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Author Topic: Collecting Assignment Fee thru the HUD1 at close  (Read 6213 times)

Offline yrush2000

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Collecting Assignment Fee thru the HUD1 at close
« on: April 19, 2007, 09:38:23 pm »
I know some guys are doing this.  How do you collect your assignment fee at the closing table thru the HUD1.    I have 2 deals pending where I am charging assignment fees of 30K but my buyer can not pay it on the front end and wants to add it to sale price and pay it out thru the closing funds.

I know some guys are doing this.  I was thinking of a marketing fee but his lender said NO the bank will not allow it even though realtors get it by with new construction.  Any thoughts?

Offline bhen

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Re: Collecting Assignment Fee thru the HUD1 at close
« Reply #1 on: April 19, 2007, 09:43:54 pm »
Check the forum to the left that says foreclosure and shortsales, i just saw someone mention that. the name was jds or something. I think they mentioned double closing as an option

Offline varian23

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Re: Collecting Assignment Fee thru the HUD1 at close
« Reply #2 on: April 21, 2007, 11:06:21 am »
If you are using a conventional lender to close the deal - it's not likely it will work.  A double closing would be an order if using conventional - but then that's a whole other issue. Most lenders do not like assignments or any 3rd party fees (reflected on the HUD).  They look at what everyone else is making on the deal vs. themselves.  Too many fees could kill a deal - especially wholesale deals - they can even limit how much an agent makes.  Assignments are mostly good with hard money.  I would suggest either negociating the fee to push the deal through, lower the fee with the buyer and have them pay outside of closing and convince the buyer to go hard money.  Unless your sale price is in the millions - a 30k assignment fee is a bit uncommon.  Good luck :) 
« Last Edit: April 21, 2007, 11:08:17 am by varian23 »

Offline yrush2000

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Re: Collecting Assignment Fee thru the HUD1 at close
« Reply #3 on: April 21, 2007, 09:35:53 pm »
I have been trying to avoid buying this so I do not have to use my money or go HML and cut profits..  As for the high fee..

Home under contract for 95K.  Need about 60K in rehab..
Comps after rehab will be 340-360K if buyer adds 4th bedroom and bathroom like I suggest.  Otherwise 300K.

MY fee is high b/c of the deal... 95+60+30=185K.  Sell for 350K = 165K profit before holding cost.  Be smart, rehab in 1month, figure 3months holding cost and sell for 15% below market value and you can easily make 100K profit..

I just have plate full and not looking to do a rehab right now.  Want to flip it.  I offered a partnership with him, pay me $10K and then give me 30K from the sale since i have to wait 3-6months for it to sell depending on experience and want money for that time frame..

Buyer not using HML because he is out of state and alot of HML shy from out of town rehabbers with little experience..

Offline Roger J

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Re: Collecting Assignment Fee thru the HUD1 at close
« Reply #4 on: April 22, 2007, 08:19:35 am »
Geez, quit making it so darn hard!

Simply put it in as an assignment fee and move on.  Ask the lender before closing (way before) if they are going to have a problem with it.  IF they are, ask THEM how they want it listed.  Most likely it will be listed as a consultant fee.  IF the numbers are valid, the buyer is a good risk (good credit) there won't be a problem.

Raj
www.HickoryNCHomes.com Search for all Hickory NC Homes for Sale.

Offline yrush2000

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Re: Collecting Assignment Fee thru the HUD1 at close
« Reply #5 on: April 22, 2007, 08:42:18 am »
Raj
thanks..but his bank already said no to paying a commission to my company is it is not a real estate firm.  I think he is going thru First Mangnus for the financing.

In your opinion, how ofter will a conventional bank, not HML allow a consultation fee to be paid out to another company in the transaction.

Offline Roger J

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Re: Collecting Assignment Fee thru the HUD1 at close
« Reply #6 on: April 24, 2007, 10:24:30 am »
You're right.  You can't get a  commission because you're not a real estate agent.  However, consultation fee is perfectly legal and valid.

I can't give you an estimate on how often a bank will allow it.  I've never had a problem, but then, I've never had a $30K fee either.

I'd say the simplest option if you're having trouble with the lender is to simply put a mechanic's lien against the property for the balance owed.

Raj
www.HickoryNCHomes.com Search for all Hickory NC Homes for Sale.

 




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