assignment contracts

[R Roach]

I want to assign contracts in Texas. Are there title companies that allow assignment contracts? Does anybody know what the guidelines are in Texas? Is it even possible? I have a property ready to be tied up, but I don't want to mess it up. I have several buyers lined up, but I want to control my profit margin by negotiating the price, both with the seller and end buyer/investor. If I can't do assignments this way, can I do assignment fees with investors in Texas?

rdroach

[Andrew Massaro]

Why would the buyer have to come out of pocket for the assignment fee? That will probably kill the deal.

You negotiate a purchase price with the seller and get it under contract. You, then, mark it up and pull in a buyer for the total price - purchase price plus markup. Then, you assign your purchase price, and it's done. The buyer needs to get financed for the price he is buying the property at, UNLESS he chooses to pay part out of his pocket.

To be honest, most deals these days are cash anyway. And a title company should take an assignment contract on a cash deal. However, if they won't, you can always get a purchase contract signed between the seller and buyer, for the entire amount. And then attach a lien invoice to the contract, equivalent to your assignment fee. Send both pieces of paper to the title company, and keep tabs on the closing. The title company will pay you your fee (lien) upon closing.