Assignment contract for begginers ?

21 Replies

Hey everyone . New to the wholesaling side of business but very keen to learn and very motivated. I have a small budget of 300$ per month which is currently being used on marketing , couple apps and building the brand. I currently have some leads that I am working on. I have no proposed offers yet and I want to have a assignment contract before I make an offer .. I want to do it the right and legal way but don't have the $ in my budget to see an attorney to have one done. . what are my best options ? Or is it best to save up the $ and have an attorney write one up . I want to play this as safely as possibly . Thanks guys .

@Patryk Domanski sounds like you have a great plan!

What state are you in? If you're in Texas I can provide you the one we use. If not, then hook up with a reputable wholesaler and tell them you're looking for a deal and you want to see their assignment agreement before you buy any deals with them. OR find a local RE attorney to write you one up. 

Best of luck!

@Cameron Tope I'm actually in Illinois , appreciate the offer of help though . The main reason why I want everything done right as well is because Illinois is starting to introduce whole saling laws , so it's only a matter of time before they add more .. as of last week after my first whole sale deal in Illinois in a 12 month period , I have to obtain a real estate liscense to go through with any deal after that .. just another obstacle to over come !

If you are representing yourself as a buyer and have no ability or intention of closing that is called fraud by inducement. You are getting properties under contract by fraudulent means.

Originally posted by @Patryk Domanski :

@John Thedford I intend on telling the seller about the assignment . I am an honest person I'm not going around telling people I'm closing on their property. Once I have the capital I plan on going into fix and flips anyways . This is just the plan to get in . 

its all moot now IL just passed a new law outlawing wholesaling without a real estate license  IE more than one a year .. so I believe anyone who wants to follow the laws will now get licensed and their broker will help them with the proper contracts until such time as they have the experience and can sit for the brokers exam and be their own broker and only work for themselves. 

Originally posted by @Patryk Domanski :

@John Thedford I intend on telling the seller about the assignment . I am an honest person I'm not going around telling people I'm closing on their property. Once I have the capital I plan on going into fix and flips anyways . This is just the plan to get in .

If your plan/goal is to fix and flip, I’d recommend spending time at meetups and getting to know flippers in your area and seeing if they’d be willing to partner on a deal with you. If you bring the deal, that’s usually pretty enticing so long as you’re willing to work hard.  

Originally posted by @John Thedford :

If you are representing yourself as a buyer and have no ability or intention of closing that is called fraud by inducement. You are getting properties under contract by fraudulent means.

John, I'm curious if there was actual litigation about this in Florida or if it was just something you heard.  I'm not sure if you've heard, but Illinois just had a new law signed that appears to be aimed at eliminating wholesaling. I'm always curious to see how different states deal with wholesaling.  (disclosure - i've never wholesaled a property). 

thanks

The anti wholesaling bill in Illinois was recently signed by the Governor. See my blog post on Bigger Pockets for more details.

This bill was "coached" by the Illinois Board of Realtors. It has their best interests at heart.

You would need to find a work around. Transactional funding might be the ticket. Contact me for more info.