HOW TO FILL OUT AN ASSIGNMENT CONTRACT | Wholesaling Real Estate

So here's the assignment contract. Again, same thing, add your logo over here if you need, or if you don't have one, no problem, just fucking delete that and you're good to go. Real quick, the assignment of contract is what you're going to use to sell your cash deals. So not novations, only your wholesale deals. Once you have a buyer, you're going to send them this document. Here you go. You're going to put your date, and this is going to be between assignor, that's going to be you, assigns to, assignee is going to be the buyer. So you're going to put your name or your LLC and then their LLC. They're going to be buying in an LLC. All of the assignor's rights except those specifically retained and reserved by assignor set forth in this assignment, title, interest, duties, and obligations under the real estate purchase contract or similar purchase contract, the purchase contract for the purchase of the certain real, real property located at, boom, and you're going to go ahead and put the address. And assessor's number, boom, you're going to put the APN. Good. Hey, you are assigning to them this property. Done. Easy. Purchase price and assignment fee. Assignee shall pay the amount of— now you're going to put whatever you're assigning it to them, not the assignment fee. So for instance, if you are selling this property for $150 grand and you have it for $100 grand, you're going to put the assignor shall pay the amount of, and you're going to spell out $150,000. You're going to spell that out in letters. You're not going to write it. And then you're going to write it, though, just the number. Right? 105, comma, 00— or I'm sorry, 150, comma, 000 right here in this box. So again, not the fee. You're not going to put $50,000 because that's what you're making. You put the entire assignment price, which is the sum of the assignor's original purchase price plus an assignment fee. Assignment fee is the amount equal to the difference between the assignor's purchase price and the purchase price under the purchase contract, or in the event the assignor is not the original buyer, the amount assignor has agreed to purchase the property for under a prior assignment. This is saying if we're JVing the deal, like for instance, let's say somebody sends me a deal at $105,000 and I assign it to somebody else at $110,000, right? That's all it is. The assignment fee shall be paid to assignor by escrow agent upon close of escrow. Close of escrow, look, you're just putting the date, the same close of escrow date you have in the contract. This is saying when it's going to close. Guys, our assignment contract is fucking bulletproof. Check out all these things. So the signee shall deliver to escrow agent a cashier's check, wired funds, or any other immediately available funds to pay the assignee's purchase price, all closing costs, fees, charges, and other amounts to be paid by the buyer under the purchase contract at least 2 days prior to the close of escrow date. Assignee acknowledges and agrees that the failure to provide the required closing funds to escrow date at least 2 days prior to close of escrow date shall be a material breach of this assignment. So they're fucking up. And it will result in the immediate termination of this assignment and all right, title, and interest to and the purchase contract immediately transferring back to assignor and the assignee earnest money defined below by being paid escrow agent to assigner, saying we get to keep their EMD. We'll get to the EMD in a second. Assignee has no right to receive or benefit from any cure notice set forth in the purchase contract. The assignment does not convey to assignee any right to receive or benefit from any cure notice set forth in the purchase contract. So, deposit. The assignee hereby agrees to deposit. Now look, depending on the deal, more often than not, we require $10,000 EMD. However, if it's like a $100,000 deal, we'll just do like $2,000, $3,000, $4,000, or $5,000. But what this says is, with— so with us, our EMD, if we cancel during the inspection period when we're buying from the seller, then we cancel it, we get our EMD back. Here, the assignor does not, or the person you assign it to does not get to keep their EMD if they back out. So when you are assigning to somebody, they are putting up $10,000 and they say, if I back out, you get to keep my $10K. So I always recommend doing $10,000, um, However, if the property is super cheap, let's say like anything under $200,000, you should probably do between $2,000 and $5,000. But I wouldn't ever do anything less than $2,000. And again, same here, you write out the entire thing. So you would write TEN, thousand, right? And then you would put here 10,000. And then you put here the title company where they receive it by. So here is where we're going to