Assigning Contract, How To Profit On L/o
I've seen this question posted in another thread some time back, but no answer... I'm considering the option of just assigning my contract with the homeowner to the tenant when the time to purchase presents itself. This would prevent the need for 2 closings, thus saving my tenant monty. However, since most of my profit will come from the back end, how will I work this?
I never assign them, because the lenders I work with have to see 12 canceled checks (and they would be made out to me, not the Owner). To do an assignment, you would have to charge the T/B an assignment fee equal to your profit. Best to get some of this up-front in norefundable Option Consideration to help bridge the gap.