When im assigning a contract to a investor how do i get payed at closing? do i have to do a double close or tell the title company im assign the contract? please let me know thanks…
NEVER do a double closing! You want to do a simultaneous closing. Before you work with a title company be sure you ask if they do those. On a double closing your seller and buyer see each other. On a simultaneous they come in and sign in different rooms, sometimes different times. The title company must know you are assigning the contract and have a copy of the assignment. If you let the title company know that you are doing this for a living and want to bring them more business they will generally help you in what ever way possible. Also, the title company will handle the checks, usually the buyer comes in with a cashiers check or the title company had them put it in escrow a few days before. The title company then cuts a cashiers check for the buyer and one for your when you close.
Thanks for your reply it was helpfull 
if im assigning my contract do i need a lwayer for closing? or just the seller and end buyer needs one?
Focusonmoney,
If you assign the contract, you are out of the loop unless the buyer defaults. You don’t even have to go to the closing if you have collected your money. The assignment is all the title company needs to put the correct name on the papers.
Wilson
ok now i get it…thanks
Double closes and Simultaneous closes are the same thing.
Blessings,
Steve
If you assign a contract, you can get paid at the time of assigning your deal using a simple assignment form, or you can get paid from funds at settlement.
If you do a simultaneous close or double close you will get paid at the time of settlement. I always recommend using experienced attorneys, they know the routine.
so when you do a double close do you have to pay for both closing or just one?
Closing costs have to be paid in both transactions. This is why assigning is better, but assigning isn’t always possible.
Blessings,
Steve
so if you are wholsesaling how do you get around paying the closing?.. does the end buyer pays for both closing?
That’s negotiable between you and your seller, as well as you and your buyer. You can have your seller pay when you buy, and your buyer pay when you sell if you choose.
Blessings,
Steve
oh ok that make sense…thanks
Steve… if im wholesaling a deal whats the necessary clauses i should have in the contract?
You don’t need any special clauses in your contract when wholesaling, just make sure that your contract is not “non-assignable”. Cross it out, or don’t include it at all.
Focus:
If you are in a state that uses an escrow company, I would recommend you open up escrow as an ‘assignment’, collect your fee and simply assign. After your escrow instructions are signed, you can simply tell your seller that you are going to be closing in your partners name for tax reasons. Like Steve mentioned, if you are using an attorney, find one that has been thru it before.
In terms of what special clauses you should have in your contract varies? Are you getting paid all of your ‘wholesale’ fee up front? Are you getting paid 50% at time of ‘assignment’ and then the rest when it closes? All this should be spelled out in your contract to protect yourself. If is always best to try to collect your fee upon ‘assignment’ however if this is not the case, you want it spelled out in your contract.
One of the keys to being a successful ‘wholesaler’ is by building relationships with other investor’s that you can trust and that can close!
Best Riches,
Jeff Adam
Where can I find the assignment contract and spell out the fees for buyer ?
Okay lets clear all of this mess up. Number one the good reason for assigning is that you DON’T have to have anything to do with the closing. It depends on how it is done. If you are dealing with a true INVESTOR, either they have cash, or they can get it in less than a week and put it directly in your hands, that way you assign, get your cash, and they deal with the closing . If you are dealing with an “investor” they usually get hard money b/c that takes longer to fund than private investors, in this cas you most likely would have to close, to get your money from the title agent, b/c the money for the assignee’s loan is wired to the Titlle Companies account. If you do have to close do a simeltaneous closing, find a title agent who knows what they are doing.
If you are assigning a contract, you do not have to do a double close even if you have to wait until closing to get paid.
On the HUD-1 settlement statement there is a line that will read “assignment fee” or something similar. That’s where your assignment fee is put and it’s a cost to the buyer (your assignee) and it’s marked paid to you.
Alot of investors, true or otherwise, like to have the assignment paid at closing because it is easily proven for tax purposes (it’s on the HUD).
Raj
Here’s some info for you to read over. A double closing is a simultaneous closing. This is necessary if you do not want your buyer to know how much you are getting for your assignment fee. This method requires you to pay for closing costs on both the buying from the owner and the selling to your investor. In doing a double closing, close both deals on different days, or at least one in the a.m. and the other in the afternoon. When you do a wholesale (assignment), your buyer will know your fee–if it’s not excessive, it doesn’t matter. But make sure you close with the buyer in the morning, and then with your seller in the afternoon. That way it doesn’t involve any of your own money; hence, – no money down.