Assignment contracts in DFW

5 Replies

Hello, I’m a real estate agent in DFW. I have recently closed on a home where the seller had an assignment contract with her insurance agent (I was representing the buyer). We closed on it and her insurance agent received 12k from the transaction simply for listing the home. I am wondering how one can do this, and if this is something I should look into doing to expand my real estate business as an agent (assignment contracts that is)

@Maria Lopez OK that is strange. Was her insurance agent also a wholesaler? Was the property listed with a realtor? It all sounds pretty fishy to me.

As for assignments, you are going to get comments from both ends of the spectrum, but I will give you my 2 cents. I think you will earn a lot more doing assignments (wholesaling) than you will doing traditional real estate agent transactions. I think its definitely something you should consider. Feel free to reach out to me if you have questions!

Yes he must have been a wholesaler, he mentioned he does transactions like it all the time. 

So Lydia, how do you get people to sell you their home or enter an assignment contract and agree to pay such a big fee to you just for listing their home? Sorry just doesn’t make much sense to me how it all works. 

@Maria Lopez Fair enough question. I have found that my niche is vacant houses. Im great at finding them. There is usually always a story, because who the heck would just let a perfectly good house just sit vacant and rot away. Once I get the story, I solve the problem (there is always a problem) and I buy the house. Example: great house in Farmers Branch, had a reverse mortgage. Owner passed away, his three kids never probated his estate because no one wanted to be financially responsible for this upside down house. House sat vacant for years. I called up the heirs and said hey If I can pay you something, will you sell me this house? They were skeptical, they had gotten an agent to run comps after the father died and agent told them house was worth much less than the payoff for the reverse mortgage. The big thing with them was that they didnt want to spend 1 dollar on this process. They didnt want to see the house. They wanted to sign a piece of paper and get a check. So I did all the leg work and they signed the papers and got a check. Bank wouldnt foreclosure, still not sure why not, but I come along and find out that reverse mortgages can be short sales. Very straight forward process, lender sends appraiser and will accept 95% of the appraised value as the payoff. House was in terrible condition, appraiser shows up (he had clearly never been in a crappy house before lol) he takes a couple pics and gets out of there as fast as he can. Appraisal came in super low and I only had to pay 95% of it. Wholesaled it for 25K more than what I had it under contract for. Everybody got what they wanted. Perfect example of a scenario where problem solving pays off.

Does this help you have a better understanding?