Remember that it does not have to neccessarily have to be an “option” to purchase in order to assign.
Here is how I did my first contract assignment.
Found a house that was 55% below market, made an offer. Got my offer accepted, put up earnest money, and set a closing date.
Put an ad in the paper advertising the house I now had under contract for 4k more than I had negotiated to purhcase it for.
Showed the house to a bunch of people who called on the ad 4 days later.
Met the person I chose to assign my purchase contract to at his bank the following day and signed an “Assignment of Contract”, had it notarized, collected earnest money from him equal to what I had in the deal,drove to the title company and gave the assignment contract to them.
Now I just go to the title company the day of closing and pick up my 4k.
The hardest part of the process is finding a house 55% under market.
I have read almost all the post on assigning contracts and now I am so confused. How does one assign a contract and is it allowed in Maryland? What other options are available for a newbie to take advantage of to build some money up for future rehab and retailing of properties? Could someone answer these questions in layman terms? Thanks.
Re: assigning contracts - Posted by vern(MD/DC/VA)
Posted by vern(MD/DC/VA) on December 24, 2002 at 07:13:35:
Assigning is allowed in MD and most other places. Assigning is like this: I get John Doe to agree to sell me his house worth $100,000 for $80,000. He puts it in writing, I have the right to buy his house for this price anytime within the next 6 months. If someone else wants to buy the house, they can not , since I have the option to purchase. I then take this signed contract and sell it to your for $5,000. You now have the right to purchase for $80,000.
You can do Lease Options, where you pretty mnuch sublet someones house to a renter.
Drop me an e-mail. I am also an new Maryland investor.
