1. Yes, you prefer it to be paid up front of course and you make it non-refundable unless the seller breaks the contract.
2. If you are assigning a contract, the investor will know what you are making, so yes, be up front about it. If you want to hide how much you are making you can do a double close or sometimes referred to as a simultaneous close.
3. Go to your local real estate investor assoc and ask around, you should be able to locate one by looking at the groups tab on this website.
4. Some people might do this but it is not mandatory.
Quote:
On 2005-10-05 08:57, ray_higdon wrote:
1. Yes, you prefer it to be paid up front of course and you make it non-refundable unless the seller breaks the contract.
2. If you are assigning a contract, the investor will know what you are making, so yes, be up front about it. If you want to hide how much you are making you can do a double close or sometimes referred to as a simultaneous close.
3. Go to your local real estate investor assoc and ask around, you should be able to locate one by looking at the groups tab on this website.
4. Some people might do this but it is not mandatory.
With all of the assignments i have done i have always made it sound like i am selling it and ask tem if they would be interested in a propery at this price. when they say yes i tell them about the assignment and i tell them that this makes more sense for the both of us. I tell them that i can do a double close if they do not like that. So farm it has been fine every time. I get the assignment and i have it signed and notarized with them and then they add it to their purchase price and we get paid at closing. I do not have to go to the closings but i like to pick up my checks. I have done assignments for upwards of 25,000. there is money to be made doing this.
How does the escrow service or attorney get paid? Does the buyer pay them to close or is it the seller? Also, If I gave the seller an earnest money, how would I go by getting that back if I assigned my contract? Thanks![ Edited by pinoydarv on Date 10/05/2005 ]
You charge your assignment fee based on how good the deal is. I have seen assignments on apt complexes at 200k or SFH at $1,000. I try not to do them for less than $3k if I can help it.
[addsig]
When doing an assignment of contract, obviously you need the assignment contract but do I as the assignee need to draw up another contract for the new purchase price with the new buyer?
Example: I have property under contract for 100k
and assign the contract to another buyer for 110k we would do the assignment of contract but would we have to draw up another contract for purchase for the new price, 110k, with the new buyer.
Would we have the closing agent draw up these contracts?
Quote:
On 2005-10-07 10:25, ray_higdon wrote:
You charge your assignment fee based on how good the deal is. I have seen assignments on apt complexes at 200k or SFH at $1,000. I try not to do them for less than $3k if I can help it.
One last question...
When doing an assignment of contract, obviously you need the assignment contract but do I as the assignee need to draw up another contract for the new purchase price with the new buyer?
Example: I have property under contract for 100k
and assign the contract to another buyer for 110k we would do the assignment of contract but would we have to draw up another contract for purchase for the new price, 110k, with the new buyer.
Would we have the closing agent draw up these contracts?
So it seems that the buyer will know how much you are making on wholesaling the deal. Can that not cause a problem? The buyer may decide to bypass you and go straight to the seller.
So it seems that the buyer will know how much you are making on wholesaling the deal. Can that not cause a problem? The buyer may decide to bypass you and go straight to the seller.
You can cloud the title by recording a notorized copy of the contract with the clerk of courts, or, the investor that did cut your throat would certainly have a hard time working with any other investors in town once you spread the word of his ethical nature
[addsig]
1. Yes, you prefer it to be paid up front of course and you make it non-refundable unless the seller breaks the contract.
2. If you are assigning a contract, the investor will know what you are making, so yes, be up front about it. If you want to hide how much you are making you can do a double close or sometimes referred to as a simultaneous close.
3. Go to your local real estate investor assoc and ask around, you should be able to locate one by looking at the groups tab on this website.
4. Some people might do this but it is not mandatory.
Hope this helps
[addsig]
Quote:
On 2005-10-05 08:57, ray_higdon wrote:
1. Yes, you prefer it to be paid up front of course and you make it non-refundable unless the seller breaks the contract.
2. If you are assigning a contract, the investor will know what you are making, so yes, be up front about it. If you want to hide how much you are making you can do a double close or sometimes referred to as a simultaneous close.
3. Go to your local real estate investor assoc and ask around, you should be able to locate one by looking at the groups tab on this website.
4. Some people might do this but it is not mandatory.
Hope this helps
Thanks Ray!
With all of the assignments i have done i have always made it sound like i am selling it and ask tem if they would be interested in a propery at this price. when they say yes i tell them about the assignment and i tell them that this makes more sense for the both of us. I tell them that i can do a double close if they do not like that. So farm it has been fine every time. I get the assignment and i have it signed and notarized with them and then they add it to their purchase price and we get paid at closing. I do not have to go to the closings but i like to pick up my checks. I have done assignments for upwards of 25,000. there is money to be made doing this.
Ryan
How does the escrow service or attorney get paid? Does the buyer pay them to close or is it the seller? Also, If I gave the seller an earnest money, how would I go by getting that back if I assigned my contract? Thanks![ Edited by pinoydarv on Date 10/05/2005 ]
RyanD
How do you decide how much to charge for your assignment fee? Do you charge a percentage of the sales price?
You charge your assignment fee based on how good the deal is. I have seen assignments on apt complexes at 200k or SFH at $1,000. I try not to do them for less than $3k if I can help it.
[addsig]
One last question...
When doing an assignment of contract, obviously you need the assignment contract but do I as the assignee need to draw up another contract for the new purchase price with the new buyer?
Example: I have property under contract for 100k
and assign the contract to another buyer for 110k we would do the assignment of contract but would we have to draw up another contract for purchase for the new price, 110k, with the new buyer.
Would we have the closing agent draw up these contracts?
Thanks
Quote:
On 2005-10-07 10:25, ray_higdon wrote:
You charge your assignment fee based on how good the deal is. I have seen assignments on apt complexes at 200k or SFH at $1,000. I try not to do them for less than $3k if I can help it.
One last question...
When doing an assignment of contract, obviously you need the assignment contract but do I as the assignee need to draw up another contract for the new purchase price with the new buyer?
Example: I have property under contract for 100k
and assign the contract to another buyer for 110k we would do the assignment of contract but would we have to draw up another contract for purchase for the new price, 110k, with the new buyer.
Would we have the closing agent draw up these contracts?
Thanks
Helpful thread for me right now. Thanks to all involved!
So it seems that the buyer will know how much you are making on wholesaling the deal. Can that not cause a problem? The buyer may decide to bypass you and go straight to the seller.
So it seems that the buyer will know how much you are making on wholesaling the deal. Can that not cause a problem? The buyer may decide to bypass you and go straight to the seller.
You can cloud the title by recording a notorized copy of the contract with the clerk of courts, or, the investor that did cut your throat would certainly have a hard time working with any other investors in town once you spread the word of his ethical nature
[addsig]