Hi, I'm evany Caudill with Rei investment society and we are in course number four, how to assign contracts properly and make money without money. So obviously that is an extremely awesome thing to be able to do. Well, here's the thing. If you're new to real estate investing, this is a term called contract assignment. If you have not come across this term, then you are unsure of how assignments word. I'm actually going to teach you in detail as well as what to watch out for and how to do contract assignments.

If necessary, I will highly suggest that you replay this video over and over again. Also, don't be afraid to ask questions in the comment section. Right now we are the prime selling season in most markets. During this time. Investors are normally busy trying to live down as many properties as possible. What I can tell you is in the Chicago the Phoenix market, Texas flow In Las Vegas and Atlanta mark is we have seen an influx of buyer investors looking for deals.

I've had so many different conversations with group of investors, they're looking to get their hands on almost anything that has equity, anything that could actually generate a profit. So it was seeing that we just haven't really learned from the previous market crash. And that reason being is because there's a different type of market right now for real estate investors. And it's called wholesale, especially now since the Asset Management Division is much bigger than before. And people from 2008 when the market crashed, the ones that still was able to maintain the properties, they refused the sale and a lot of those properties are actually now distressed properties. The reality is, if you are an wholesaler and order investor, you should be able to close as many deals as possible.

If you've sat through so many different you know real estate marketing pages where it's The majority of them say, you know, introduce you to contract assignments, let you know, okay, well we can you can make $5,000 or 6090 days, you know what the reality is you can actually make about $10,000 per deal and calls within 30 days but here's the catch. I will highly suggest that you do all courses your guide to learning how to wholesale real estate properties in 30 days. reason you want to do this is because you want to be as consistent as possible. It's all about marketing, networking, staying consistent while being persistent. Building your target audience, networking with all the right people in our yeah investment society, who would definitely make sure that we put you on a road to success with other investors, other wholesalers and just overall hard money lenders, and even just introduce you to title companies who can assist you with how to do double closings or how to assignments along what we teach you here.

So let's get ready to understand contract assignments. But first, before we get ready to understand contract assignments, you have to understand the seasoning issue of properties that was actually sold. Contract assignments is all about knowing the actual rules of flipping. So even though you're actually not flipping a property, you just assign the property. A lot of these properties do have seasoning issues, depending upon how the property was purchased when the property was purchased. If you are trying to do an assignment, if it's a property, that's an FHA property, because maybe you got it from the MLS, and the realtor is working with a homeowner who property is a HUD property.

So this is really important. Or maybe they're working with a bait, you know asset management company. They're working with a bank, the property is a HUD property FHA property. Well, it's important to know with those properties that HUD FHA don't really allow flipping, or they don't allow assignment, so that's really important. The anti flippy route protests against predatory Lindy, the anti flippy row, which is the FR 4650. Change the real estate wholesaling business dramatically.

If you're new to real estate, wholesale, or investing and someone has told you that property flipping is illegal is probably due to the confusion about this HUD rule. The anti flippy rule of fr 4615 was published by HUD, Department of Housing and Urban Development on May 1 2003. To address property, flipping or mortgages issued by the federal housing industry, stration which is FHA, the distinction of mortgages insured by the Federal Housing Administration is particularly important for you if you intend to go into real estate wholesaling, or active real estate rehabbing and intend or reselling the property, which is considered flipping. Now the final rule for the FR 4615 prohibits of property flipping enhanced single family mortgage insurance programs. This makes the properties ineligible for FHA mortgage insurance and allows FHA to better manage his insurance with by requiring additional support for property's value when a significant increase between back to back sales has occurred.

Under the rule, only the owner of record may sell to an individual who will obtain an F PJ mortgage for insurance. So obviously they're basically saying that a person who has a property FHA, or it doesn't matter whether it's FHA has the property, or the current home or it has a property who originally had FHA finance, who has an FHA loan on the property. They are the only ones that can really sell his property to another FHA person, meaning as an investor, you cannot try to sell this property, because this property can only be sold from one FHA person to another FHA person. And generally as an investor, you're not getting a property that's FHA, there's going to be none owner occupied as an investment, because FHA is really for strictly second homes and home owners directly. So one has to actually occupy the property, not as an investment so FHA don't like true resales of property because they don't want to see that you are capitalize it and benefiting off of their low interest rate, and therefore the ability to be able to get the property, but yet you're walking away with $100,000 because that's not how they make their money.

