Posted by Bronchick on November 16, 1998 at 10:49:31:
This method of “c*-oping” sounds a lot like a listing agreement. You can teach lease/options for a fee, but helping someone along in a deal is either engaging in the practise of law or acting as an agent, both of which require a license.
What is A Co-operative Assignment? - Posted by martin buckley
Posted by martin buckley on November 13, 1998 at 13:36:45:
Can someone please explain to me what a co-operative assignment is and how it works?
Thank You!
Martin Buckley
Re: What is A Co-operative Assignment? - Posted by JIM FARR
Posted by JIM FARR on November 17, 1998 at 12:23:34:
I CALLED CLAUDE DIAMOND J.D./Mentor on the above discussion and here is his answer to me
" A c**perative assignment is nothing more than a Lease with option to purchase that has been negotiated with certain subject to’s."
“A c**perative assignment is a contract for A LEASE PURCHASE in which the assignment or sale of the contract is subject to the approval of the owner. The beauty of this type of strategy is that you are not liable for the monthly payments or a large option amount; you are however a principle party (and not an agent) within the agreement. This is a win/win for both partys.”
"There will be discussion on this subject just like my consulting strategies but the bottom line is not to represent or create an agency relationship. If this method is uncomfortable you can always form a corporation and hire a broker to represent your deals or just get a real estate license
Its a great way to do deals without the overhead and liability."
Hope this clears up this subject -Jim
Re: What is A Co-operative Assignment? - Posted by Irwin
Posted by Irwin on November 14, 1998 at 07:53:34:
In what context did you hear the term used?
Re: What is A Co-operative Assignment? - Posted by martin buckley
Posted by martin buckley on November 14, 1998 at 14:39:20:
Dear Irwin,
Please read the success story “$1650 Profit On My First Lease Option” and let me know what you think.
Thank You!
Martin Buckley
Re: What is A C******ative Assignment? - Posted by Irwin
Posted by Irwin on November 15, 1998 at 14:39:38:
I read Larry Hoffman’s success story. Basically, he found a land contract for sale, but couldn’t make a $6,000 cash payment for the equity. So he did what he called a “c*****tive assignment”. (The Sensor has banned this word. Why???) This enabled him to control and sell the property, pay everyone what they had coming and make $1,650 for his efforts.
I still don’t know what a co-operative assignment per se is, but it sounds like a simple contract assignment where the assignor (seller) remains a participant i.e. he c*ates in the sale and profits. At least, that’s the way Larry’s case worked out. In fact, the contract seller came out much better than he would have had Larry been able to pay hime the $6,000.
I’m doing something similar right now. I bought a home from a lady just before a foreclosure sale. There were numerous liens against the property, some valid and some not. Instead of giving her a fixed dollar amount for her equity which would have pretty low considering the liens, I agreed to take title to the property, cure the default, contest and/or settle the liens, sell the property and split the profits with her. It seemed like the easiest (and fairest)way to make a deal with her quickly since there was a complicated title situation, but a ton of equity. I suppose this could be called a cative agreement of some sort.
Since Larry trained with Claude Diamond, perhaps this is something that Claude covers more specifically in his course.
Hope this helps.
Re: What is A C******ative Assignment? - Posted by LHoffman
Posted by LHoffman on November 16, 1998 at 07:17:48:
Hey Irwin and Martin
A Co-operative Assignment is simply a Lease/Purchase, but without the control. In other word, a lot of times the seller of the home does not want to relinquish control to his/her house. The seller doesn’t want someone in there to pay there monthly payments, just because they can. They want to screen the tenant/buyers, they want to meet them and speak to them. They want total control over the Lease/Purchase. In this type of situation, a Co-operative Assignment is the perfect solution. With a Co-operative Assignment, you show the seller how to set up a Lease/Purchase, how to screen the potential tenant/buyer. You supply them with the correct contracts to get the job done. In other words, you supply your time, energy, and knowledge for a PRICE. This is exactly what I did, since the seller wanted a little control over the deal. I suggested a Co-operative Assignment. We agreed to split the option consideration down the middle. option consideration is what a seller gets when a tenant/buyer wants to purchase the home. This option consideration is non-refundable. This is how I made $1650.00 in only 11 hours. I recenly did another Co-operative Assignemt and made $1500.00 in only 5 hours worth of work. Now I know these aren’t the biggest profits, but they are a start…
Larry Hoffman
Re: What is A C******ative Assignment? - Posted by Irwin
Posted by Irwin on November 16, 1998 at 08:14:11:
Larry: If you are actually working for owners and helping them sell in return for a fee. You are treading very close (probably not close, but upon) acting as a real estate broker. The difference between brokering and investing is CONTROL. The broker works for the owner and doesn’t control the property, whereas the investor has equity ownership and is not required to be licensed. Your agreements might not be enforceable in Court if they are seen as commission agreements or fees for selling. Be sure that whatever agreement you enter into gives you some rights of control, even if not the absolute final say so. Also, I suggest that you don’t go too public with what you’re doing, especially around Realtors. They get very testy about this kind of thing.
Re: What is A C******ative Assignment? - Posted by LHoffman
Posted by LHoffman on November 17, 1998 at 06:45:07:
Hey Irwin,
But if you give option consideration to the seller, is this still acting like a Real Estate Agent. Since I gave them all option consideration, I have an equitable interest in the property now. I just don’t see how this can be a problem.
LHoffman