Cash Only?
When you are assigning a contract or doing a double closing on a property. Does your buyer (assignee of contract) have to use cash for the entire amount of the property? Or do they have to have cash for my fee and get a traditional loan for the rest of the amount?
You as the wholesaler would prefer cash of course to pay your fee and to buy the property but in most cases you have left enough time on the contract so the investor can get traditional financing in place. That buyer should work with a mortgage broker or bank that does not have a problem with assigned contracts.
[addsig]
So let me make sure I am understanding this right. Some lenders are okey with contract assignment and they will finance the full amount including my assignment fee? Or does the investor have to pay the assignment fee in cash and get the rest of the money in a traditional loan.
I have yet to find a lender that will finance an assignment fee.
[addsig]
Thanks for all the replies.
- DarvinM
I only do assignments to people who are paying cash.