Realtor/Attorney states its illegal to assign properties in NY State!

Realtor/Attorney states its illegal to assign properties in NY State!

So i go and follow the RBBP, and meet a nice RE agent , who then brings in her partner who is an agent and realtor as well. I explain to them i want to buy, fix, and flip asap creating a 20-25k profit like Dean said to do. Then the big question comes out after a nice conversation. Where are you getting the MONEY to pay for these properties... I freeze and realize i should and read more and should and prepared more because i only expected the other agent to be at the table discussing REI. I told him I have other investors willing to take the deals on my behalf and then i mention assigning deals to them and me being the middle man. He then looks at me strangely and says "You know that's illegal right!?" and refers to some law in NY called "HOME EQUITY THEFT ACT" stating you cannot make money that way , but only if you buy the property first (with my own money, so he says i need a lot of money for this to work) then you can sell to whomever. So i guess the question to you DGers is is it illegal in the state of NY, can you provide more info maybe links? Should I scratch this agent off or word everything differently. Plus he told he he can't tell me the hotspots of any areas but can recommend me areas and that for him to do that i must sign a BUYER-BROKER CONTRACT . so help!!!!

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im sorry i meant her partner

im sorry i meant her partner is a realtor and attorney, not agent


Andrew

Do not sign that contract! It sounds like that is a Exclusivity contract. Basically meaning that no matter what property you buy and whether the agent is involved or not, they get paid. BEWARE of that! Well if assignments are illegal in New York, do double closings. I highly doubt that though, talk to some more RE attorneys before writing off assignments. Go to REI clubs and ask if other investors are doing assignments of contract.

RENinja

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"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee


Andrew

Now wait one MINUTE! I read that document online! I am NOT a lawyer, but as best I can understand, it says is that there must be full disclosure to the seller, and terms of the contract must be fully disclosed. I don't see anything in there about assignments of contract. It says the document pertains to properties in foreclosure or foreclosed on. Hmm... did this attorney actually understand what you said?

RENinja

__________________

"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee


Honestly, im not sure if he

Honestly, im not sure if he understood what i meant and he didnt seem to be interested because he didnt want to go to jail for illegal activities. I felt confused after he told me that. plus im very new to the investing world but i have to make this work, i need to. i dont care how much work i need to put in it. the first deal needs to get done and done legally


There is a

There is a misunderstanding....they are totally confused as to what your strategy is. The Home Equity Protection Theft Act refers to sellers in foreclosure. The scam usually has the seller deeding the house to the buyer and the buyer offering to make up the back payments while he leases it back to the seller giving the seller time to make up the back payments, then the seller can buy it back from the buyer. What happens is, after the buyer has the deed, he sells the property and takes off with the seller's equity. This is in fact illegal. Somehow they have your strategy confused with this. A lot of times lawyers aren't taught creative real estate transactions in school, so they don't really know about it until you educate them.


Hmph...

Find someone else. Since you are working to get that first deal done, you don't need someone who is going to be giving you problems. You could go back and explain that you are selling your interest in the property, you are not selling the property itself. Can you give me a more in detail explanation of what he told you about assigning being illegal? Specifically why it is illegal?

RENinja

__________________

"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee


Assignment of contracts

Assignment of cotracts are legal to do in all 50 states, you just need to find reatlors and attorney's smart enough to know the law, remember not all realtors and attorneys are not created equal, Just get advise from the people who are doing the deals, Go to REI meetings and network, good luck out there, action=success...

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thnks guys, great info.

thnks guys, great info. (Don't want to go to jail for dumb reasons is all Smiling) and to REninja i think TRSD explained it will what the attorney/realtor was talking about. Exactly what he said. other then that, i don't think they will be working with me for those reasons. Plus the attorney told me something about another investor like me a couple months back told them the same and the investor decided not to work with them for similar reasons. So that is a big sign to me, meaning the other investor was smart enough to know these weren't the guys to work with in the REI business. Also if you guys want , you can add me on skype and ill gladly accept to talk to more like-minded people thanks once again!! Skype ID : dgandrew87


Move on.....

They won't bother with you because they know you don't have the funds.

