I was told that in NJ I cannot get an option on a property and assign this to someone else if I am not a realtor (or take an option contingent upon finding someone to sublease if I am not a realtor.
Does anyone know if this is accurate or if I need to find a workaround?
Thank you,
Peter
Replies
Peter:
The workaround would be to get a new realtor or lawyer.
Mine has held escrow for me on an assignment..... and there were no realtors involved. The buyer's attorney and sellers attorney did all the paperwork, they knew it was a flip. My lawyer just acted as escrow agent (because the buyer's lawyer insisted that an escrow agent be used for assignment fee). Otherwise i did not even need a lawyer.
So I guess the three lawyers I dealt with disagree with your dumbass realtor :-)
EE
Wakal, In the future, take off your caps lock!
WAKAL REYES said:
Frank,
Wakal,
From my understanding, your 4th bullet point is just the opposite. I believe it should read, "In case you CAN do a simultaneous closing or double-closing, you NEED a transactional lender..."
This is because you need to fund the first deal (with the original seller) and because most closing agents or title companies will NOT do the deal unless the funds for both transactions are in escrow.
Please correct me if I am mistaken in this regard.
Also, it is ALWAYS preferrable to do an Assignment due to Closing Costs and chain of title. With double-closings, your name/company name will be on the Title and recorded as such. Also, you have to pay closing costs TWICE. Once as the buyer and again as the seller.
From what I've learned after going to a couple of TSM workshops, (especially from the legal firm listed under our vendors - Levy, Ehrlich & Petriello), is that you must have a clause or addendum added to the contract for your protection. So you may not need a broker's license, but you definitely need a great attorney who knows what you're trying to do.
Thanks, Wakal. That's great advice on necessary team members. I've never heard of a transactional funding company before. Should make for an interesting search!
HELLO TIFFANY ANDERSON YOU DON'T NEED A LICENSE TO DO WHOLESALER IN USA
I CAN HELP MY EMAIL IS GREENREHABBER@HOTMAI.COM
BUT AS YOU CAN KNOW REAL ESTATE IS ABOUT TEAM.
1.- REAL ESTATE AGENT THAT SUBMIT THE OFFER
2.- YOU REAL ESTATE AGENT HAVE TO THINK AS INVESTOR I MEAN HIS/OR HER HAVE TO KNOW HOW RUN THE NUMER THAT YOU CAN HAVE ENOUGH ROOM TO MAKE YOUR PROFIT AND FINISH THE DEAL REMEBER YOU MAKE THE MONEY WHEN YOU BUY, NOT WHEN YOU SELL.
3.- YOU HAVE TO HAVE YOUR TITLE COMPANY IN PLACE TO CLOSE THE DEAL, MUST OF THE TITLE COMPANY THEY SAY THEY DONT DO SIMULTANEOUS CLOSING BUT IF YOU DONT GIVE UP YOU WILL FIND.
4.- IN CASE YOU CANT DO SIMULTANEOUS CLOSING YOU HAVE TO HAVE A TRANSACTIONAL FUNDING COMPANY IN PLACE THEY WILL LEND YOU THE MONEY FOR 1 DAY TO 30 UNTIL YOU FINISH THE TRANSACTION BUT YOU HAVE TO HAVE YOUR END BUYER IN PLACE (I MEAN THE NEW BUYER)
5.- YOU HAVE TO HAVE YOUR REAL ESTATE LAWYER IN PLACE
6.- IF YOU GOING TO DO REHAB, IS BETTER IF YOUR BUY A REAL ESTATE INVESTOR OR WHOLESALER SOFTWERE
AND CAN WORK WITH INTERIOR DESIGNER, IF YOU DONT HAVE MONEY TO PAY THE INTERIOR DESIGNER SAY THAT YOU ARE STARTING AND YOU ARE WILLING TO SHARE YOUR PROFIT.
7.- GO TO REAL ESTATE INVESTIR MEET UP GROUP AND TALK TO REAL ESTATE INVESTOR, WHOLESALER, BIRG DOG, SAY THEM YOU ARE STARTING, ASK QUESTION WHAT TYPE OF PROPERTIES ARE YOU LOOKING FOR, CAN I HELP TO FIND DEAL.
8.- EACH DEAL THAT YOU WILL FIND IS DIFFERENT, SO MY ADVISE TO YOU IS THAT THE MUST HAVE
1.- ONE MENTOR THAT HAVE A GOOD TRACK RECORD
2.- HAVE A GREAT SYSTEM IN PLACE
3.- HAVE STRONG MIND-SET, WHEN YOU SAID YOU WILL DO IT, DO NOT LISTEN OTHER PEOPLE, MAKE YOUR DREAM
You're all talking about two distinctly different things. Are you asking what the LAW allows or what the BANKS allow? The law, in NY and NJ allows for assignments.
The banks, in short sale situations, do not. I've been doing assignments in NJ for many years and they are legal.
The banks had no problem with assignments in a ss opportunity in the 90's, only recently.
They are only opposed to taking less than is owed on their collateral by an investor, only to see that investor make a huge amount on their loss. I say, then the banks should learn how to be investors instead of banks.
If your option does not disallow an assignment, it is fine. BUT, what are the exact circumstances? If this is a short sale, the BANKS won't allow it. This is a different story.
That's why I can't stand most attorneys.
I'm hearing the same type of thing as well. An attorney (here in NY) told me to just be sure I don't need a license when wholesaling. I'm looking for answers now. I'll get back to you as soon as I find an answer.
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