Resales occur in 90 days or less following acquisition will not be eligible for a mortgage to be insured by the FHA. The FHA has found that the worst case of predatory lending work on flips that occur within a very brief time span often within days, resales occurring between 91 days and 180 days will be eligible that the lender obtains an additional appraisal from an independent appraiser based upon a resale percentage threshold by FHA. So basically, here, even though it says reoccurring between 91 180 days, the rule of thumb is 60 day I mean, the rule of thumb is six months, the FHA don't care what happens With a property as long as it is, so it makes it to the six month mark you can find most marks is reasonable. And here's a better way to say this, you as a wholesaler, or flipper, you turn around and buy the property in January, but then you turn around and try to sell it to Steve in March, Steve is approved via FHA.

Because Steve is approved via FHA, the chain of title shows that you mr wholesaler or Mrs wholesaler has only had the property for three months. With that being said FHA is gonna frown on it and declined the property not him but declined the property. So now Steve have to go get another property. The only way this could work is unless this particular seller is in you are the wholesaler if this particular seller is going to do a conventional The End buyer is going to be a conventional buyer. So this is only if we're talking about the flippy aspect of it. Now, if we're talking about an assignment problem with assignments is FHA has the properties of foreclosure and is, you know bought at an auction or through FHA directly to Napa as a management company or a bank.

They don't like assignment. So the moment they see you says, john doe and or assign ease, they notice assignments, and they generally will kill the deal. reselling occurring between 90 days and one years will be subject to requirement that the lender obtain additional documentation to support the value to address circumstances or locations where HUD identifies property flipping as a problem. So again, this is just kind of really repeating itself but it just want to make sure that you know, if we, they want to make sure that this is not a flip and if it is a flip the additional documentation You know, you're not Universal property, Mr. wholesale or ambassador for $50,000 and they in turn around and sell for 100,000 and you have nothing to show for. So in addition to the appraisal, they generally may ask for additional items such as the scope of work that was done the receipts that the contractors has given, they actually want to see that you actually spent all of this money to justify $100,000 jump from the property from the original purchase price, even though you legitimately might have done it to me You have the right to make the dish 25,000 or whatever HUDs gonna say no, not under our watch.

So, if we see that this area is known for flippy we will ask for additional items such as received such as contracts or scopes of work from contractors, things of that nature. So it is important if you're going to live in the air that appears to be FHA area, make sure that you do try to get a licensed general contractor. Because, you know, unfortunately, you may need this person to go in and write out these receipts and contracts if you already don't have them. Now, what is FHA? Well, the Federal Housing Administration, generally known as FHA, provides mortgage insurance on loans made by FHA approved lenders throughout the United States and its territories. FHA insures mortgages on single families and multi homes, including manufactured homes and hospitals.

It is the largest insurance of mortgages in the world insuring over 34 million properties. This is exception in 1934. So it's really important to understand FHA ami, even when the properties are being rehabbed, you need to know you know, what is up FHA standards because you got the knowledge property and you know, you miss miss assignment, you know, you turn turn around and assign the property over to an investor. And they think you're like, Oh, this is gonna be a really easy flip. They find out they can't really flip the property because they didn't understand what FHA rehab type guidelines are, such as something as making sure that there's a rail up and down the stairwell. You know, some properties are being rehabbed and they don't have that.

So this is important because not knowing this as an investor as a wholesaler, when these contractors are rehabbing these properties. This can kill a deal but now only you can kill one deal but as a wholesaler, this can kill your relationship with the client. And remember, all you need is a few good clients if you could clients will have you paid for the next Few years is all you need. They need to know that they can trust you, they need to know that you understand, not just have how to market and connect them with the seller. But do you really understand what's going on out there. So that's the most important part too, about being a wholesaler and doing an assignment.

