Expert: Matt Heisler - 8/10/2008

Question
I work with a group of investor/partners. They are looking for deals but don't have the time to find them because they are over seeing their rehabs..I want to assign a REO..I understand that if the contract states that it is unassignable that i can put a line through it..which will allow me to assign the contract..I will include in the contract that i want to have the property inspected...  THEY ARE LOOKING FOR MORE DEALS.... can i do this for them?

Answer
Hello Alvara:


If I read your issue correctly, the bulk of your question is around making changes to a bank purchase contract. The short, but overly simple, answer to your question is you cannot make the changes you want.  Typically, bank contracts are non-neogiable or editable.  Making your changes would require the bank to sign-off on them, which isn't going to happen, so they can't be enforced.

There are many other ways to solve your issue though. You could have your investors form a legal entity to buy these properties.  You could have a main person "flip" the property one day after purchase from the REO.  It depends on how much risk the buyer is willing to carry.

The long answer is that I can't give you a clear answer with out the copy of the contract and the seller's attorney information.  There are always exceptions, but I don't see any compelling reason why your exceptions would be allowed.

Sincerely,

Matthew D. Heisler
Heisler & Mattson Properties
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matt_heisler@heislerandmattson.com
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