Real Estate Wholesaling Explained: How an Assignment of Contract Works

[@TheLaTonyaThompson]

Once again you have described this better than anyone on KZbin. You are the very best at what you do. I'm so greatful I came across you. I believe your name is Seth Williams. When I google your name and put in assingment of contract, I get Retipster and that's fine.

[@Retipster]

So glad to hear that! I'm glad the video helped!

[@zachramirez66]

Thank you man I really do appreciate this video you made I recently have been looking into doing this type of work and ive been doing my research and today I came up with the right question to ask in the search bar and your video came up. Thank you for the free help because without people like you in this world we wouldn't be able to acquire this info without paying thousands of dollars for some classes and some DVDs thank you once again

[@Retipster]

That's great to hear! I'm so glad it was helpful to you. Thanks for watching and commenting. :)

[@silentkiller-bf5802]

That scream tho 😂😂😂😂😂

[@Retipster]

hahaha, we had to make the video memorable somehow. :)

[@jamaicallesol6724]

omg! seemingly flawless explanation. hit subscribed!

[@Retipster]

Thanks! Glad it helped!

[@gardensageco2327]

I like the cartoon video makes it look more interesting and fun !

[@Retipster]

Glad to hear you liked it, Catherine! Thanks for watching!

[@prod.robdoe7372]

So you before you send the buyer the assignment contract you must also send him the original purchase and sales agreement that you had with the seller ?

[@Retipster]

You could, but it doesn't have to go in that order. Most people find a cash buyer (usually from their buyers list) and once they've expressed interest and are ready to close, they can see the Purchase Agreement and sign the Assignment Agreement at the same time (the Assignment Agreement allows the end buyer to jump into the position of the buyer and close on the purchase).

[@DVSOP]

Excellently explained

[@Retipster]

Thanks for watching!

[@BeauAmoureux]

🤔 I’ve been thinking about this for months, thinking I was a genius, but people have been doing it for decades! 🤣 Zero-dollar real estate investing. I think I’ll give it a shot! ✌🏿

[@VnfvitYGhozT]

How’d it go? Update.

[@pirate_hunterzoro408]

How’s it been has it worked out for you?

[@SwitchTheNiche]

What would happen the assignment fee if the Seller does not perform the terms of the agreement?

[@Retipster]

When you close with a title company, the assignment fee wouldn't be dispersed until everyone has performed their terms of the agreement, so this situation theoretically wouldn't ever happen. This is a big part of why people use title companies and closing attorneys to close deals - because they make sure everyone does their job, and no money goes anywhere until all is completed.

[@YoitzMattV]

Does the seller get paid right after signing the assignment agreement ? Or after you sold the house to the new buyer?

[@Retipster]

Great question. Most wholesalers I know will get paid at the closing table when the property actually changes hands (simultaneous with the seller receiving their cash from the buyer). The title company or closing agent should be able to facilitate this transfer of funds for each party in the transaction.

[@47retta]

Who pays the earnest money deposit? And how much should it be?

[@adamc7537]

In the purchase agreement put your name as buyer but also put Or assigns.

[@elanatapp3070]

Do you have a link or something

[@Retipster]

Check out this blog post for a lot more step-by-step information: retipster.com/wholesaling/

[@BrickFilmerPowerlolifk]

Nice video. If a closing agent handles both the Purchase and Assignment Agreements, then am I free from legal action? Thanks

[@erinmitten4227]

This depends upon the legal statutes in your state. Spend $275 with a real estate attorney in your area to answer all questions.

[@shanefrank3281]

What happens if you are the wholesaler and you enter into a purchase agreement with the property owner, but you never find anyone with interest for you to assign it to? Wouldn't you be out some earnest money or some kind of fee because you are breaking your contract to purchase with the property owner?

[@Retipster]

Yep, that's pretty much it. Some people don't put down an earnest deposit and/or some will only put a very small amount down, so it's not a big pain if they can't make the deal work.

[@amely6932]

Do you have samples of a contract

[@brandonhunt6870]

Amely *** I do

[@elanatapp3070]

This is really interesting how can I learn to do the step-by-step

[@marissathomas9327]

best video i have ever seen.. lol thank you because i was confussedddd lol '

[@Retipster]

Thanks for watching, Marissa! I know... there's *a lot* of confusing advice and explanations out there. We tried our best to nail it clear and simple in this video.

[@williampittman7936]

How to get the clauses in the contracts?

[@Retipster]

You can see an example of what I use in my contract in this blog post: retipster.com/wholesaling-made-easy (it's about halfway down the page). Good luck!

[@life_withkj2064]

So when finding the cash buyer, do you have to have the property listed for $55k or you have to have it listed for $50k and just have the assignment of contract stating that you also owe $5k????

[@Retipster]

You would have the property listed at the higher price with your profit margin built into the deal.

[@dreams7567]

And that’s adding it onto the end buyers assignment contract or you should let the home seller know on a purchase agreement that you’ll be profiting ?