say, so if I'm sending an assignment to somebody, today is the 3rd of of, uh, February. I'm gonna put— do they have to put $10,000? I'm gonna put buy today. I'm gonna say you have to have this shit in today. Um, and then look, it says if you do not deliver the EMD, uh, by that date, that this shit's null and void. So we want to make sure— we want people to be serious. It's not, oh yeah, I'll put EMD in a week. No, you're doing it today if you want the deal. Once you sign this assignment, you got to put this shit in by end of the day. In the event the escrow agent is to release the original earnest money deposited with escrow agent by assignor prior to close of escrow as a result of the seller's breach of contract, or the deposit of earnest money by subsequent assignee of the contract, such original earnest money shall be released to the assignor and should not be paid to assignee. So this is saying if we have to put up EMD and for some reason the contract cancels, if we have to put EMD up with the seller and some reason the contract cancels, we get it back, not our assignor. Let's see, if the original earnest money deposit remains on deposit, an escrow agent, as of close of escrow resulting from assignment or renovation of the contract, escrow agent shall pay the original earnest money to assignor from the close of escrow. This is saying if we put EMD, if we put up EMD, let's say with the seller, we put up $1,000 EMD, and the contract closes, we get our EMD, we get that initial $1,000 back. Right? This is just all explaining EMD. Assignor's ability to enforce purchase contract and communicate with escrow agent and seller. So assignor retains the right prior— so before close of escrow— to pursue any and all legal remedies if necessary in the name of the assignor to enforce the purchase contract. So look, this is just saying that— this whole paragraph is saying that in the event something happens with the seller and they don't want to sell anymore, our assignor can also pursue— they can pursue them legally, not just us. Now look, subsequent assignee, assignment by assignee. This person that we're assigning our agreement to must provide to the assignor, the escrow agent, the name, address, phone number, and email of all subsequent assignees of this assignment of contract. So we're saying if you assign this to somebody else, you need to tell us who the fuck that is because we need to make sure that that person closes because we're the ones direct to seller and this is our ass on the line. Now look, as is purchased, what this is saying is that the fucking assignee is buying the property as it is. And that we are not fucking making any guarantees. It doesn't matter what we said about the property, they have to fucking confirm everything. Time is of the essence, right? Just basic legal shit. Additional agreements and acknowledgments. We're just letting you know we're a wholesale seller, we hold equitable interest in the property. Assignor may not be able to convey title to the property as it conveys to the title of property. Assignee is subject to performance by the seller in the purchase contract, right? They come through, they initial all of these. The assignee understands, acknowledges, and agrees there is no financing contingency. Look, you're buying it cash. Understands and acknowledges there is no inspection period. You're buying it right fucking now. You don't get an inspection period where you can back out. Non-cancelable, you can't cancel it. You do have the right to assign the purchase contract, or we do. You are, look, you're buying our contract, we're assigning it to you. We understand that the seller may leave behind personal items or garbage on the property, and that you are responsible for clearing and removing such items, not us. So if the seller leaves a bunch of shit, It's your problem, not ours. And now look, it's not considered valid until it's signed by everybody. Attorney fee provision: in the event of any litigation arising out of or related to this agreement, the prevailing party shall be entitled to recover from all non— the non-prevailing party all reasonable attorney fees. Look, in the case that for some reason you get sued by the person, you obviously haven't done anything wrong, so they're gonna have to pay your attorney's fees. And there you go, that's it. So assignor, Remember, this is gonna be you, so you're gonna put your name, you're gonna put your member of the— or so name, right? You print your name, you'd sign, you'd put member or manager if you're an LLC. If it's just you personally, don't put anything there. Date, same thing for the assignee. Super simple stuff, guys. This assignment we use for all of our deals everywhere, every single market. It's bulletproof. It makes sure that we're, you know, covering our asses, make sure we get our EMD, make sure everybody knows what's going on.