124 DEAN GRAZIOSI
In this example: ! 4HE SELLER OF THE PROPERTY " 9/5 n THE “ matchmake” # 4HE END CASH BUYER
Your buyer must be a cash buyer, as you can’t get banks to pro- vide mortgages on an assignment deal. But we’re working with cash investors, so that doesn’t get in our way. You’ve done everything we’ve taught you, the marketing, the phone interview with the seller, and the profit formula. You’ve come to an agreement with the seller on a price that’s going to make this a really nice deal. It’s time to lock it up. You write up a purchase contract with the seller. You both agree to the terms, including the price, closing date, inspections and other things found in most real estate purchase contracts.
One thing that comes up at this point is earnest money. You need to keep this amount as low as you can.
Earnest Money for Assignment Contracts You must remember that when you assign this deal over to your buyer, the earnest money you deposited will be transferred to their deal, so you’re out of pocket this amount.
It’s not a problem to be honest with the seller and tell them that you’re transferring your interest to
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