If you are looking for quick cash, pay close attention…
Once you have a deal locked up, you can quickly wholesale it to another investor.
If the house is privately owned, you “assign your contract” and a rehabber or buy & hold investor will essentially be buying your contract from you.
The same is true if you are buying from a bank, but the process is different. Instead of assigning the contract, you will close on the property and then close again on the same day with your buyer AKA “double close”.
When you are planning to do a “double closing”, I recommend using the local Realtor Board Contract. This is what all of the local brokers, attorneys, and title companies understand and expect.
When you are doing a single close AKA “assignment deal”, all you need to do is assign your contract to your buyer. The buyer will want to review your deal with the seller and if acceptable, they will close on it and your name never goes on title. Just be sure that you’re using a contract that is actually assignable! See my article on buying from private sellers here if you are not sure.
You will get paid at closing. Your name (or company name) will be entered into the HUD1 as a buyer’s line item.
Here is an example what an assignment agreement looks like:
You can create something similar to this in your favorite text editor on your computer.
What to Do After You Sign the Contract with the Buyer
As soon as you find a buyer to sell your deal to, you need to let your closing agent know.
Call him/her up and ask where to send the contract.
At this point, you should have 2 contracts… 1 with the seller, and a different contract with the buyer. The contract with the seller should already be in the hands of the closing agent.
Now, you have an assignment agreement with your buyer, which needs to go the the closing agent too.
Your closing agent will handle all of the paperwork, schedule the closing, and work with the title company to make sure that the property can transfer with a “marketable title”.
Your assignment agreement has to be “paid off” in order for the property to close.
All that is left for you to do is wait for the closing and then you can…
Cash Your Paycheck
Thanks for reading!
Best Regards,
Cameron Dunlap