I sign a contract with Seller A to buy their house for $100K. I assign the contract to Buyer B for $125K. How do I get the $25K assignment fee/equity?
Do I “close” on the assignment with Buyer B via a settlement attorney to net me the $25K which ends my involvement?
And then Seller A and Buyer B physically go to closing?
I am trying to figure out how folks do an assignment without paying closing costs and at what point do they get out of the transaction and leave matters to Seller A and Buyer B???
There is definately a way to do this because I almost did the same thing. Unfortunately for us, the original seller pulled her consent for the assignment so now we have to do a double closing. We bought the property and assigned it for a 20k profit. Its my understanding that you can assign it before closing and then walk away, its left up to the assignee and the original seller at that point. The other way to do it is to assign at closing. That way you show up, sign the assignment docs, and walk away with the assignment fee. Some assignees prefer this because they need the mortgage loan to afford the assignment fee. Either way, check with a good attorney who has experience with assignments, the documentation and title work can get very complicated.
Thanks a bunch! This makes sense as long as you can find an attorney with this kind of experience as you mentionned.