Real Estate Investing Blog

Hi Michelle,
I absolutely admire what you are doing here for the ForeclosureMillionaireClub.com members with an unbelievable amount of patience and I want to use this extraordinary information source in this industry to it’s fullest extent.

I listened to your several sessions and I will continue to do it in any available time, but I also want your information to transfer into a productive activity.  Because I want to start to using immediately if I will find acceptable deal, However, .. I still have a question.

Q.  At what stage of Short Sale process can the investor, using an Option Contract, assign it to a buyer?

Thank you again for the opportunity to be here in the club.
Josef Schneider.

Josef,
Thank you SO MUCH for your feedback.  When I read emails like this it makes me want to do even more. 

Answers. 
You can do it an any time in the process, BUT, if we stick to our discussion that we had about using Options it would go like this:
1) You have a ready buyer in the wings
  a) You find the deal (the property)
  b) Get the docs completed with the seller: purchase & sale, option, etc.
  c) Negotiate your short sale (if you are doing a short sale)
  d) Set the closing date with the bank.
  e) Set the closing date with your buyer and explain your requirements for when he/she has to have the funds to your closing attorney
  f)  Assign the option on closing day.

OR

2) You have the deal (the property)
  a)  Get the docs completed with the seller: purchase & sale, option, etc
  b) You find your buyer
  c) Negotiate your short sale (if you are doing a short sale)
  d) Set the closing date with the bank.
  e) Set the closing date with your buyer and explain your requirements for when he/she has to have the funds to your closing attorney
  f)  Assign the option on closing day.

OR

3) You can assign the option prior to closing - assigning it to a buyer WHO WILL CLOSE and not leave the Seller hanging. Meaning they will come through.  AND if there is a short sale to be negotiated - that they will do it. 

If this is what you choose to do - you really need to be sure that you don’t assign it to someone who will “flake off”.  Even though they have given you $ for assigning the option to them, be sure about them, because if something, or all of it drops through the cracks - the seller is only going to remember your name.

Hope this helps!
Best,
Michelle
michelle@investorwealth.com
770-338-2797  10a-5p Eastern M-F