Posted by james(SO CA) on August 09, 2008 at 24:54:22:
quick question on l/o flipping(assigning contract):
I’ve come across something trivial but interesting on l/o. What if you want to generate quick cash and don’t want to be in middle of the deal. It suggests that you simply negotiate with the seller hopefully $10 option fee, and monthly lease to some number, then you simply assign contracts to a buyer/tenant and collect assignment fee. Once it is done, make sure to have the seller&buyer sign the release of liability so you are not on the hook. Do you use/have release of liability forms to release you from sellers and buyers?
If anyone had done this, I like to hear some specific details if how (formulas) to structure something like this, things to watch out for, do’s and dont’s. I can see that a seller might want big option fee(but my buyer want to pay as less as possible, seller has to feel comfortable or meet with buyer etc.). Do you most of the time, disclose how much you are going to make; and how do sellers respond?
My game plan is to generate quick cash to build reserve for bigger deals. I am in Southern CA btw and we have tons of REO’s espeicially in Riverside, San Bernardino, San Diego. Have a good weekend.
Thanks