Just really understanding the market, understanding, you know, FHA, the not even really their lending guidelines, but what areas are more prone to be FHA approved areas. And when I say FHA approved areas, I mean, you have some areas whereas the bulk of the buyers that's going to buy the flip from your end buyer from your investor, those actual families, you know, unfortunately don't have the 700 credit score. They have the 580 credit score to 620 credit score even a 525 credit score. Those individuals generally go FHA or VA. So which means that property that you might have assigned over to your investor. If your investor is doing these over the top high end homes, and they're making them conventional ready versus FHA ready, they may not ever be able to sell at home because they can't find a buyer to qualify.

And if they're keeping stuck with all of these homes that they cannot find a buyer qualify because it wasn't rehabbed to FHA standards. You mister missus wholesaler who's doing an assignment will begin to lose clients. Sale By Owner of record only under the anti flipping rule only the owner of mortgage may sell a home to an individual who will obtain FHA mortgage insurance for a loan. For quick term real estate investor. This means that you cannot wholesale a property to an FHA buyer, which you Have not purchased and completely recorded at the courthouse. Creative acquisition techniques such as a real estate auction power of attorney or substitute financing don't work under this restriction.

At the end of the day. Like for light, it has to be the same FHA buyer, FHA seller. As an investor, you are not FHA. As a wholesaler, you're not FHA, because you're assigning a property which has no record of it. FHA is going to look at a chain of title. If you are buying the property directly from FHA.

Once again, you're not going to qualify for because you are an investor. And they generally will make you try to sign some FHA document papers, and they will verify it by your name to see where you're from. So if you are an investor, who or wholesaler who says You're going to buy the property but you live out the country. That's a red flag. Because if you're buying that property in Tennessee, you need to be basically living in Tennessee. If it's a second home, then they assume that you probably should be living somewhere in another state but not out the country, the moment they see that this property is being assigned.

By looking at the contract, the deal is pretty much dead. If FHA see that the deal is being assigned at the closing table, the deal is dead. So remember, like for like. So with FHA, as I indicated before the Federal Housing Administration, no sales contract assignments, meaning john Stevens and or assignees or resales can actually be done period. So which means you can't even do a double Closing sale contracts assignments are exclusively borrowed for FHA buyers. Meaning that if you sign a contract on a property and try to assign a contract to an end buyer, that Empire would not use FHA issued financing, or so called FHA loans to purchase your contract.

That basically mean again, this person needs to be a conventional buyer. This person needs to be a heart money buyer. This person needs to be a private lender, buyer funder or cash buyer. They cannot, under any circumstances, use FHA to purchase your property. If you are flipping the property, if it's under six months, if you are trying to buy a property once again, that is being sold directly through FHA or has an FHA loan on it. You cannot do an assignment so it's important That you do your research and you ask your seller, you know, who is your loan with Is it an FHA was a conventional loan that's huge to know this.

Now there are restrictions when it comes to the resells, which they call this seasoning, which is again, that's the FR 4615. also defined as how soon after a house is flipped, it would be eligible to be bought with an FHA insured loan. Before the anti flipping route, you could buy a house at $100,000 and resell it within hours or days $450,000 as long as the inspection and appraisal supported this value. Now it has changed like I said, basically, you know, five to six months after that, you can pretty much do what you want to you could sell it to you want to but if it's within a six month time frame Jay will put you in your investor through a lot of hoops and hurdles to prove that you bought that house for 100,000. You resell it for 150,000. We want to know why is it really value that and even though their praises said is valued at 150, we want to see how much money you legitimately spent on this property.

So at the end of the day, FHA doesn't want the investors to make any money and they definitely don't want to be they don't want wholesalers to be a part of this or to even do any type of assignment. So just understand the FHA rules how long the property was owned and sold. Understand the chain of title. Most importantly, understand when you're looking for a seller, you want to see what type of mortgage they have. Do they have an FHA loan, do they have a conventional loan, if they have an FHA loan, like you know, you can still do something with it. But you are going to risk going through a lot of hoops and hurdles through it and you could potentially lose out on a good client.

