity, if you hold/own the contract you control the property. And as to individuals talking about exploitation. Then maybe Realtor should be barred from buying property from their clients. I talk to realtors all day long who say that they are Flipper's also. Many of the flip opportunities I see listed on the MLS are properties purchased by a licensed realtor who thought they would get into the flipping game and learned to their cost they really did not know everything.

In the broader sense of the term, relating to trust law, a trust is a centuries-old legal arrangement whereby one party conveys legal possession and title of certain property to a second party, called a trustee. While that trustee has ownership, s/he cannot use the property for herself, but holds it 'in trust' for the well-being of a beneficiary. Trusts are commonly used to hold inheritances for the benefit of children and other family members, for example. In business, such trusts, with corporate entities as the trustees, have sometimes been used to combine several large businesses in order to exert complete control over a market,[1] which is how the narrower sense of the term grew out of the broader sense.

Source is Wikipedia

Marc Winter · Answer

I like trusts, but you could accomplish the same thing with an LLC.

Mike S. · Answer

@Jack C.

But into a land trust and assign the beneficial interest of the trust

Steve Morris · Answer

My understanding is that all contracts are assignable regardless of the “buyer name” listed on it.

Only if contract allows (ie a clause stating assignability in PSA) and seller agrees.

In our PSAs, you have one of three:

1) Not assignable OR

2) Assignable only to an entity controlled by original offeror (usual) OR

3) Assignable to anyone (which I strongly recommend against).

John Jack R. · Answer

Joe S. I posted the solution further up here it is.

To help everyone out here. A contract can be treated rather much like a commodity, if you hold/own the contract you control the property. And as to individuals talking about exploitation. Then maybe Realtor should be barred from buying property from their clients. I talk to realtors all day long who say that they are Flipper's also. Many of the flip opportunities I see listed on the MLS are properties purchased by a licensed realtor who thought they would get into the flipping game and learned to their cost they really did not know everything.

In the broader sense of the term, relating to trust law, a trust is a centuries-old legal arrangement whereby one party conveys legal possession and title of certain property to a second party, called a trustee. While that trustee has ownership, s/he cannot use the property for herself, but holds it 'in trust' for the well-being of a beneficiary. Trusts are commonly used to hold inheritances for the benefit of children and other family members, for example. In business, such trusts, with corporate entities as the trustees, have sometimes been used to combine several large businesses in order to exert complete control over a market,[1] which is how the narrower sense of the term grew out of the broader sense.

Source is Wikipedia

Joe S. · Answer

You said that you had workarounds. You keep asking other people for their workarounds. Maybe if you share your work around other folks will reciprocate faster.

John Jack R. · Answer

Yes I do as well. The question is Larry if the seller, generally speaking that the property owner but the listing realtor agent doesn't except assignments or and/or assigns, What is the solution?

Seller won't accept an assignable contract, what do you do?

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