Assigning contract vs. double closing

Bird Dogs, Wholesaling
1 
 I have a property under contract now and have an end buyer on board. I am not rehabbing and flipping the property; rather I am trying to "sell the contract". I am looking for a 40k profit on this transaction, which the end buyer is aware and approved of. Clearly, I don't think it is reasonable to expect the buyer to pay a 40k cash assignment fee out of pocket. I was told that if one is expecting an assignment fee upwards of 5k then the only realistic option is to perform a double closing.
 I am a bit hesitant to utilize a double closing because I hear that it is complex and more expensive then a standard closing. I have two questions/thoughts:

  1. Has anybody performed a double closing in NY and if so can you recommend title companies/attorneys that you have used.

  2. I was thinking that a possible alternative would be to revise the original purchase contract and make the purchase price 35k higher then what it was. I would have a written agreement with the Seller that I would receive 35k from the proceeds of the sale. Then I would assign this newly revised contract to the end buyer for 5k.

My only concern is that I dont want the Seller to know what I am profitting off of the deal. By increasing the price he will obviously know what I am making. Does anybody have a better suggestion?

2

a wise old investor once told me that you cant get rich off one deal, and if you do, its robbery. sounds to me like you want to up the price to cover closing and so forth. i am always leery about a wholesale deal where the wholesaler is making more than 10k. are you leaving any room in there for your buyer? or even their buyer? maybe their buyer is not your concern, but smells like perch to me. and i dont know about ny but here in mi, if you double close you have to pay for the 1st one.

3

Ok. First thing first. Dont go to jail trying to hide your profit. That’s just insane.

If your buyer is cool with your nice profit, then you’re cool. If your seller is concerned about your profit, explain the situation however you like. If the seller isn’t profitting from the deal, do something real nice for them. Try to make it as much as a win-win situation for all.

BTW, nice work