[@eduardovargas8243]

what step would a title or escrow officer be needed

[@Retipster]

When you've got an cash buyer who is ready to sign the assignment agreement and pay your assignment fee, that's when you'd schedule a closing date with the original seller, end buyer, and the title company.

[@eduardovargas8243]

REtipster what contract would the title company see ? And how much is the assignment fee

[@everardoanguiano7172]

The scream was just great lmfao

[@dreams7567]

Does this apply in Canada ?

[@Retipster]

I'm honestly not sure, sorry!

[@iansmith4924]

Do you put up your own money at 2:28 ? Like do you buy the assignment of contract with your own money $50k?

[@erinmitten4227]

Hi Ian, 'Wholesaling' is so attractive because you're not using ANY money to get the contract. You communicate to the seller that you are finding them a buyer at a price you agree upon considering the cost of needed repairs. The contract can have a term of 30-120 days before expiration, giving you as much time as possible to find a buyer for your customer.

[@Ishbikes]

Who draws up the contract? That’s the million dollar question for me. Any help?

[@nyssamojica2945]

Great video! I understand better now!

[@Retipster]

Great! Thanks for watching!

[@carlosgrandeur6468]

Is the assignment contract done through an escrow company ?

[@Retipster]

It can be, but just getting the assignment agreement executed doesn't require a title company to be involved for that single step.

[@Keychainjames]

Amazing

[@susu-mi7kx]

So.. say the person who owns the property to begin with. You tell them YOU want to buy it?? what's is the contract between you and them? and say you find no-one who wants the property , am I then responsible for buying that property? Hope I get a reply soon. Thanks

[@erinmitten4227]

Your contract with the seller will traditionally have a no penalty cancellation clause for both parties. So you aren't responsible to purchase the property.

[@susu-mi7kx]

@@erinmitten4227 So How long,.. say should I hold this contract for? 30 days 2 months etc..

[@lawrencenearnjr6671]

Do I need any type of License to whole sale ? Or can I just simply find a rundown house , run the title, put it under contract , find a cash buyer, assign my rights , and go through the escrow process , then pick up my check ? Can any regular person with the knowledge do it ? Please let me know. I need to Change my Life NOW!

[@erinmitten4227]

This depends upon the legal statutes in your state. Spend $275 with a real estate attorney in your area to answer all questions.

[@VanCityNinja]

But how do you convince the seller let me add an assignment clause? They all saying no lol

[@Retipster]

It's all about explaining the process and being transparent about what you intend to do and why it's still in their best interests. If you explain it well and they still don't think it's in their best interests, then they aren't the right kind of seller for you to be working with in the first place. It's not about tricking them into working with you. It's about helping them understand the pros and cons and if they're the right person, they'll know when it's the right option for them. You can see more about how I explain the process in this blog post: retipster.com/wholesaling/

[@shroutimusprime21]

nothing is shady about wholesaling. Its youfinding the deal and flipping it to the cash buyer....its simple. Just being transparent is the key. I tell the investors my finders fee in the price but making sure the profit makes sense.

[@Retipster]

That sounds like a good policy. Thanks for sharing, Alex!

[@Ether-pb5gb]

does the buyer HAVE TO be a cash buyer? Is the new buyer able to finance?

[@nicolerico8511]

Do you do 5% of original sellers price?

[@islo4]

who pays the title company?

[@erinmitten4227]

The purchaser of the property is always responsible for the title search. Beware though, I've seen tons of wholesale middlemen lose deals because the property has issues with title.

[@marissamorales3273]

@@erinmitten4227 what kinds of things can be wrong with the title ?

[@huongthu-yq2qt]

the sound is not good I am quite disappointed

[@goldensleeves]

Why wouldn’t the red headed buyer just buy it directly from the original seller instead of having to pay the dark headed guy an extra $5,000???

[@Retipster]

Because the red-headed buyer doesn't know how to find amazing off-market deals that he can purchase for pennies on the dollar, but the dark-haired guy (i.e. - wholesaler) does. He knows how to find off-market properties that are deeply discounted. This is one of the key value propositions that wholesalers bring to the table - access to deals (and free real estate equity) that most retail buyers would never be able to find on their own.

[@erinmitten4227]

It's also about the cost of time. The buyer in this video is most likely a full-time professional investor who makes most of their money flipping or purchasing to rent. They would rather have tons of wholesalers scouring the streets finding deals for a small finders fee versus spending countless hours looking for deals.

[@andrewbarahona8747]

Sorry but your incorrect wholesaling is completely legal in all 50 states as long as you say you selling your contract not the house

[@Retipster]

There's an army of attorneys and real estate associations in Ohio that would strongly disagree with you... but I'll let you take it up with them. :)

[@souljackmusic]

@@Retipster well like he said it's illegal in sum states

[@ServiEntrega24H.Gerona]

5 people didn’t like the cartoons 🤣🤣🤣🤣

[@Retipster]

Can't make them all happy I guess. :)

[@jaylessons635]

It was the scream lol

[@yolopollo5264]

「コンテンツを調整する必要があります」、

[@dysonwilliams7216]

Off topic that scream was scary asf