Posted by Redline on January 05, 1999 at 21:30:18:
Jackie,
Do you have to wait until the close even when you’re not doing a simultaneous close? Can’t you just prepare a title search for the buyer (in good faith to show him he has a good chance of a successful closing) and collect your assignment fee upfront … and step out of the transaction right there?
RL
New question for Jackie in Dallas - Posted by Doris - Va.
Posted by Doris - Va. on January 05, 1999 at 19:07:58:
Hi Jackie
Just reread your 10 steps to getting started
and the followups. Then went to your new
article in HOW-TO “QUICK FLIP PRIMER”.
In your example you mention getting a $500.00
earnest money fee from the investor at the
time you fill out the Assignment of Contract
form. Your assigning (selling) the contract
to the investor for three thousand and that is
the amount of the check you get at closing
(plus the $10.00 too of course).
My questionis is --what about the $500.00 you
received from him up front. Wasn’t that a
depostit on the total purchase price you
agreed on?? It looked to me like you had
actually assigned (sold) the contract for
$3500.00.
In a lease/option deal I have learned that you
can receive an option consideration payment
which is separate or over and above the actual
selling price to your tenant/buyer but I did
not think this was the case in an assignment
of contract. Am I wrong about this?? Please
set me straight as I am trying to follow your
steps to get started. It is the best outline
of actual things to do that I have read.
Thank you so much for explaining it so
clearly. I have already contacted a couple
realtors today and am looking for a mortgage
broker and a title company to get my team
lined up. I plan on calling two ads tomorrow
morning to find investors.
Thanks again. If I get lucky I may be able to
go to the convention.
Happy New Year. Doris - Va.
Re: New question for Jackie in Dallas - Posted by Nate
Posted by Nate on January 07, 1999 at 01:43:58:
Where did you find Jackies article on the 10 steps? I can’t find it anywhere…
Re: New question for Jackie in Dallas - Posted by BR
Posted by BR on January 05, 1999 at 21:37:54:
Could you point me to the “10 steps to getting started and the follow ups” referred to by Doris - Va. Thanks, BR
Re: New question for Jackie in Dallas - Posted by Jackie in Dallas
Posted by Jackie in Dallas on January 05, 1999 at 19:42:48:
Doris,
There are several ways you can go when flipping.
If you have worked with an investor before and know they are going to come to closing with the cash - then you can just fill out the assignment form for the amount agreed to - then give the assignment form to the title company. In this case you would get all your assignment fee at closing.
I’d ONLY advise doing this if closing is just a few days away and you have worked with the investor before. Too many things can go wrong.
Since you are just starting out and don’t know the investors I would definitely advise getting an earnest money deposit (if not the whole assignment fee) for the assignment and have it held in escrow by the title company. It’s treated just like the earnest money (if any) that you put up when you signed the contract with the owner of the property.
The earnest money is applied towards the assignment fee - not added to it.
In this case you would need to modify the assignment form to allow for the amount of earnest money and the additional amount due at closing.
The investor would make the check out to the title company (not you) and you would turn it in, along with the assignment form, to the title company.
I’m so glad that the information I’ve shared about flipping is helping get so many people started in investing.
Success doesn’t happen by chance - it’s something we all have to work at. It sounds like you are doing the necessary steps to make success happen - keep up the good work and hopefully you can get in a flip or two before the convention. Hope to see you there!
Jackie
Here is the address - Posted by Warren
Posted by Warren on January 06, 1999 at 07:51:27:
BR,
You can find that message at:
http://www.creonline.com/wwwboard/messages/5630.html
Warren
Re: New question for Jackie in Dallas - Posted by Doris - Va.
Posted by Doris - Va. on January 05, 1999 at 20:22:32:
Thanks Jackie - now it all makes perfect sense. I really think I understand how to do this now. The realtors I talked with today didn’t have much to offer me but at least said they would call me if a property came up at below market price etc. I plan to look on my own and not just rely on them. I know there are some deals out there and I will find them. Thanks again. Doris - Va.
Ps. Sorry if the new email address is confusing but I ran out of storage space in my favorites folders so had to start a new email addrress. Next month when I get my new printer I can download (print out) these files and open them up again. Meanwhile I have had to copy all your steps and other info by hand to a notebook. Very frustrating but worth it.
Re: New question for Jackie in Dallas - Posted by Jackie in Dallas
Posted by Jackie in Dallas on January 05, 1999 at 20:44:25:
Doris,
Look for my next article about how to find houses for flipping…