Ferndale, MI · Member since 2014 · 12 posts · 2 votes
Hi all! Everyone here is such a great help. Does anyone have any assignment contract resources that I might be able to use for a starting point for my own? I have found a few, but I can't get any clarification on exactly what is required for these contracts in Michigan. Seeing a contract that is in use will help me to feel confident upon moving forward. It is understood that any contract should (and will be) looked over by a Lawyer as to avoid any legal ramifications.
@Michael Heal I'm in Michigan too. We're very lucky here as real estate investors for many reasons. First, we have a number of markets that have low cost (not garbage areas), low tax, and high rent....can you say easy cash flow?
That means it is pretty easy to have houses set up to wholesale to other investors as rentals. When we do this, in Michigan, we just make all of our offers in the name of an LLC. This way, instead of having to deal with double closings, "assignments", etc..., we just sell the LLC (this is our wholesale) with the purchase agreement still to be executed. Then the new owner of the LLC executes the PA.
This is the second "lucky" thing for REI in Michigan...our LLC's only cost $50 to setup...with EIN number. We have at least 10 "on the shelf", ready to go at a moments notice to make offers.
I talked to couple of RE attorneys here in MI for reviewing my contracts including Purchase Agreement, Assignment Contract and Joint Venture Contract with another wholesaler.
They asked for $250 to review these documents instead of drafting new ones.
And it would be money very well spent! $250 spread over how many transactions....what would be the cost per transaction knowing you had documents that could e enforced? Money well spent, sir! :)
Thank you for the input. Do you know if conventional lenders will lend on an assigned contract, or am I pretty much limited to cash buyers on the retail side?
That depends on the lender, but if the real reason for your questions is if you can gtet financing on an assigned contract, the answer is yes
Nick, I think what Joe might mean is that it's not impossible to get a conventional loan with a contract that was assigned to you, in this environment, pretty hard, but not impossible.
Most getting into real estate like to follow what they want to hear, they also don't have a BS Meter, being told not to do something is not something people like to hear, they will opt for the positive reinforcement for their ideas. A wise, mature business person listens to learn rather before they act and being told no is part of learning. Good luck :)
Nick, I think what Joe might mean is that it's not impossible to get a conventional loan with a contract that was assigned to you, in this environment, pretty hard, but not impossible.
Most getting into real estate like to follow what they want to hear, they also don't have a BS Meter, being told not to do something is not something people like to hear, they will opt for the positive reinforcement for their ideas. A wise, mature business person listens to learn rather before they act and being told no is part of learning. Good luck :)
What Bill said,...and let me add this. There are mainly 2 times you are going to need to find these funds before, and up to closing.
1 - For POF, and...
2 - To close.
The two don't have to be the same funds, or the same source...whether or not there was an assignment involved or not.
Thank you for the input. Do you know if conventional lenders will lend on an assigned contract, or am I pretty much limited to cash buyers on the retail side?
That depends on the lender, but if the real reason for your questions is if you can gtet financing on an assigned contract, the answer is yes
Joe Villeneuve Hello Joe. I'm from Michigan as well. I've heard of the LLC strategy. I would like to use it. Can you call me at? I can't post a number or email. However if you google my name you will find my number. Sotero M Lopez II. Thanks
Joe Villeneuve Hello Joe. I'm from Michigan as well. I've heard of the LLC strategy. I would like to use it. Can you call me at? I can't post a number or email. However if you google my name you will find my number. Sotero M Lopez II. Thanks