This is a perfect example, no diss at all, but reality, of jumping headfirst into an empty pool; you had no idea what you were talking about and realistically you most likely explained your situation wrong, and that was that.

I'll keep saying it again and again and again; if you have no idea what you are doing, do not walk into an agents or attorneys office and think you can wing it. The mentality that you can go from agent to agent in some cases will backfire and will keep you from achieving what you want.

My advice to you is don't make any more moves until you are clear and confident of what you are doing and not trying to wing it.

Deals will be around for eternity; take your time and know what you're doing.


I second that sentiment...

...fake it 'til you make it doesn't work when working with people that are more knowledgeable than you. Never has. Never will.

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Always Looking to Acquire Houses | Always Looking to Amaze Investors


thanks elixbrown, your right

thanks elixbrown, your right . I was was winging it. basically faking it till i make it without understanding the information better. I will take my time and study this more vigorously. I know your in the NY area, we talked once before. You think we can meet up and or skype each other so i can learn from you? thanks

~Andrew


Assignments

Elix and Bill are right...get a good hand on what you are doing before discussing assignments with realtors and attornies. Let them know you are assigning contracts...not houses...you are assigning paper (contracts). It is all in the wording. It is not illegal to assign contracts. It has been going on for hundreds of years wheather it is real estate or assigning businesses or whatever. Don't tell them you are assigning houses...you are assigning paper to investors. They can't tell you it is illegal to assign contracts.

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Andrew...

when,..........when, you get a better handle on things, you tell people you flip contracts.

This is the lingo that is used in NYC


Ok elix , will use that term

Ok elix , will use that term with them once i understand everything down to every detail. Its a lir of info to digest but well worth it n fun to learn like an adventure


Learning Curb

Hi Andrew you got alot of good advice from everyone an Elix is a seasoned local an thats even better an hes good too. An get involved with a local REI Club, now thats an awesome start an dont be afraid to ask we are here for you, have a great day, Jim

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jbischoff


NYC Networking

Andrew, go to

www.greenpearlnetwork.com

This is one of the primary sites for NYC networks

This is where you find real cash buyers, agents and attorneys that will help you.

But, don't come with the nonsense. look up some of their events and attend so you can understand how things work here.

Hope it helps.


Andrew

Whew! glad elixbrown posted. Elix, I was considering directing Andrew to PM you, but didn't know if you didn't want anyone give out your info or anything.

Andrew, I don't want to go to jail either and most of all I don't want to get a 'rep'. I am still trying to see an attorney about assignments and double closings in Louisiana, but I have been waiting two weeks now, so I thinking about going to another attorney or reminding the one I am waiting on. Andrew I would second what elix says. Always be prepared with an answer(bit of a problem for me because I am a terrible speaker Smiling ). What I think Dean means when he says, "Fake it till you make it", is have confidence in what you are doing and don't be like, "I think I can do this, maybe". Be honest and clear with the agent about what you are doing, cuz once any real estate professional says, "But I thought you were going to do this??", the relationship is gonna go into a pretty quick death spiral. I told a remax realtor in Houma, "I have no capital at all, to invest. I want to find other investors to work with and find deals to sell to them. She responded, "Ok, then you need to start building your buyers list before you start going after properties". So just be honest and you can tell by how they respond whether they are on board with you or not.
Make that deal happen!

RENinja

__________________

"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee


If I were you I would go to

If I were you I would go to another attorney. All attorneys don't know what they are talking about. Because you assigning the property is the same as buying it. Maybe they have their knowledge mixed up.


Yes and No

After researching this myself in California I found out its fine as long as you have money. You should ask the attorney again. He probably thought you were trying to do a "DRY" deal. A dry ABC CLOSE uses "C" to pay for "B" and then "B" pays "A". B keeps the difference (us). These type of deals are frowned upon by some title companies. To make the deal work you need to have the money. So instead of "B" using "C's" money to pay "A" you use your own "B's money" to pay "A" and then "C" pays you. This way is called a "WET" deal or wet abc transaction. The WET is legal every where. Just use Coastal Funding or Insiders Cash.

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