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Initial assignment agreement

what's up guys it's awesome redford here today we're talking about assignment agreements so if you're anywhere to stay and you want to wholesale houses you need to have an assignment agreement because once you go into a purchase and sale agreement with your seller you need an assignment agreement to assign that to your end buyer so that's what we're going over here today and I got two things for you one I'm gonna show you how you can do this virtually I'm gonna show you how to do it on the desktop I'm gonna show you how you can do it virtually and you can have people sign over the internet without having to go and hand somebody an assignment agreement and number two I'm gonna give you a copy of my assignment agreement so hang out to the end so you can see how to get a copy of the assignment agreement but that's what I'm going for you here today so if you've ever gotten any value from this and you want to learn how to do real estate you want to learn how to make more money and make sure you hit that red subscribe button below so you can sign up for notifications you get the videos and the content as soon as it drops you can hit that thumbs up button for me if this has ever provided value and also drop any comments below any comments any questions any concerns and my attorney always wants me to say this it's the disclaimer I'm not an attorney I'm not a lawyer I'm not a financial adviser I'm not a fic I'm not anything of those professional designations these are just my personal experiences sharing it with you so make sure you go and you know contact your own people not to make sure you're doing things correctly so we're going to get into it here today so again what is the assignment agreement it is an assignment agreement from a seller to a buyer wanna make this very very clear here you are not like I say you get an agreement with the seller for seventy thousand dollars you are not selling that house to your end buyer you cannot sell something you do not own you are assigning your interest to your purchase and sale agreement to the end buyer so that's why it's called an assignment of real estate purchase and sale agreement you're assigning your contract you're selling your contract you are not selling the house I want to make that very clear here because a lot a lot of people get that confused and again you know different states have different laws in different guidelines regarding real estate because it is a business in every single state I have attorneys involved so make sure the things that I say for what we do in our state are correct for you and your state before making any massive large decisions so again this is my experience again when you're dealing with Realtors and deals like this don't it be sometimes hard to explain what an assignment agreement is because they're so used to use in a real estate a board purchase and sale agreement because that's what they use all day every day so if you call a realtor and say hey I'm selling my contract then some of them won't understand what you're saying because they're so used to a seller selling a property not a wholesaler assigning the property so that's something you may have to battle with to get them past that barrier when you're in contract with the seller and you find another investor most investors understand what an assignment agreement is so that's what we're going over here we're going over the details of it we're going over the specs over it so you can understand it and so hopefully you'll be able to explain it to somebody if they do not know what that means so let's get right on into it like I said this is an assignment of a sales contract for real estate it's assignment of the purchase and sale agreement not selling the property so the address goes right here whatever the property address is you can use Main Street for valuable consideration in the gross amount so this is let's say you're in contract for $70,000 and you're selling it to an end buyer for $80,000 so this would be eighty thousand dollars it's the gross amount which includes the sale of the original purchase contract as defined below which is acknowledged the assign or is you you are the assign or you're the one assigning the property so this is you here by a size to assign E which is whoever the head buyer is the end buyer in the sign II we do the original purchase and sale agreement so on the original purchase and sale agreement between you and the seller you have to put that date in here so you know they signed it five days ago you know before ten twenty whatever the date that they signed the agreement and then between the seller wherever the sellers name is and me as the buyer so this is you as the buyer so you're the assign or and the buyer sign over and the assignment agreement and the buyer and the purchase and sale agreement and the in consideration for this agreement signing so deposit with whatever title company you're using here so you know trip away title comfort they have to deposit their earnest money deposit to that title company to make this contract valid the assignment in the amount of so this is talking about that earnest money deposit you will need to collect earnest money deposit on a property to tie your buyer to that property when you go into contract with a seller you usually put you know $100 $500 $1,000 when you're selling that to an end buyer you want to make that as much money as possible so they don't want to walk away from the deal because they'll lose that money because right here says non-refundable assignment earnest money deposit so this is a non-refundable deposit so you want to make it as much as possible $2,000 $10,000 $20,000 so we're just put we should put $5,000 in this one as a non-refundable earnest money deposit and they can wire the money in but they need to have it in within two business days so if they don't have it within two business days this is a non valid contract that did not abide by the terms of the contract and you have to get that earnest money deposit because if you don't and you know closing day comes and they say and every month I don't want to close they walk away from for you know for free but if you have a non-refundable earnest money deposit of $5,000 and they say man never mind I can't close then you get that $5,000 you know then you can pay the seller some money you know chinamen the pieces right there to have money and most times buyers won't want to walk away from that amount of money so they'll usually get the deal done for whatever reason if you dissolve this contract for whatever reason that's when the buyer is the earnest money deposit back that's the only time they get to earnest money deposit back is if you for whatever reason dissolve this Agreement I say