An Assignment Question most "Gurus" do not seem to answer

Bird Dogs, Wholesaling
1

When do you collect the assignment fee? At closing? Or when the assignment agreement is signed?

Thanks.

2

Typically at closing

http://www.reiclub.com/articles/quick-cash-wholesale-flip
http://www.reiclub.com/forums/index.php/topic,26077.0.html

3

Thanks Deeinaustin.

So when an assignment agreement is executed, the Assignee takes my place. So if for what ever reason, the Assignee backs out of the contract during the option period, or the Seller defaults on the contract, it’s the Assignee that gets the earnest money. Correct?

4

i’ve met many investors who collect at the assignment, not at the closing. read more here to see why:

http://www.reiclub.com/forums/index.php/topic,26077.0.html

5

Depends on the investors. I only have one that will pay me before the closing and I ask for him not to. I like to get the check from the title company. It is cleaner and better documented that way. Just my opinion.

6

if i was buying from a wholesaler i would not want to pay the fee till closing for the following reasons

1-what if there is a title issue and the deal cannot close … then I have to get my money back
2-what if the seller decides not to close

I would ask the buyer / assignee to place a deposit that is non refundable subject to clear title …

if he walks then you should get that

also … i would recommend that you set the closing date a few days before the actual closing date so that you can make sure that if there is an issue you can either close on the property yourself or get another buyer before closing .

7

Here’s what happened. I assigned the contract to another investor. We used an assignment agreement that the Title Company has seen/used in the past with their clients. We amended the contract to say that I would get paid the assignment fee at closing (the Assignee’s wanted it that way).

We also changed Title Companies. So I got my original earnest $ back, and the Assignees put up their own $ as earnest $.

Closing will be no later than mid-June.