Best Way To Get Paid On This Deal
Hey gang,
Got a newbie question. I have the option to buy two duplexes at a yet to be determined price. I have found a potential buyer and he will write an offer tomorrow.
So, say owner accepts offer. Should I then write a purchase aggreement at that price with my name, and then assign it to buyer at closing, or should I just simply get buyer to sign a promissary note for my fee to be disbursed at closing?
This is my second wholesaling deal. The first I went the promissary note route, but I had great trust in the buyer.
Not the case here.
Second question, does the tax liability change depending on the contract I settle on (prommissary or PA)?
I would appreciate any opinions/ideas on this. I suppose I should get an attorney's input, just don't have one on my team yet.
Besides, I got you guys, right? Right?
thanks,
john 8-) [ Edited by rainforrester on Date 03/20/2004 ]
Maybe I should simplify my question. Heck maybe I should be in a different forum, but here goes..
When wholsaling properties, is there any other way to ensure assignment fee other than putting purchase agreement into my name and then assigning at closing?
just a bit nervous about impending deal and want to do it right..
thanks,
John :-o
This is how I do most of my deals.
I run across a lot of deals in my loss mitigation/foreclosure consulting business and there is no way I can do every deal myself.
I now have a large pool of investors to buy my deals and pay me a fee. My formula is 1% of the fair market value of the property ($500 minimum) + $180 an hour for my due diligence, deal packaging and lender negotiations.
This keeps me well below real estate commission prices and not a single investor has balked at my price.
Also of interest, I have never had to have a contract to collect my fee. It has all been verbal and over the phone, so far. The investors agree, in advance, to pay my fee and it is either payed to me out of escrow or by the investor directly.
I could get more money assigning coantracts to investors and do on occasion but this keeps everybody happy and coming backl for more,
C- :-o