Help with Assignment Contract

[Jonathan Makovsky]

Is there someone experienced with assignment contracts that might be able to help me out with some of the technicalities in the way you structure the contract. (I am not asking for legal help - I have an attorney for that - just your experience). 

If you're credible, I am happy to compensate you a reasonable amount for the time we speak/email. 

Please PM me. Thanks in advance.

[Pavel Sakurets]

Generally all real estate contracts are assignable (unless you are buying a property from the bank that doesn't allow assignments and you already have an executed purchase agreement with the bank that says that assignment is not allowed).

If you don't have an executed PA with the seller, at the bottom of the contract where it says ''other'' you write :"buyer has a right to close on the purchase under the entity of its choice''

Then after you found the end buyer your title Co or an attorney structure a contract b/n you and a new buyer where your attorney includes the legal language and other stipulations that basically will say '' that you are the seller of a certain contract and Mr Jones-buyer is a buyer of the contract, and you agree to sell the contract to Mr Jones for X -dollars''

On the HUD you will see the purchase price that you buy the property for and a separate line item for an assignment fee (your profit) that you get by assigning the contract to Mr Jones.

If you do have an executed PA without the language above, you will need to write an amendment with the seller that says'' Buyer has a right to close on the purchase under the entity of its choice''

Your new buyer will set up a new LLC or will close under existing LLC of his/her choice.

But be careful though, when sellers and end buyers see the HUD statement before the closing, some of them might flip out and don't come to closing because they get frustrated by knowing how much money you are making (not the end buyer, because they see the original contract that they are buying). Thus if there is a big spread of over 15k, I always do double closing and request 2 HUDs, one for me and the seller, and second one with me and end buyer, so the seller and end buyer could not know right away how much money I made.