Posted by John on April 17, 2006 at 18:49:14:
Yes it can be done, Will it probably Not.
Most real estate agents contracts have a non-assignable clause. The agent will tell you it is illegal most likely. They are great about what is legal and anything they don’t understand is illegal.
Flipping when a realtor is involved??? - Posted by Jae
Posted by Jae on April 17, 2006 at 17:13:38:
Is it legal to flip a property when a realator is representing the seller? By flip, I mean get the property under contract and then assign that contract to another buyer for a higher price so the investor will make a small profit without using any money or securing a loan. I am not sure how this is done with a realtor since you must use a realators contract and you are not buying the property outright.
I understand how a double closing works, but I still do not understand how you can use this technique when a realator is involved.? Thanks for any help!
Jae
Yes - Posted by John Merchant
Posted by John Merchant on April 22, 2006 at 15:17:46:
No problem, just make sure the P&S Agreement does NOT have any such NON-assignment language in it.
As a matter of routine, I have all my contracts say the purchaser is my “LLC and/or Assigns”…and if Seller has a problem with that, we won’t do the deal.
I have yet to run into a Seller who had any problem with it…his/her goal is to sell, and he/she has little concern who or what the buyer is.
By the way, no RE agent or broker has any say in this…it’s his client who calls the shots, NOT the REA.
And if any such REA were to queer any deal of mine, based of what he likes or doesn’t, he’d find himself talking to the RE Commission very quickly as well as getting sued by me for unlawful interference in a contract.
I’m in the middle of such a REC right now, and the seller’s agent called me trying to pump me for info about what I was doing, if I was doing an assignment, etc…all none of his legal business.
I told him, “sure, I’ll discuss it with you and tell you all about what I’m doing, but then I’ll have to kill you.”
He laughed but got the picture and hasn’t mentioned it to me again.