So the best bet is that get someone who has some type of conventional or private loan on their property. Now just to really hit hard on what is season what is property sees me season it's not your season itself but is actually referred to real estate investors also involves time for rather than spices it refers to ownership. So seasoning refers to the amount of time that an owner has owned a property for lenders are the ones that may have seasoning requirements. A seasoning requirement would be a period of time required for a home to be owned by one owner, before it can be resold to a buyer. This requirement has nothing to do with the government, the laws, the taxes or anything else. Some lenders have to turn that they is high risk in a transaction if a home has been owned for a very short period of time by a new owner, again, seasoning requirements are going to vary from lender to lender.

So you want to know, your end buyer, you can actually say like when you're doing your marketing look for cash buyers only. So you're gonna see terms where they're saying looking for cash buyers only, or buyers who have private financing. And sometimes occasionally, you may see you know, buyers who are approved for two or three K's because they are already indicating to you that this property is FHA. This is a FHA property, and it does need a little rehab but even though it's a buyers for two to three k loan, that buyer generally is going to be someone who's so called on a quote unquote, occupy the house. Now that's not always true, but they generally are indicating that they're going to occupy the house. The major concern is Is the title to the property.

In some states recording of the closing document can take some time before they are actually on record. Some states have gone to any electronic recording system, but many states have to record by hand, and this dramatically increases the amount of time before the home is on a record. This waiting period does not mean the new buyer does not own the home. But the concern is if anything else comes on the title during the waiting period, does the new owner really own the property even though the county records do not show the ownership due to the delay in recording? This is another reason that a lender may have seasoning requirements. One of the main reason for seasoning is because lenders require seasons because they want to avoid making loans on flip properties, which are generally riskier for the lender.

Seasoning however, does not guarantee protection for bad loans. If you have a property that requires seasoning, you may want to consider renting out the property for a year prior to selling the property. So this is why you have some, some investors doing buying homes, because they're kind of stuck with a property whereas they can't even sell it because the area that they bought their property that they are rehabbing, or rehab is an area of predominantly for FHA, homeowners and FHA buyers and people that only qualify via FHA. Whereas if they had to qualify through conventional financing, they can only get 80% loan to value but with FHA, you know, these buyers can get 97% loan to value. And, you know, unfortunately, people want to be able to get the higher loan to value and pay little at closing and still have a good interest rate. But by doing this, it'll allow you as an investor to really meet the seasoning property requirements for prospective buyers that require mortgage financing, or refinance the loans lenders requires you to seize the existing mortgage to prevent you from taking out a new mortgage loan and immediately refinancing the loan.

So, we're back to square one. Sometimes, as you know, an investor, investors like to try to hurry up and refinance the property. You know, if they purchase this property via FHA trying to, quote unquote, these, you know, being slick per se and say, This is a second home nanny, they step in because they can't even refinance the property for that reason. So they want to make sure that these properties are legitimately originally owned by the person who took out the mortgage. And if you are not the one who took out the mortgage, but you're the lender who's trying, I'm sorry, the investor who's trying to sell the property to someone as FHA, they're going to tell you Nope, you got to hold on. went to that property and hold on to it for another six months, because based off when I changed the title, you just bought this property for 50,000.

Now you want to sell it to one of our people for 150,000. We're not gonna let you do that to them, because as far as we're concerned, we can't consider this as predatory lending. So what is an assignment? That's the whole question what actually is an assignment? And why do I even care about FHA and everybody else, I just want to assign a property. Well, assignment is a part of a common law that deals with transferring rice for one individual or party to another.

Assignment agreement usually shows up in real estate dealings, but can also exist in other contexts as well. However, an assignment is only the contract or transfers of benefits that have accrued or will occur. With an assignment the obligations do not transfer alongside the bill. If the obligations will remain with assign, or as with a security agreement, a verbal assignment, while legally bind does not provide either party with legal protection of written assignment agreement. So again, what are those obligations? those obligations is the mortgage that's potentially on there.

