Assignment Fees To Hud-1
If some one ties up a property with a real estate contract and would like to assign the contract. It is easy to accept assignment fees outside of closing, but how can an investor, who is not a RE agent, get the assignment fee financed, i.e. added to the hud statement.
I've heard you coud do a double closing, but it appears one would loose quite a bit in the closing costs of both transactions. I would also assume that the lender would have to allow for no seasoning of tite.
Any input wold be greatly appreciated. Perhaps if another investor does not want to pay the assignment upfront, perhaps they should be looking into other avenues?
Thanks!
First of all, you should open up escrow as an 'assignment' then 'assign' your escrow and collect your fee. One way that you could get the assignment fee financed is as follows:
-You the wholesaler could carry-back a 2nd Trust Deed for the amount of the wholesale fee. Try to get at least some of your wholesale fee on the front-end.
-Your second option is to have your wholesale buyer get a loan from a private investor and have their interest protected by a 2nd Trust Deed.
If you get creative you can make it happen. For me, carrying back a 2nd and getting paid on the back-end has worked well, and of course you can also charge 12% interest and a little bit more for your wholesale fee for doing this.
Best Riches,
Jeff Adam
[addsig]
1. What does a 2nd Trust Deed entail?
2. When can you collect the funds fromthe deed, at the closing?
[ Edited by jay2727 on Date 08/08/2004 ]
Tom, thank you for the input. Great advice!! How does one find hard money lender's to offer the 100% financing? What should you be looking for in a hard money lender?
Thanks again for your great advice!!
Typically hard-money lenders will lend you up to 65% LTV on your deals. Once you have built up a repore, I have seen them go as high as 70%. So if you are buying right, you can get the 100% financing.
Example: You purchase a house for $60 worth $100k. They will lend you the $60k plus loan cost as long as it does not exceed $65k.
Best Riches,
Jeff Adam
[addsig]
Jeff,
As previously asked, how or what is the best way to locate hard money lenders or private lenders?
thanks for any information