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Author Topic: Should I share info about how much my assignment fee is for?  (Read 3318 times)

Offline pixie42

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I have my first wholesale deal under contract, shared the info about what the cash offer is and recieved a call back last night from another investor who wanted to know how much was my assignment fee? Should I have revealed this info, because I didn't feel comfortable sharing this with the other wholesaler?

Offline Bay Area Brian

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Re: Should I share info about how much my assignment fee is for?
« Reply #1 on: June 22, 2011, 12:39:23 pm »
Pixie42

With new to me wholesalers, those I don't have a well established relationship with I don't give out that Information. In the early years If they saw a larger amount they or the buyer often tried to get a piece of my pie and I wasn't offering them any of it.

The deal stands on it's own, and if a down the line wholesaler wants to add too much to the deal and blow it with his buyer so be it. My price to other wholesalers is my price to my buyers, and there is room for them if they don't get greedy. And a down the line wholesaler can't tell the end buyer something he doesn't know and get their greed glands juiced up.

My response is I'm offering this a X dollars, that is what matters, it doesn't matter if I'm getting only a dollar or a million dollars, it only matters that it is a good deal for the buyer, and that you are getting paid a fair and reasonable amount that you set up in your mark-up for presenting it to your buyers. 


With my established wholesalers I will often say offer it to your buyers at my price and I will pay a  x dollar split from my assignment fee. Or in some cases a 50-50 split. But in most cases I just e-mail them all with my price and they can add what they want.

Offline AJ290

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Re: Should I share info about how much my assignment fee is for?
« Reply #2 on: June 23, 2011, 04:08:40 pm »
Pixie, Brian is correct.  The deal stands on itself and if the numbers work, that should be all that matters to your buyer.
Two favorite sites:  this one, and
The Naked Investor

Offline nsu1997

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Re: Should I share info about how much my assignment fee is for?
« Reply #3 on: June 23, 2011, 06:07:31 pm »
I agree with others on this. One way to address this with him is to answer his question with a question. In response to him I'd say something like, "are you saying the numbers don't work as-is?" or something along those lines. On the other hand, he's another wholesaler (not a cash buyer) so actually there's really no harm in disclosing it (although you certainly don't have to).

As far as other wholesalers getting in on my deals I do what Bay Area Brian does for his established wholesalers but I simply do that for all of them. I used to tell them to tack on their fee on top of my price but what I do now is automatically build a finder fee INTO my asking price. I do it this way so that there is always "deal integrity." I've never got to worry about a potential buyer getting 4 different emails from 4 different wholesalers advertising the SAME property at 4 different prices.

Offline pixie42

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Re: Should I share info about how much my assignment fee is for?
« Reply #4 on: June 25, 2011, 10:43:13 am »
Thanks everyone, I really didn't feel comfortable about sharing this info with another wholesaler, who was trying to tack on his fee for the property. It was already low enough and I just want to close? The buyer sent out his evaluator to look at the property and totally underbidded the price. Now I have no end buyers. For future reference I will consider tacking that finders fee into the property as suggested. My only problem now is finding more buyers in this market. Can anyone possibly share other websites that I can market this opportunity at?
All other suggestions will be considered.
I have marketed it on craiglist, band-it signs, other websites and still got no hits? What could I be doing wrong? Please help :shocked

Offline nsu1997

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Re: Should I share info about how much my assignment fee is for?
« Reply #5 on: June 25, 2011, 01:50:47 pm »
Don't expect much from online marketing. What are you putting on the bandit signs, and are they handwritten? They never fail to work if done correctly.

Have you considered putting it on the MLS?

Offline oldmaninvestor

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Re: Should I share info about how much my assignment fee is for?
« Reply #6 on: June 25, 2011, 03:29:17 pm »
Have you tried back tracking some other recently sold properties to find the investors who bought those?

Have you called on landlords in your area?


Offline TheTitleGuy

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Re: Should I share info about how much my assignment fee is for?
« Reply #7 on: August 30, 2011, 08:19:14 pm »
If you roll it into your asking price, you can advertise it with a _% seller's commission, and actually get the realtors to bring you buyers. I've tried it both ways, and realtors for the most part do not understand "tack your fee on". It works when you're offering a seller's commission, though. Just my experience.

Offline xpandergt

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Re: Should I share info about how much my assignment fee is for?
« Reply #8 on: September 02, 2011, 09:00:00 pm »
Some buyers are really TIGHT with their wallets though. In their warped way of thinking, it's ok for them to make a profit, but it's almost criminal in their eyes that you make a few dollars for locking up the property for them. Some will try their best to talk your assignment fee down. Don't be a pig on your fees though, because pigs get slaughtered, and you don't want to develop a reputation as such. In the end it does come down to the numbers. If the profit margin or cash flow is what the buyer wants, then you shouldn't have a problem.
Bulls make money. Bears make money. Pigs get slaughtered!

 




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