Assignment Fee
I am working a deal where a seller is willing to accept $35K for his property which will appraise for $70K. I will tie the property up using my LLC as the buyer. I also have a owner occupant buyer in place to purchase the property from me for $65K (all cash via bank loan). Would it be more advantageous for me to assign the contract and charge a hefty assignment fee or use a purchase option, double close and pocket the difference? Thanks for your input!
WOW! Thanks for all of the great input. Zero responses. I guess there is a such thing as a dumb question.
It will be difficult to get an assignment fee that large. Find out the lender's name and check on the seasoning issue. A simultaneous close is ideal.
[addsig]
Remraf,
I can help you work through this deal. If you want to flip properties with no hassle there are a few things you must know in order to profit and to protect yourself.
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:-D
R. Wilson
[addsig]
Thank you for helping me. I apologize for the stinky attitude. **Please See My Profile**
Remraf:
There are a couple ways to do this.. I would simply collect $5K-$10k, assign it and have your buyer close with a private investor or hard-money loan, carry back a 2nd for the difference... Then have you buyer go to their bank and have them refinance it with a good loan and get you paid back..
Or, if you can find an escrow company or attorney to do a double closing, that would work if you can find an attorney or escrow company to process it.
You could also just demand that they borrow the $35k from someone short-term to pay you off, and have them get a loan for the full purchase price and pay off the person the borrowed the money from via a 'repair bill'.
Or you could close it with a private investor loan, and immediately resell it to them.... "Flipper Clown"
If you get creative you can make it work..
Best Riches,
Jeff Adam