Wholesale Flip - Posted by MIke

import · May 18, 2011, 3:04pm

Posted by Mike on May 31, 2011 at 20:24:13:

Thanks for the reply. No I’m in Ok, I was just curious how the contract reads. Do you happen to have a link or can you email it to me?

import · May 18, 2011, 3:04pm

Posted by MIke on May 18, 2011 at 15:04:36:

Here is a scenario:
I find a house that would be good to wholesale & get the seller to sign a contract that allows me to assign to another investor. I give the seller $100 earnest money.

I find an investor that gives me $300 earnest money & I assign to him for $10,000.

Now the question, what if that investor does NOT close with the seller after I assign to him?

Am I still obligated to the seller to close or did that obligation cease once the assignment occurred?

Thanks

import · May 30, 2011, 10:45pm

Re: Wholesale Flip - Posted by Jim (FL)

Posted by Jim (FL) on May 30, 2011 at 22:45:04:

In Florida, the state approved contract has an assignability section. I check the box that says: seller may assign and therefore be released of liability.

If the seller signs my contract, they have agreed to my assignability clause.

So when I assign to the end buyer, I usually collect a portion of my assignment fee up front (non refundable and as much as possible) and the remainder at closing.

If the end buyer does not perform, the seller can sue them for non performance or breach of contract. Essentially, they have assumed the responibility set forth in the original contract.

import · May 21, 2011, 11:19am

Re: Wholesale Flip - Posted by woody

Posted by woody on May 21, 2011 at 11:19:09:

I assign and collect the full assignement fee and am out of the deal before closing. The assignment agreement states this and all three parties agree and sign. Now it is between the end buyer and seller. I’m out.

import · May 19, 2011, 7:54am

Re: Wholesale Flip - Posted by Ken

Posted by Ken on May 19, 2011 at 07:54:54:

If you gave $100 earnest money you only should be getting $100 back to cover that not $300.Assuming there were no title issues as the reason your buyer did not close yes you would be obligated to close,it was your word and signature that promised to close,the seller had no agreement with your buyer,but as a practical matter the seller would most likely just move on to another buyer unless he found out you got a $10000 assignment fee then who knows what he would do.Seems to me if someone puts down $10000 they will be able to perform.I get my assignment fees at the closing and that is most likely when you will get yours also

import · May 31, 2011, 12:15pm

Re: Wholesale Flip - Posted by Mike

Posted by Mike on May 31, 2011 at 12:15:06:

Hi,

Do you have a link to that form. The one I found online was the Realtor form and I don’t see the section you have described.

Also, you wrote, “I check the box that says: seller may assign and therefore be released of liability.”

Did you mean buyer may assign?

Thanks

import · May 21, 2011, 4:33pm

Re: Wholesale Flip - Posted by Ken

Posted by Ken on May 21, 2011 at 16:33:28:

Why would the seller agree and sign off? I sell my contracts to only a few different people,and don’t even write a contract if I wouldn’t close if I can’t sell the contract,I stay involved till the closing and tell the seller we are putting it in my friends compant name since he is the one coming up with the money.Most people around here use hard money and do not have the assignment fee or won’t pay it till the closing anyway because they are nervous about the seller performing.Not a lot of wholesaling going on here in upstate NY

import · May 31, 2011, 12:24pm

Re: Wholesale Flip - Posted by Jim (FL)

Posted by Jim (FL) on May 31, 2011 at 12:24:27:

Yeah I was celebrating memorial day yesterday (sippin)
and meant to say buyer may assign.

Anyway we use the as is Farbar. Are you in Florida
too?

import · May 23, 2011, 6:58pm

Re: Wholesale Flip - Posted by Woody

Posted by Woody on May 23, 2011 at 18:58:34:

Sellers do agree and they do sign off. They want to get the property sold. I offer the deal to anyone who wants to buy it, and they need to have the ability to buy. The owner approves the end buyer and I’m released. The seller has to perform and if not the end buyer will need to go after the seller I guess. It never happens; the seller wants to sell. If the end buyer does not have an assignment fee, money in the deal, they don’t get the deal.