How to Wholesale Real Estate: How to Fill Out an Assignment Contract

Greetings, blogosphere!

Well, I had intended on posting this video last night as a Saturday Night Reader Mail, but then when I went to upload it to YouTube it was too long (13 minutes), so I had to go back and try to edit out 3 minutes of the video (YouTube’s time limit is 10 minutes), which didn’t work out so well. Then I decided to just re-record the whole thing, but I kept going over the time limit by like 20 seconds or so. This went on for about 2 hours, and at 2am I finally gave up and went to bed, where I had sweet dreams of what my life would be like if I wasn’t always fighting with technology. Or techmology, as Ali-G calls it.

Anyway….I started from scratch this afternoon, and managed to get ‘er done (with 15 seconds to spare- woohoo!)

In this video, I explain how to fill out (and when to use) the assignment contract as well as the option to purchase contract that I’m giving away up there in the right corner of my blog.

I hope you likey.

Got questions about the video?

Feel free to leave them below, and I’ll be happy to answer.

Over and out.
:)

P.S.
I have something very exciting coming to blogosphere this October. You’re going to crap your pants when you see it. (In a good way, though).

  1. On July 18, 2010 at 2:06pm, Bill Lassiter said...

    Great Vid Steph and thanks for the forms.
    I guess Lucky was trying to tell you something eh? LOL
    Hmmm, can’t say I’ve ever considered crapping my pants in a good way but hey, I can’t wait! :)
    .-= Bill Lassiter´s last blog ..Are you Marketing Consistently =-.

  2. On July 18, 2010 at 2:14pm, Stephani said...

    Hey Bill!

    It will definitely be a good kind of pants crapping- I swear!

    Thanks for stopping by (and thanks for having my back yesterday). ;)

  3. On July 18, 2010 at 3:28pm, Megs said...

    Great video Steph!

    Once you sign the assignment agreement with your buyer, do you have to give that to the seller,too? Or is that just between you and the end buyer?

    Thanks!

    • On July 18, 2010 at 7:27pm, Stephani said...

      Hi Megs,

      No- you don’t need to give the assignment contract to the seller- just the end buyer and the title company. The only paperwork you need to sign with the seller is the purchase and sale agreement.

      Steph

      • On July 19, 2010 at 9:29pm, Megs said...

        OK thanks.

        Do I need to give a copy of the purchse and sale agreement to the end buyer?

        • On July 20, 2010 at 6:48am, Stephani said...

          Yes, you’ll want to give a copy of it to your end buyer.

  4. On July 18, 2010 at 6:00pm, Shizawn said...

    Hey Steffers,

    Whatcha got cookin over there? You can tell me. I can keep a secret!

    • On July 18, 2010 at 7:28pm, Stephani said...

      Sorry Shawner, you gotta wait til October, buddy. ;)

  5. On July 18, 2010 at 8:33pm, Allen said...

    Sorry about your YouTube problems, Steph. I might be just going crazy but I thought I read somewhere recently that they lifted the 10 minute limit.

    I guess not, though if you weren’t able to get yours uploaded.

    • On July 19, 2010 at 6:43am, Stephani said...

      Hi Allen,

      No- you aren’t going crazy- I read it somewhere, too ,which is why I made the initial video for 13 minutes thinking it would be fine to upload. I guess I should have verified first. Oh well…

      Have a great week!

      Steph

  6. On July 19, 2010 at 2:42am, Wholesaler said...

    Great video, definitely some great points raised. Looking forward to October!

  7. On July 19, 2010 at 4:36am, AnotherSteph said...

    Great video, Steph.

    UGH, I hate surprises…give us a hint, October is a LONG way away….please?! :-)

    Steph
    .-= AnotherSteph´s last blog ..First Direct Mail Campaign =-.

    • On July 19, 2010 at 6:44am, Stephani said...

      Hehe, sorry Steph!

      October will be here before you know it….

      :)

  8. On July 19, 2010 at 8:23am, Shirley (Wells) Farrington said...

    It is always so refreshing to see your videos. I have been in this ‘technology’ for days with filling out Bank of Americas Equator. Real Estate Brokering use to be fun. But I can see that beging an investor doing Short Sales isn’t any fun either. That is why this Wholesaling sounds so good to me and you are an inspiration. Keep on bing you! Thank you, Shirley

    • On July 19, 2010 at 3:07pm, Stephani said...

      Hi Shirley,

      I though Equator was supposed to make the short sale process a lot more streamlined? No?

  9. On July 19, 2010 at 9:39am, Chris said...

    Steph,
    I am a new-b to these contracts. I have a homeowner who only has $18k left on the mortgage for her duplex and wants a couple thousand to pocket. She had been marketing the property for $40k but now just wants to get rid of it for $20k. She called my bandit sign for Cash for Houses and explained all of this to me. I know that I can use these contracts that you just gave us but how do I go about explaining what the contract is to the homeowner to make her more comfortable with it? What do I tell her? If I find a cash buyer for $40k by marketing it myself, will she end up seeing how much I sold it for? Will he end cash buyer see that I bought it for $20k?

    Thanks for all of your help!!!

    • On July 19, 2010 at 12:02pm, Stephani said...

      Hi Chris,

      The only contract you would use with the homeowner would be the purchase and sale contract. It’s just a standard contract that says you are buying the property from the seller for whatever price you agreed upon. This is something that is used all the time when people are buying and selling houses, so there shouldn’t really be any explanation needed when you have them sign.

      The assignment contract is used between you and the end buyer once you find one. This has nothing to do with the seller- it’s just between you and the end buyer. If you are using the assignment of contract agreement with your end buyer, then yes, they will see how much you are making because it is written right there on the contract. The seller will not see how much you are making until closing, as it will appear on the HUD (settlement statement) as an assignment fee.

