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in this video we're gonna talk about how to do an assignment of contract when you're wholesaling real estate all that and more coming right up everybody is Jamel Gibbs with the REI education Academy helping you close deals consistently in your real estate investing business and on this channel what we do are real estate investing how-to videos and tutorials as well as videos of me actually investing in real estate so if you're new here consider subscribing and at any point in this video if I mention any resources those resources will be linked in the description box below in case you want to get started with them right away so with that said let's go ahead and jump into today's video what we're gonna do is talk about how to do an assignment of contract in your wholesale business and I'm also going to show you how to get a copy of the assignment of contract that I use at the ending of this video so be sure to stick around to the very end now there's three key things that I want to talk about when it comes to assigning contracts and I want you to implement this stuff in order to be able to be effective in your real estate investing business now the first thing that you always want to keep in mind when it comes to assigning contracts is to put the purchase amount that you've actually put the contract the property under contract for on the assignment of agreement so whatever you negotiate it with the motivated seller you want to make sure that that amount is on the assignment of agreement in addition to that you want to be sure to have your assignment fee on that contract as well and make sure that behind your assignment fee you always put net and you always put non-refundable as well all right and the reason for that is because when you put net behind your assignment fee the attorney then knows that you're not paying any of the closing cost you're walking from the table with the amount that you have on that agreement the reason why you put non-refundable is in case the Bayeux tries to back out at the last minute they're still gonna owe you that money unless you cannot perform in addition to that you want to put the total amounts of both of the purchase amount as well as your assignment fee on that agreement so let's just say for example you purchase a property for 50 thousand dollars and you assign that contract for $10,000 wholesale fee you're then gonna take fifty thousand dollars for the purchase amount and then ten thousand dollars for the assignment amount you're gonna total it up and you're gonna add that to the contract which is gonna be sixty thousand dollars so you got fifty thousand ten thousand totaled up equals sixty thousand dollars which is the amount that the buyer your end buyer is actually gonna pay for the property all right now once you have that out of the way you want to make sure that your buyer always puts down and earnest money deposit whether it be through you or it be through the title company or the attorney depending on a state that you live in different states have different laws and different ways of closing deals all right so you have to find out what's working best in your area I know in vain' jr. you can use an attorney or a title company in North Carolina we use attorneys in New York City you use attorneys in Pennsylvania you use title companies all right so you just have to figure out what actually works best in your area now once you have that out of the way you want to make sure that you get an earnest money deposit from your end buyer now typically when it comes to the earnest money deposit I make that non-refundable as well all right and what I like to do when it comes to the earnest money deposit is I like to collect at least $1,000 or double the amount that I've actually put down on the contract here's what I mean by that so let's say I put $10 down on a contract with a motivated seller when I sell my contract to my buyer I want to collect at least $1,000 from that buyer to ensure that they have a significant amount of skin in the game and it won't back out of the deal now if I put down let's say $1,000 on a property but say it's an MLS property or the seller and I just negotiated a higher amount if I put down more money I'm looking to collect double for my buyer so if it's $1,000 in this case I'm gonna collect at least $2,000 for my buyer if I put down 5 grand I'm going to collect 10 grand long story short basically what we're doing is collecting at least $1,000 or double the amount that I've actually put down on the agreement whichever is greater so we have the purchase agreement we have the assignment amount that we're actually going to make on the contract we have the total and we have the earnest money deposit and all of that is non-refundable up to this point the last thing that I like to do is I like to add a closing date to the contract that is before my closing date if it's possible so I'm not going to twist the buyers on if they can't close it before my closing date but I like to give myself enough breathing room in order to be able to find another buyer if this particular buyer backs out of the deal or they can't perform so what I like to do is give myself at least a week years ago I used to give myself two days but I wanted to give myself more time these days it works a lot better for me in it it's more of a protection for me to be able to find another buyer on the deal so let's just say for example I sign a contract today and I have 30 days to close that contract I'm gonna give my buyer 21 days to close the contract and the reason for that is again if the buyer decides to back out at day 21 I still have a few more days to be able to find another buyer and get the deal done and if you find real buyers if you have real cash buyers on your buyers list a real cash buyer who's paying cash for a property as long as the title and everything is done they can close it the next day or two to three days later so that's never a problem I've done it a lot of times alright so just to recap basically what you want to do is make sure you have the purchase amount the assignment of agreement of amount the assignment fee on the contract as well and you want to make sure that all of that's non-refundable you want to make sure that you have the earnest money deposit collect that minimum of $1,000 or more based off of the amount that you've actually put down and then you also want to make sure that you have enough time on a closing date so that if the buyer backs out or they can't perform meaning they can't close the deal at the minute you still have some time to find another buyer so you want your buyer closing a lot faster than you so if you utilize these three key points you keep these things in mind when it comes to filling out your assignment of contract then you're not going to have any problems or at least you're gonna minimize your problems that you have when it comes to wholesaling real estate now if you want a copy of the assignment of agreement that I use in my business check the description box below there's gonna be a link that you can click on I will ask for your email so I can send you the document but watch this video again as you read through the document and you'll see exactly what I was talking about like this video share it with your friends and also subscribe to this channel and click the notification bell for more videos just like this one that's coming up every single week hope you enjoyed this video and I'll talk to you next time take care [Music]