Flipper/Rehabber · Las Vegas, NV · Member since 2014 · 124 posts · 35 votes
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.
But into a land trust and assign the beneficial interest of the trust
OK, I'll bite how does he put it in a land trust without closing it himself? Remember, he's dealing with a smart seller (the bane of wholesalers) who's not allowing assignment and he wrote an offer as him or assigns. Seller said to get lost then.
But into a land trust and assign the beneficial interest of the trust
OK, I'll bite how does he put it in a land trust without closing it himself? Remember, he's dealing with a smart seller (the bane of wholesalers) who's not allowing assignment and he wrote an offer as him or assigns. Seller said to get lost then.
My understanding is the seller did not accept him signing an assignable contract.
Instead of signing the contract as himself, he can sign a the trustee of a trust, in the name of the trust.
Flipper/Rehabber · Las Vegas, NV · Member since 2014 · 124 posts · 35 votes
5y
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.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
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?
Real Estate Agent · Joplin, MO · Member since 2018 · 112 posts · 96 votes
5y
@Jack C. “Wholetail” it with a purchase. If the deal is good enough, I would say just buy and resell it. I recently bought a deal from a wholesaler using private money. It was expensive (3 points, 9.95% interest), but it’s still a heck of a deal so we figured it out.
Also like the higher, non-refundable earnest money idea.
Often we use the two offer approach. I can give you X and close now or I’ll pay you X if you carry the note for 5 years. A little different situation, but similar approach could work.
Raleigh, NC · Member since 2019 · 9 posts · 5 votes
5y
@Jack C.
I've alway put the buyer as _________ LLC or Assigns.
My understanding is that all contracts are assignable regardless of the “buyer name” listed on it.
Why does the seller care who the actual entity buying it is? As long as there is performance of the contract and penalties in place for non-performance.
Flipper/Rehabber · Las Vegas, NV · Member since 2014 · 124 posts · 35 votes
5y
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?
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?
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.
Flipper/Rehabber · Las Vegas, NV · Member since 2014 · 124 posts · 35 votes
5y
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.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y
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.