Newbie with an easy question?

11 Replies

I feel like this is an easy question, just looking for an easy straight forward question. (Scenario): I find a seller, he agrees to sell his house to me at a good price, I plan to assign the contract to an end buyer. After I have the house under contract, do I take that contract to the title company? Or do I wait to get an end buyer to sign a contract to buy it then take both to the title company? Or does the end buyer talk to the title company on his own and then they call me and I bring in the contracts? Can someone give me an insight to what happens once everyone signed the right contracts, how it all goes down?

1 - You get an accepted offer with your name as :<your name> and as/or assigns.

2 - You sell the Purchase Agreement to someone else (the assignment) by using an addendum stating you are assigning the P.A. to them.

3 - You get paid your assignment fee when both parties sign the addendum

4 - The NEW buyer, based on the "assignment" closes.  You're gone.

or, there's a better way...

@Joshua Horn There are 2 ways to do it.

1. Assignment

With an assignment you sign the purchase contract with your seller and then sign an assignment contract with your buyer. Take both of those to your title company or the buyers title company to close the transaction. The buyer should pay you at least a deposit upfront and the remainder at closing.

One step I do that many people probably do not is I have the seller sign acknowledgement of the assignment contract as well. This both makes them aware of what my assignment fee is and releases me from liability if the buyer doesn't perform. You can assign a contract without notifying the seller, but you are still liable for the obligations of the contract.

2. Double closing

With a double close you sign a purchase contract with your seller and another purchase contract with your buyer. Preferably take both to the same title company to make it easier, although the buyer can use anyone they want. In this case you buy the property with your own cash or some sort of transactional financing, and simultaneously sell it to your buyer.

Originally posted by @Joe Villeneuve :

1 - You get an accepted offer with your name as :<your name> and as/or assigns.

2 - You sell the Purchase Agreement to someone else (the assignment) by using an addendum stating you are assigning the P.A. to them.

3 - You get paid your assignment fee when both parties sign the addendum

4 - The NEW buyer, based on the "assignment" closes.  You're gone.

or, there's a better way...

 What's the better way?

Originally posted by @Doug Pretorius :

@Joshua Horn There are 2 ways to do it.

1. Assignment

With an assignment you sign the purchase contract with your seller and then sign an assignment contract with your buyer. Take both of those to your title company or the buyers title company to close the transaction. The buyer should pay you at least a deposit upfront and the remainder at closing.

One step I do that many people probably do not is I have the seller sign acknowledgement of the assignment contract as well. This both makes them aware of what my assignment fee is and releases me from liability if the buyer doesn't perform. You can assign a contract without notifying the seller, but you are still liable for the obligations of the contract.

2. Double closing

With a double close you sign a purchase contract with your seller and another purchase contract with your buyer. Preferably take both to the same title company to make it easier, although the buyer can use anyone they want. In this case you buy the property with your own cash or some sort of transactional financing, and simultaneously sell it to your buyer.

 Thanks Doug for the good response. That's what I needed to know just take them to the title company after they're signed. What's a good amount to ask the end buyer for a deposit?

Originally posted by @Joe Villeneuve :

Make the offer in an LLC...then sell the LLC. Same buyer...same seller..just a different owner of the buyer (LLC)

 Yea I heard of that way, just to use that route when I'm making more then 10k or it's a property from a realtor, right?

Originally posted by @Joshua Horn :
Originally posted by @Joe Villeneuve:

Make the offer in an LLC...then sell the LLC. Same buyer...same seller..just a different owner of the buyer (LLC)

 Yea I heard of that way, just to use that route when I'm making more then 10k or it's a property from a realtor, right?

 That's the only way I do it.

Originally posted by @Joe Villeneuve :
Originally posted by @Joshua Horn:
Originally posted by @Joe Villeneuve:

Make the offer in an LLC...then sell the LLC. Same buyer...same seller..just a different owner of the buyer (LLC)

 Yea I heard of that way, just to use that route when I'm making more then 10k or it's a property from a realtor, right?

 That's the only way I do it.

Is there anyway you can help me fill in some blanks with my LLC to end buyer contract by any chance?