because the seller doesn't want to sell and you have to dissolve this agreement part of this assignment earnest money deposit here in a sign a show place to learn 50 earnest money deposit a sign or has on deposit so basically what this is saying that this replaces your money that you currently have on deposit contract for sale with the title company Parsi and verification of the same title companies can then release your earnest money deposit from the seller so if you put $500 down right here where it says 250 if you put $500 down change this to 500 but this money would part of money would replace your earnest money deposit with the sellers I don't represent this is just a whole lot of legal jargon so we're just gonna kind of fly through this represent some warranties that exhibit a attached to this assignment is a true and complete copy of the purchase and sale agreement so any assign any buyer want to see your original purchase and sale agreement because what they're agreeing to is to take your place and your original purchase and sale agreement with the seller so they have to understand what your terms were so they can make sure that they can follow through whatever terms those are if you agree to you know a 10-day lease back with the seller your end buyer has to give the seller a 10-day lease back so whatever is in your contract they're assuming that so they have to see it to confirm that they can you know follow through with those commitments that you made some buyers will want to see it to see how much money you're making on the deal and count your pockets so when we send the purchase and sale agreement to the end buyer along with this assignment agreement we black out our purchase price so they can't count our pockets they can see everything else in the do and see all the times all the conditions but they can't see how much money we're making personal sale agreements in full force in effect designer is interest in the purchase agreements free and clear of any prior assignments so you haven't previously already assigned this to somebody signer has good right lawful authority to execute and deliver this meaning that you're actually in contract with the seller no party to purchase this agreement is presently in default with respect to the performance of such parties obligations again you haven't broken your agreement with the seller at this time all materials relating to this project has been delivered to the assignee and reports she'll be assigned to assignee if you've gotten any reports you give those to the tier n buyer all expenses incurred by the assignor prior to this agreement shall be the responsibility of the assignor so if you went out and had you know soil tests done or home inspections done you are assuming that cost your end buyer is not reimbursing you for that cost they're paying you a fee and that's that no broker is entitled to a fee other than those identified in the purchase agreement or by separate written agreement between a sign or assignee so there's no Realtors involved here unless it specifically states that there's a realtor involved here so sometimes a realtor will bring a buyer to argue and then we'll pay the realtor to bring the buyer to our deal again this is just a disclosure that I'm a licensed real estate agent here in the state of Ohio so something I have to disclose here in Ohio so if you're an agent in other states see if that's something you have to disclose by accepting this agreement assignee assumes and agrees to perform all the obligations under the original purchase and sale agreement included failure to perform the assumed obligations on a time of timely basis so basically this means that they have to do what your original purchase and sale agreement States the assignment should be interpreted under the laws of County Medicine something comes up ask to be brought to the courts in that current location current city Society says purchaser does not successfully acquired title to the property so if I do not show immediately released the former and somebody deposit to the Cellular / assignee so if we're in an agreement with the seller and we cannot get free and clear title which means that the ar-10 buyer will cannot buy the property because the title is not clear if the deal falls out for that reason the seller does not get the earnest money deposit this you put up you get your money back on deposit from the seller and your end buyer gets their earnest money deposit back that at that point it's refundable because you couldn't provide free and clear title that's what this means this is just a closing date so a signing makes the settlement on the property on or before whatever day you need to close you want to make this day as quickly as possible you know you don't you don't want to keep dragging this out because it just leaves more room for error and for a way that the deal could not go through so for this you want to make it as quickly as possible 1 days 5 days 10 days maybe 15 days as quickly as possible if a signee does not purchase clothes on above said property by this date due to any type of assignee default a society shall be responsible to pay in full set assignment consideration to a signer so if you have a $10,000 assignment fee and they don't close for whatever reason they still owe you that $10,000 assignment fee if title is clear the sellers on board if they just decide not to close for whatever reason in addition title company show immediately released full assignment earnest money deposit to a signer so that's why we keep the earnest money deposit you get paid that if your buyer does not perform this shall also serve as a release of contract and the sign or is permitted to sell the property in any other parties without any recourse by the assigning sauce purchaser so if they do not follow through with their agreement your buyer and then you keep their earnest money deposit you can then go sell that property to another buyer settlement does not occur on our before this day due to reasons other than assignees default closing may be extended for up to 30 days at option of the sign-on so basically if you can't get free and clear title by the closing date it can extend another 30 days to allow you to get free and clear title so then the buyer can purchase the property and then signature page that follow so right here you as the assign award the assignment agreement the buyer is the assignee signs the assignment agreement and now the buyer is buying the property from the seller and then you're making the margin in the move so that's what an assignment agreement looks like wanted to break it down to hopefully it makes sense it's not you know overly complicated it's only a few lines that you have to fill out in here but the essence of it is they need to know what they're agreeing to take your