Can you make a living on assignments

[xburbx]

Can you make a good living at assignments working an average of 50 hours/ week.  I am looking for some average numbers.  How many hours of work will in general return how many deals.

[Ryan Webber]

90% of my business is wholesaling - assignments, double closes, and quick sales.  In my market with 200K population its easy (about 40 hours a week) for an ambitious person who runs their business right to make 60-75K per year.

I would have to say that income is less proportional to time inputted as creativity inputted.  Creativity with ideas/marketing.  I know wholesalers that piddle around and probably still make 40-50K a year, but to get past a certain amount a person will have to take it to a higher level.  100K+ is very possible in my market, but few wholesalers do what it takes to get there.  

[xburbx]

so you can make a good living at it, but big money is not there when it comes to assignments.

[PropertyInvestor]

I have just completed some Real Estate courses am a new Wholesaler Investor and currently in process of doing my first deal.  To answer your question directly, in my opinion, I believe, YES YOU CAN make an exceptional living from Assignment Fees provided 3 things:  1)  You must know HOW TO BUY these Wholesale Properties. If you purchase them right, you should have no problem quickly assigning them.  Not knowing HOW to buy them can automatically KILL the deal.  2)   It depends on what your Assignment Fee is.  Some people have 10k, 15K+ Assignment Fees per deal in their Contracts and are finding Buyers.....and 3)  It depends on HOW MANY wholesale deals you do per month.  There is a married couple in Atlanta that does Wholesaling for a living and does 6-7 Wholesale deals per month, netting 11K per deal.  (They are Millionaires, though!)  So, it is ALL contingent upon YOU and your aggressiveness.  I am very excited about getting started and look forward to doing at least 2 deals a month myself, netting 10K each, because I've been properly trained HOW.  It is very possible in Atlanta.  Location Matters, too.

Blessings to Your Deals!

[xburbx]

very interesting.  what type of homes are you focused on.  from what i understand, the mid-low income housing is the largest target.  if that couple averages 11k/deal, they must be in a very high income area.  if that is the case, is it easy to find investors looking to "flip" those upper income homes?

[PropertyInvestor]

I am currently focusing on mid-low areas for SFHs.  

No, it's not that the couple is focusing on a HIGHER income area, it is solely the ASSIGNMENT FEE that they are including in the Contract.  They, too are buying mid-to-average-income-neighborhood properties, but the key is the ASSIGNMENT FEE, and most importantly finding, negotiating, and buying the property CHEAPLY.  That's what I mean when I say you must purchase them CORRECTLY.  You HAVE TO get them cheaply.  So far every prospective home I've looked at was going to be purchased at least 50-60% BELOW Fair Market Value, but were already under Contract by another Investor.  Do your RESEARCH on these properties BEFORE you place them under Contract:  A.  Know the FMV  B.  Know estimated Repair Costs....and C.  Make sure you leave enough profit on the table for your Investor-Buyer when you assign your Contract to him. It's okay to make a nice Assignment Fee profit, afterall, you did the hard work in negotiating and finding the deal.  But always remember to leave a fair profit on the table for your Investor-Buyers, and treat them like YOUR CUSTOMERS, because that is in essence what they are to your Business.  

Glad to Help!

[xburbx]

do negotiate with cash offers usually or terms?

[PropertyInvestor]

My Contract terms are as follows:

All CASH.
Closing On/Before 30 Days.
"Offer Subject to Walk-Through Inspection and Partner's Approval"
(If you get some resistance with this clause, try to find another clause or "wording" that will allow you to get out of the contract if for ANY/SOME reason you didn't find a Buyer.)  If you are buying from an Institution, "AS IS", they will NOT allow the clause, but if you buy from a Seller (person), you can probably get away with using this "safety clause" in the Contract.  

[xburbx]

i am still amazed at 11k average.  have you tried to get up that high?

[Ryan Webber]

Average profit margins are completely dependent on your market.  In some of the bigger markets 20-25K assignment fees are normal, but you are dealing with half a million dollar houses.

[xburbx]

is it easy to find investors that would be interested in those 500k homes?

[Ryan Webber]

I don't do business in one of those markets, but I would hypothesize that the basic principles are the same.  You would obviously have to focus on higher end buyers/investors, but they are out there.

[sircaesar]

Hey Property Investor, I am also starting as a wholesaler in the Atlanta Market.. I have access to at least 50 wholesale
deals a month.  I would love to converse with you or network with you in regards to making headway. Looking to do my 1st deal in the next 2 weeks.. however I am looking or a title company that does double closings, and assignments.. I also want to recommend a good hard money lender to my investor(buyers)  

also do we as wholesalers sign just the seller contract or do we have to sign another contract with the buyer, other then the assignment contract? kind of confused as to how many contracts are being signed.. also do th escape clauses go into the seller contract, or assignment contract?


Ryan and property investor,
what contracts do you guys use for assignment, seller and buyers agreements,

I found these 3 at totalrealestatesolutions website, they have free forms and excellent rei resources.

Here is the Assignment Contract
http://www.totalrealestatesolutions.com/realestateforms/html/ContractAssignment.html

here is the buyers agreement http://www.totalrealestatesolutions.com/realestateforms/html/BuyersPurchaseAgreement.html

Here is the seller agreement
http://www.totalrealestatesolutions.com/realestateforms/html/SellersSalesAgrement.html

Let me know if these look legit

[PropertyInvestor]

Hi Sircaesar!

Congratulations on entering into the Real Estate Industry and preparing to do your very first deal in the upcoming 2 weeks!  Kudos!  :D  I would love to converse and network with you too!

Regarding the Contracts:  Yes, you are signing 2 contracts in the entire transaction:  1.  Your "Purchase/Sale Agreement" with your Seller and 2.  Your "Assignment Contract" that you will use with your Investor-Buyer when you flip it.  Keep in mind, when you "assign" a contract, you are in essence legally "transferring" or "assigning" ALL of your interests and rights in the original "Purchase/Sale Agreement" to your Investor-Buyer.  So, this means, that whatever TERMS or ADDENDUMS or CONTINGENCIES or CLAUSES you have included in your original "Purchase/Sale Agreement", when you "assign the contract", your Investor-Buyer now legally becomes the "buyer" of the property and is bound by all these clauses---NOT YOU.  On the contrary, when you do a DOUBLE CLOSING, you will be signing a separate "Purchase/Sale Agreement" with both your Seller AND your Investor-Buyer.  This method of closing will actually be two(2) separate transactions at the Title Company.

I had to search really hard to find an Investor-friendly Title Company in Atlanta.  I did find a good one that works with Investors, but they don't do do DOUBLE CLOSINGS, only Assignments.  I intend to use them for Assignment deals, but I am still in search of a second one to do DOUBLE CLOSING deals.  Keep your ears/eyes open!  I will give you my list of Hard Money Lenders in Atlanta.

Yes, I am actually using the exact same Contracts from that website, also.

Pardon me for being lengthy with the response, but I wanted to make sure I addressed all of your questions.  I know Real Estate is a learning process, and you actually NEVER stop learning.  I am excited about my new venture!  I look forward to speaking with you soon.     :D

Blessings to You.

[sircaesar]

Hey Property Investor, thanks for the warm welcome
I just sent you an email..

Ryan, everyone else, what are you guys doing to find your buyers? what methods are working  best for you..
I'd figure I would call a couple of the "we buy house" investors to get started
any suggestions?