If the mortgage insurance FHA mortgage is potentially on there, so that does not transfer that steal, that obligation still stays the same. So if you have a person that has an FHA home, and they try to assign it to this other party or give them the rights to assign it, then here it is, that obligation stays with that property. And as FHA said, we don't want to deal with you, which means you cannot assign this property. So if you do the best way for you to assign the object property is four, you missed a wholesaler to go ahead either a door double closing, which would be faster. But if you do the double closing, you have to make sure you have the funds, or B if you do the assignment, it's going to have to be a separate assignment contract. And that contract is going to be made between you and the actual end buyer but on your contract with the seller, it cannot show and or assignees because the sellers mortgage company is going to turn around and try to kick it back.

So keep that in mind. The assignment of the contract is just is really simple. There's an assignment of the contract contract must be assignable. Individual seller only know he owes meaning no foreclose properties. Because foreclosed properties, our most foreclosed properties are, unfortunately generally FHA. If it's a conventional property, sometimes they don't worry too much about assignment.

However, if you do an assignment, I'm going to emphasize, do not put an or assignees or signers on the contract, leave it as it is and worry about it in the middle of a closing transaction. But do not do any use the word assignment on that particular contract. Like I said, it must be individual seller only. You don't end up in the chain of title. So when you're doing the assignment, your name is not going to show up on anywhere. It may just show up on strictly the settlement statement.

Because as your marketing fee, only one closing one set of closing calls with assignment there's going to be that one closing because again, you are the leader Are we not doing a double closing, whereas one closing date, but two closing times and two closes, because it's a double, we're only doing a single closing. So you are the wholesaler, you're the middleman, you're the marketing person. And you are totally separate from that. And there are no additional closing calls that is pertaining to you. The only closing costs is pertaining to you is from the buyer. That buyer is going to be paying you directly because that's the assignment fee that they're paying you to have connected you with that home owner that seller for that good deal.

And you really don't need to attend the closing. Would I suggest you attend the closing? Absolutely. And that's just strictly just to get your check. And if you want to kind of be friend, the investor because this is now your new client. You want to you know, kind of run shoulders and see how many other investors that they know.

But the truth of the matter is, you don't have a reason to attain the closing because again, I'm not gonna say you're nobody but you're not the investor, you're not the investor. You're not on title. You're not the lender. You're not a real estate broker. You're just a third party liaison. As far as someone's concerned, you're just a step.

You're just a billboard, because this is how you got your clients, you know, word of mouth, networking, billboard marketing, so there's no need for you to attend the closing. But again, I would suggest that you do attend the closing, for the purpose of continuing to build that relationship with an end buyer. Now in order to even make it to the closing table, you need to make sure that you're always staying in contact with motivated sellers. You need to go out and get your motivated sellers. The motivated sellers can come from any walk of life, neighborhood level of education and salary level. There are numerous reasons why the property owners can become motivated or should be highly motivated sale, such as a divorce, a job relocation, physically distressed properties, real estate options, builders, investors, foreclosures and bankruptcies, and then a motivated referral source.

So they're motivated referral source. It can be you know, when you went to the closing that seller said, Hey, you know what, I have other properties that I can help you with, because you'll be surprised how many of these sellers have multiple properties, or they can refer you to their neighbor. It could be that investor who was really you know, excited and really love what you did for them and say, You know what, I got other investors to refer you to, so, and those investors don't think like okay, those investors only looking to buy I need sellers to a lot of investors has properties. sale in they're trying to liquidate properties to buy more properties that's going to make them more money. That's what they use their leveraging powers for. So and again, you want to make sure that you are always looking for your motivated sellers because you need to get to the closing table on a consistent basis to constantly do assignments is all about persistence and persistence.