place in meaning that they need to see a copy of the purchase and sale agreement and see whatever you agreed with the seller at that time and you have to figure out how much earnest money deposit in the closing day you want to make an earnest money deposit as high as possible and you want to make the closing time line as quickly as possible because that's how you get paid is by getting the deal closed as fast as possible and making sure that your buyer actually closes the deal so that's what this does ties people to a commitment so like I mentioned the two things that you're gonna get here I can take this assignment agreement and go and hand it to your buyer and have them sign this agreement for you or you can have it done all online one of those virtual as possible because it saves time instead of you having to drive to go and see the buyer sign the agreement drive back upload the agreement to your system if you can do it all online from the very beginning just from right from an email it simplifies the entire process a lot so we do it online so you can get systems like dot lucam you can get a system like DocuSign calm write signature comm these are all East signature platforms and basically what those do as you can put in the details of the agreement so you can come here you can fill out you know the address and the purchase price and the sellers name and type them all in there and then you can assign the signature lines so you can assign the sign order to yourself and you can assign the signee to your end buyer and you put those email addresses in there and you click Share and what that does is it sends you an email and it sends your buyer an email with that fully filled out so then you'll go in there you'll sign it your buyer will go in there look it over make sure it looks good sign it and as soon as both parties have signed the agreement it automatically sends him a filled out copies fully executed document and it sends us a fully executed document so it saves time and save systems and saves money you don't have to purchase papers so it's just an easier process overall for us and our business we use podium it's a CRM where we made write signature link to our podium so right inside of our CRM as soon as we get somebody that's interested in the property we can send that agreement to them with the clicks of two buttons so that's what I'm gonna show you in here so this is an all podio system you come in here the seller name you know Joe seller would be here seller email will be Joe at Joe calm and then you scroll down here and you fill out everything in between so assignment slash purchase selling rooms so the assignment let's say we have a $70,000 with our seller and we're selling it to them at 80 thousand dollars so they do eighty thousand dollars right there how much earnest money deposited we're gonna collect let's say five thousand dollars we want them to close on or before you know next Friday you put your title company in here whatever title company you use so the assign or is you the seller whoever you went into contract with to buy the property that's who is signing it so that would be you and your email you know seller and it's celery calm the assignee whoever your buyer is if they're buying it as an individual or if they're buying it as an LLC that would be buyer and you know their email is called a buyer at Viacom and then any other terms and conditions so again this is where any anything extra you know a sign or an assignee and we blink whatever you guys right there so you're good there so you generate PDF click that button a fully executed document will come in here scroll down to the bottom click this button and then you review this to make sure that it makes sense you got the address here you got the price there you got as the buyer and the assignee you got the seller you guysyou and then this day should pull when your original purchase and sale agreement was signed I'm using this as an example so this deals not in our system but our system tracks when the first contract was signed and puts that date into the assignment agreement and then it goes in here you got the title company you got a five thousand dollar earnest money deposit you've got you know automatically goes into the title company and then down here and here's what you see the additional times loading as well and then down here it automatically puts in you as the assignor and the buyer is the assignee so you verify everything looks good and then what you click is you click send via e sign so you send them emails they send you an email and it sends them an email via e signature so they pull it up on their phone they swipe through it click sign now and the deals done and then it will come once it's fully execute it'll come back into our PO do system fully executed agreement and then we send that to our transaction coordinator so how'd you get into this as you do more deals as you make more money you want to simplify the system instead of driving all over the city you know going to the title company going and meeting a cyan't get in contract sign from sellers and buyers and being all over the place you can do it all from your desktop on a computer so that's something you're interested in comment below I can give you more details on it so that's how you can do it virtually but like I said the second thing I promise you is that you were gonna get our assignment agreement so if you hit the link below you actually get a copy of our assignment agreement that you can use again make sure you want to by your attorney make sure it works in the state that you're in and just confirm that everything's aboveboard with a professional of yours because this is just our experience we did a previous video on how to fill out a purchase and sale agreement so if you haven't watched that yet make sure you take a look at it and then this is the assignment agreement just clarify one more time you are not selling the property you cannot sell something you do not own you are assigning your interest to your purchase and sale agreement to your end buyer that's how that process works and that's what an assignment agreement is for because you're assigning interest you're not selling the property I hope this brought some clarity to the process into the situation anything didn't make sense if you have any comments make sure you drop them below so I can answer them if this added value to you if you want to learn more about real estate if you want to continue to see our content make sure you hit that red subscribe button below and turn on the notification button when you do it hit that like button hit the thumbs up button YouTube loves when videos get thumbs up and they push them to the top so I'll greatly appreciate it if you could hit that thumbs up button until next time we'll see you that