Asking my ActiveRain friends for a little advice !!!

By
Real Estate Agent with Keller Williams Realty

help

I will be the first to tell you that I absolutely, not by any means know everything.  I have been in this industry for nearly 9 years and I still come across something new and learn something new almost every single day. 

 Well.. I have this new client and I'm not quite sure what to make of it just yet.  I'm somewhere between - "this could really be great and huge for my business," and, "this is a complete waste of my time."  He is an investor looking to buy, no surprise here, incredible deals.  Here's the kicker, though, he is using other investor's money and wants to sign the contract (I'll just say his name is John Doe) "Doe Enterprises and/or Assignees." 

Now, I've worked with investors plenty and I've also sold foreclosures and estates, better known as "incredible deals."  However, my buyers always have their own money.  I've talked to an agent in my office who only deals with foreclosures and he mentioned the bank will absolutely not allow "and/or assignees," but an independent homeowner might.

HELP!!!  Thoughts.. Advice.. !!???  Have you ever dealt with this?  Anything you can offer would very much be appreciated!  Thank you !!!

 

Posted by

Britney Elizondo

Buyer Specialist, REALTOR® | Vicki White Homes | a team within Keller Williams Dallas City Center | www.vickiwhitehomes.com

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Rainmaker
274,342
Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095

RUN!  That's right out of Carlton Sheets/Russ Whitney/et al.   You CAN NOT, in almost all cases, assign a contract with a short sale or foreclosure.  Can you guess why?  Because the banks understand that all that is happening is another hand is getting put in the register at closing...

Most homeowners will not understand how that works but I, as a listing agent would NEVER take a contract like that, unless it was a very difficult, cash only property, and only then, if I had exhausted every legitmate investor I know in the area...and even then I probably wouldn't!

Mar 23, 2011 10:46 AM #1
Rainer
3,310
Brandon Glade
Accountability Mgmt & Real Estate - Peoria, AZ
Associate Broker

My experience with banks has been the same, they will not allow any assignees, I think that the best option would be to stick with traditional sales (good luck). Buying real estate with other investors money is common, it just takes a little more creativity to get the deal done. I would make sure that he can "prove" the legitimacy of his "investors", get a buyer broker agreement for sure! If not you could be wasting a lot of your time. Good Luck!

Mar 23, 2011 10:46 AM #2
Rainmaker
1,282,443
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

Britney, sounds like your investor has gone through the George Roddy Jr. investing classes.  The agent you spoke to in your office is correct. Banks won't like assigns.  FSBOs may not know what they're getting into.

Mar 23, 2011 10:48 AM #3
Rainmaker
1,181,440
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

I always inform investors that a purchase contract will require a personal financial statement form their bank. That stops fakes in their tracxks. If your client has access to other sources of money, this would be verified through his lines of credit.

Mar 23, 2011 11:11 AM #4
Ambassador
1,044,378
Steve Shatsky
Dallas, TX

Hi Britney... I have been down this road before... ask your broker, he offered me very good advice on a similar scenario involving short sales a few years ago that saved me from wasting a LOT of time and energy.

Mar 23, 2011 04:56 PM #5
Rainer
27,261
Britney Elizondo
Keller Williams Realty - Dallas, TX
Your Dallas Home Buying Specialist :: 940.453.5308

Thanks for all the advice, guys!!  I really appreciate it!  And Steve, you're right!!  Mike's the best!!!  He's been out of town but I do plan on speaking to him about this.

Happy Thursday all !!! =)

Mar 24, 2011 06:27 AM #6
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Rainer
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Britney Elizondo

Your Dallas Home Buying Specialist :: 940.453.5308
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