So your house fast, motivated sellers generally are always looking out for the signs they're looking for the keywords facing foreclosure behind on payments, unwanted inheritances. That's not that that's that estate property. Use this gave me this raggedy piece of property. I don't want this. But unfortunately because you gave it to me, I'm literally stuck with it. Otherwise I'm going to be, you know penalize for the taxes on is, so they don't want this property problem with 10 is that motivated seller can actually be that investor that you met because that seller is like You know what, I haven't been a landlord for so long.

I'm I'm ready to sell as I can't deal with another tenant or I'm getting older. Then on the flip side, you have the end buyer who you met at the closing table, you actually finally get a chance to meet or rub shoulders with that Empire is tired of tennis to that Empire is tired of buying and holding. All they want to do is flip properties in their mind. You know what, I can liquidate all these big buildings with these, you know, raggedy non paying tenants. And I can turn around and make anywhere from 50,000 to $200,000 per property. I just want to do that get in and get out.

I'm tired of having to do all of these house repairs all of this stuff. I think Just get a contractor Get in, get out and I'm on to the next property. So your motivated sellers are actually going to be sitting at the closing table. Both the buyer and the seller are motivated sellers, they are going to be your great referral source. So always do good business and understand what it is that these sellers are looking for. How can you help them succeed?

Because at the end of the day, they're helping you to become a great wholesaler and assign a lot of contracts. Understanding your selling nice is extremely important because it's hard to make progress in real estate negotiations and to assign contracts and become a great wholesaler. If you don't understand your sellers needs. They may need to actually satisfy certain debt obligations. The seller may actually need to get other people aboard for the purpose of the sale. They may just Want to retire to simply live some other place?

In any case, the banks are negotiated, they may have to satisfy their bosses and shareholders or regulators. If you're dealing with someone who's an asset manager, working with the seller and understanding their closing timeline and date is extremely important if you're going to become successful as a wholesaler and be able to liquidate as many properties as possible by assigning a lot of these properties. Now, what does the assignment agreement actually cover the assignment can apply to a range of property rights. For example, this assignment agreement to the right, it could cover the transfer of title. In addition, it will cover everything attached to the property, which would include the water rights or something as simple as the pear tree attached to the land in which the property is affixed to. So this is why as an as sign are an assignee, you mr or Mrs wholesaler would not appear on title because the assignment agreement when you're transferring this property over, you're transferring the contract.

But you're not actually you have no true ownership in a property. You do have equitable interest if there's not an FHA HUD property, because your name is on the contract with the intent on purchasing. So you want to use that equitable interest or Hurry up and find you an end buyer which will be your investor assigning the contract to make money. Assign a contract is very useful to for wholesalers that would like to assign their rights to a property for small profit, which can also be a large profit and assignment of contract form is used to transfer a beneficial interest in the property to the buyer assignee from the existing buyer to the Assign or the assignee is the person to whom an agreement or contract is sold or transferred the Assign or is the person who assigns or transfer an agreement or another contract. So Mr Mrs wholesale a You are the Assign or and you're in buyer which is the investor is the assignee.

The assignment is a reminder is the method by which a right or contract is transferred to. So here's an example of how an assignment of contract works. So assume your name is john doe and you have signed a contract to purchase a property located at 123 Main Street in Hampton, New York. Your purchase price on your contract with the seller is $90,000. But you would like to make a quick $15,000 profit and sell the contract Right, or assign it to another buyer which your which is your end buyer the investor. So let's say that you are successful in locating a buyer for the property that is willing to purchase a property for $105,000, which is 15,000.

More than what your contract states, you then tell the buyer, you have a contract to purchase this property for 100 to 5000. And you will assign the rights to purchase this property for fee of $15,000 to him or her. This fee is called an assignment fee. So you probably say Who the heck is gonna pay $15,000 for this property more? Well, here's why. This a property because you have gotten a BPO broker price and opinion or your realtor who you've developed a relationship with, with you know, you maybe you've paid them to do a CMA comparative market analysis.

