I am interested in wholesaling homes in NY by assigning contracts. Is it legal?

Asked by Golfwiz, Buffalo, NY Wed Feb 25, 2009

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Leasing To O…, , Dallas, TX
Wed Feb 25, 2009
Why wouldn't it be legal.

If, from what you asked in your question, you find a deal on a house and get it under contract for a great price or terms......you can sell or assign your position in that contract to anyone as long as the original contract that you used did not specifically state that it was NOT assignable. Be careful though. Many contracts that are used by your local Real Estate Agents are probably written so that it's NOT assignable...why? Because the lawyers FOR the Real Estate Brokerages wrote the contracts so that it would be in the best interest and
protect the Real Estate Agents/Brokers themselves.

Best bet is to find a Real Estate Attorney who has experience working with Investors as well as Real Estate Agents. True investors (and newbies starting out in the business known as Bird Dogs), who come along great deals, but don't want them for themselves, will sell/assign their deals to other investors. This is what myself and my associates do. We "control" properties without actually "owning" them just like the quote from John D. Rockefeller who said: "Own nothing, control everything."

I think that that other responders were refering to you "assuming a mortgage" or having "seasoning issues". I do agree that there are very few, if any, more mortgages that are written without the "due on sale clause" by lenders. BUT....there are ways to assume an unassumable mortgage too. You just have to think outside the box (and do it legally of course). This is more of a sophisticated technique of acquiring properties too complicated to start outlining here.

Hope this was the avenue that you and your question were inquiring about.
Web Reference:  http://www.hhiinvesting.com
1 vote
Bill Eckler, Agent, Venice, FL
Fri Feb 27, 2009
The best source for accurate information on this issue is an attorney. Contact an attorney for their input.
1 vote
Fri Feb 27, 2009
There is a saying that " All Real Estate is local " basically what may be legal and doable even within a state is totally different somewhere else . If you are saying "I own these homes can I do this ? " the answer is yes . Many deals -foreclosures , short sales , preforeclosures are being done with the knowledge that the property is going to be passed on in some way almost immediately . Many of todays deals show a purchase and sale on the same day or within a day or so . I work with several local investors who dont know what they will do with a purchase until the right deal is presented to them .Are they going to sell right away AS-IS , will they fix up the property for later sale , will they rent , will they rent with option to buy There is nothing wrong in saying "After I buy this property , Im going to do this with it " - But , even in areas where you dont need a lawyer to close a deal , In your case , I would certainly make sure that you consult one , to make sure all legal and title issues are taken care of BEFORE you take the next step
0 votes
Everett Perry, Agent, Fresh Meadows, NY
Wed Feb 25, 2009
This was VERY common in the late 90's but most of the new contracts are not assignable. Banks also might have an issue with chain of title.
Web Reference:  http://www.uvpinc.net
0 votes
Melanie Lich…, , 11576
Wed Feb 25, 2009
I agree you need to ask an experienced real estate attorney. If you are doing business here in Nassau County Long Island and would like to contact me via email I could refer you to a local lawyer.

Melanie Lichaa
Licensed Real Estate Salesperson
Century 21, Laffey Associates
0 votes
Cheryl Cairns, Agent, North Reading, MA
Wed Feb 25, 2009
You need to ask a real estate lawyer in your state!
0 votes
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