investors vs homebuyers(assigning???)

I don't think so. Don't see how it could be. Hopefully someone more experienced will jump in, but it never would have occured to me that it would be.

I don't think there's as many "illegals" in REI as some people might have you think. More common / less common, maybe, but not too many illegals that I've come across yet.

HTH!

Tracey

I hear that...I remember listening in on a teleconfrence from one of the people that was a speaker at a real estate investors club...And I believe that he said something bout assigning to a regular home buyer is illegal...That is the only reason I am asking...I don't know if I heard wrong or not...I just wanna cover myself...

No it is not illegal. If you take a close look at what you are doing, you are creating a deal with original seller to purchase their property from them. When you have the "and/or assigns" clause in the contract and also have the property locked up in YOUR name, you for all purposes own the rights to that contract, including the right to sell your rights to purchase the property. So, with the fact that you own the property rights through the contract, you are in essence representing YOURSELF as the seller of the property.

Why most realtors think it is illegal is because they believe that you are marketing a property for a purpose of making profit by representing a seller and a buyer. Inorder to do so you NEED a license. BUT, since you OWN the property (or the rights to purchase the property and therefore own the property for a set period of time indicated in the contract) you represent YOURSELF, just like an original owner would do if he sold his home as FSBO. So there you would need a license.

Now think about this carefully, if you sold the property by assigning the contract to an investor, how does that differ from selling to a first time home buyer? Just because a person is an investor and doesn't work directly through a realtor doesn't mean the process at which a transaction is to take place is any different. So the short answer, no it is not illegal to assign a contract to a home buyer. The same methods to acquire property by getting their criteria is used for obtaining an investors criteria. THe difference btween you and a realtor is that YOU will be locking the property up and owning said property through the rights to purchase the property as specified by the contract. There, YOU will be selling the home that you were giong to purchase originally, to another person, by assigning your RIGHT TO PURCHASE THE PROPERTY of them.

When you have something in contract, you own the contract and what it secures, just like when you buy a car from a dealer, you own the car and the contract that the car secures. The car dealer no longer owns it. So what does the dealer care what you do with car as long as they get their money? YOu can turn around, put a turbo, cold-air intake, new pistons, cpu, a phat car stereo system, and rims and then sell it for 15k more than what you bought it for, before you actually give the car dealer his money and make 15k on the deal. The dealer only cares about getting his money. Same with assignment of contracts. There are too many examples of people here on this forum and people across the country, NOT to mention Dean and all his success stories for it to be illegal.

I like to believe realtors and brokers have a monopoly on the industry and will do anything to scare their competition away. But thats why education and due diligence is important, becaues it become ur weapons when someone says something like that too you and tries to discourage you.

Hope that makes sense!

I COMPLETELY agree with you, but some laws are just strange I think...I think it would be dumb if it is illegal to assign to someone who just wants to buy a home...I thank you guys and appreciate your guys help...