And they've told you Hey, real quickly, Mr. Mrs. wholesaler this property right now, as is in this state of current condition, it's worth $200,000. Now, that still $95,000 left of equity into it from the price that they're gonna pay which is 100 to $5,000. However, you brought in contractors, and based upon the market value and the work that needs to be done, the contractors tell you that if we put $50,000 worth of work into this property, this property can sell for $300,000. The reality is that in buyer, that investor is going to definitely go ahead and take that property, because now they see that they're looking at roughly about $150,000 worth of equity into a property that they would have never found because it wasn't listed on the MLS the Multiple Listing services so this is why it's important to find properties that are off market and for you mister missus wholesaler to become a bird dog, a watchdog go out and watch for these properties.

Go do marketing for the sellers make connections at the title companies make connections and real estate investment events because these are the properties that you're going to have the inside scoop on with these sellers and they are usually willing to do an assignment with you especially if you've developed a relationship to be a good wholesaler, or someone who's a good investor or a good individual to have connects with investors. Now, the buyer agrees to the assignment fee and you have a one page form called an assignment of beneficial interest form or assignment of contract which we've already seen. You use an attorney to draw up this form if you already don't have the form, but you can fill this form out yourself. It basically states that you are giving up all rights to the purchase of this property and assigning it to the new buyer in exchange for an assignment fee of $15,000.

And again, all your contracts you want to make sure that you put in there, you know, the closing date is within 30 to 45 days because this is something that you are going to discuss with the seller, what is their target time because you want to make sure you understand how you can make them happy and understand what their needs are and their motivations. What are the benefits of doing an actual assignment? Well, first off, you're actually essentially flipping a property without ever even closing on and never even own. It didn't have to come up to the closing table with any type of cash, didn't pay any type of closing calls. Did occur any liability, your expenses with the exception of maybe the cost of a stamp and the cost of your time, you are not really flipping the property, you are actually flipping the contract that gives you the right to purchase the property.

This is what wholesalers do. And it can be extremely lucrative, the only money that you will actually need to put down will be the deposit you give them to the seller of the contract. This is considered also as earnest money. This is a deposit held in escrow. And this money is kind of used to show good faith. The reality is a true wholesale would never put them no more than $100 in order to reduce their risk.

Sometimes you're going to put up $1,000 but it just really depends up on the price of the property. So the benefits of assigning a contract is a little risk but a lot of money involved So now the main thing is okay, well, it was low risk and a lot of money involved, can I get paid now? I need to get paid. I want to get paid at the closing just to sign a contract. So how is this gonna work? Well, this is how it works.

On the day of the closing, you will get paid just to bring the seller and the buyer to the closing table, they will show up to sign all the documents, and the end buyer will bring funds for the purchase of the property plus your assignment fee. Once everything has been signed, and the money has been collected for the purchase, the title company will cut you a check for the marketing fee, quote unquote. And so when I say that they're going to bring your money to the closing table, that money is already put on the HUD one settlement statement. So that is where your actual money is going to be shown up on but it's not going to be dispersed directly from the seller. The buyer but it's going to be given to you directly from the actual title company. So as you can see, doing assignments, being a wholesaler is a lucrative business to get into, it's all about networking is all about marketing is all about knowing how to get your sellers, understanding your sellers, capturing as many investors as possible because the truth of the matter is, the more investors that you have, the easier is going to be to get more sellers.

Sellers knows investors investors know sellers, and if they can have a person that's going to bring them together, they would prefer that because they don't have time to do all of this. Basically, you are now their assistant, you are now their gopher, but who cares about being the girlfriend, the Assistant? The coffee runner, who cares? Well, you know, you Make $10,000 on a deal minimum, you know, you can make $5,000 by just simply doing a small deal for 30 $40,000. I mean, that's just quick money with some people can't get that in two three months. So this is what you can be able to do as a wholesaler, but doing this as a wholesaler do an assignment.

You have to be prepared to take the next step. And the next step is going to be doing all of your market research, following your courses, all the courses going through the courses and setting up for your first deal to come within 30 days. I'm evany Caldwell with Rei investment society and I am excited you're getting closer and closer to becoming a great wholesaler and assigning contracts and I want to be your mentor and coach to get you prepared for your first deal to come. Congrats lations on your journey and good luck