What exactly does “release of interest” mean? I’m working on wholesaling a deal right now where the owner is willing to release interest of his property and wants 10k cash. The property is worth about 120-130k and is currently cashflowing 1250 a month with stable rentors. The owner owes about 90k. So my question is would I be able to wholesale this property for a 2-3k assignment fee with a “release of interest” ? I very much appreciate any input on the matter.
If the owner is on deed he can’t simply release interest. The owner and you have to do a closing or sub2. Most likely this guy is wholesaling to you and thats what you want to do. Why even do this for a measly 2-3K? Something is up here amigo, be careful and get a lawyer. Herbster
Sometimes a wholesaler has the title clouded via an affidavit of memorandum or some other document and will use a release of equitable interest in order for a seller to go around you and sell it to someone else. The wholesaler will charge a fee usually the same amount as their assignment fee to release it. Once released the wholesaler no longer has equitable interest in the property and walks away with some dough.