      If you are worried about either the seller or the buyer having a problem with how much you are making, you can always do a double closing instead, where you would actually close on the property yourself (if you don’t have your own cash, you can use transactional funding, which is explained here: http://www.flipthiswholesaler.net/transactional-funding/).

      Does that make sense?

  10. On July 19, 2010 at 1:18pm, B.K Brooklyn said...

    Hi steph

    my question ? I have a lot of v.a clients calling me from recommendation .
    i can get the loan for the , but they also want me to find the house as well.

    my problem is as a wholesaler – I DON’T KNOW HOW TO DO IT AS A WHOLESALE deal.
    could you help with this.

    soul.bryan@yahoo.com
    cell; 646 919 7674
    0ffice; 347 713 5479

    • On July 19, 2010 at 2:43pm, Stephani said...

      I’m not sure if I understand the question.

      Are you a mortgage broker? And you want to wholesale to people getting VA loans?

      If that’s the case, I’m actually pretty sure that there are no title seasoning requirements with VA loans, so I think you can wholesale properties to people getting VA loans via a double close. I’m not 100% positive about that, though. I just sent an email to one of my wholesaler friends who told me he has done it before, so I’ll get back to you w an answer as soon as I hear back from him.

  11. On July 20, 2010 at 10:13am, Julie Broad said...

    Re: I have something very exciting coming to blogosphere this October. You’re going to crap your pants when you see it. (In a good way, though).

    Just wondering … how is there ever a good way to crap your pants?!!!
    .-= Julie Broad´s last blog ..No Vacancy! And Tips to Increase the Rent You Charge =-.

    • On July 20, 2010 at 10:26am, Shae said...

      LOL! I won’t lie, Julie….the same exact thought crossed my mind!
      .-= Shae´s last blog ..Doing the things you despise =-.

    • On July 20, 2010 at 10:39am, Stephani said...

      There’s definitely such a thing as a good pants crapping!

      Like, say, you won 100 mil in the lottery, or maybe if David Beckham showed up on your doorstep naked. That would be a good pants crapping, you know?

      :)

      • On July 20, 2010 at 10:46am, Julie Broad said...

        Would that REALLY be a good thing?!! Seriously … if David Beckham shows up on your doorstep naked and you crap your pants do think that’s going to go well?!! Do you think he’s going to stay there for long?!! I don’t think so …

        As for the lottery … well … can’t argue with you there …

        But basically what you’re saying is there is a 1 in 100,000,000 chance that something is going to happen that actually makes it good to poop your pants??? Now that I can agree with!!! HAHA!!!
        .-= Julie Broad´s last blog ..No Vacancy! And Tips to Increase the Rent You Charge =-.

        • On July 20, 2010 at 10:48am, Stephani said...

          OK, I would wait until David left, and THEN I would crap my pants. :)

          Teehee.

  12. On July 21, 2010 at 8:07pm, Carey_PA said...

    Girlllll you crack me up! I sooo can’t wait to crap my pants in October! That oughta be fun!!!

    OMG I’m still friggin laughin about that Steph. You’re a riot.

    Now on to your video…I definitely have to watch it…to make sure I’m using an option agreement right for my wholesaling lmao I’ve used it once and just offered to use it again this morning………so I”ll see what you got to say bout it!
    .-= Carey_PA´s last blog ..Possible wholesale deal Atm meeting =-.

  13. On July 31, 2010 at 8:17am, Greg said...

    Hey Steph, I just had a question on REO Agents. Do you still use your own Agent or do you contact the listing REO directly? Thank you!

    • On July 31, 2010 at 8:55am, Stephani said...

      Hey Greg,

      I make my offers directly to the listing agents.

      :)

  14. On August 02, 2010 at 12:15pm, cheryl said...

    Hey Steph,
    I was just wondering, since my dad has way better credit then me, do you think I could use his credit line to put in offers for REO’s? If so, what info would I need from him to show POF? Thanks and have a great week!!!

    • On August 07, 2010 at 9:04am, Stephani said...

      Hey Cheryl,

      Yes, you can use your Dad’s credit line to submit with your offers- just get a statement that says the amount that is available, and that should work.

      I did the same thing with my Dad’s LOC when I was getting started, and it worked out just fine.

      Good luck with it!

      Steph

  15. On August 06, 2010 at 8:52pm, Yvonne Cooper said...

    Hi Steph,
    I am a RE Broker in NY and I have to say I really enjoy you youtube videos and your blog (I just read) I am a newbie in the learning process, trying to get all the info I can off the web. You stood out the most! I think it’s your personality that really attracted me to your information. Honestly, I can’t even remember how this wholsaling idea came into my head. All I know is that I am on the road now. I am very excited and can’t wait to do my first deal. I just want to make sure I have all my ducks in a row before I jump in. Don’t know why they have to be in a row this time, they never were before?… Anyway. I totally envy you and I have to say you are my mentor ( in my mind anyway) On Monday I will find my title company and start my new venture. I called a guy off craigslist today (Said he buys houses) so I have my first investor and another in mind. Looks like pieces are starting to fall into place. Thanks for your you tube videos and God Bless you for sharing you knowledge. I can’t wait to be in the same position to help other people!!!!

  16. On July 08, 2011 at 9:57am, Al Elliott said...

    i have a question the assignment says

    Assignee has given a non-refundable deposit of $_____________ to be held in escrow at ______________________________________.

    does the assignee non-refundable deposit is that included or excluded from the wholesale fee

    • On July 09, 2011 at 6:19am, Stephani said...

      It’s deducted from your fee at closing. So, if the assignment fee is 5k
      and they give you a 1k deposit, you’ll get 4k at closing, plus the deposit which equals 5k.
      If they don’t show up to closing and bail on the deal, you get to keep their deposit.

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