Hi Everyone,
I am new to real estate in every sense of the word. I am at the point now where I am ready to execute my first deal and am excited to get going. One concern i have is how to ask for assignment fee upfront.
Is this something that is commonly asked for or just tacky and bad form.
Another question i have is this; if an own has a property listed through an agent, can i still reach out to the owner and not violate any code of conduct or laws?
If there is anyone in the Phoenix AZ area, id like to network with you. Leave me a comment and any help is appreciated.
I have never thought of asking for my assignment fee in advance. The problem I foresee is that sometimes the deals don’t go thru,
These pesky liens can pop up destroying your deals, and you don’t know about them till all contracts are signed and your deep in sh-t, I mean escrow.
All my bird dogs wud luv to have their fee in advance, everybody wud luv to get paid in advance, I’m not saying it can’t be done, not realistic though.
I often contact owners that have their houses listed with agents and I don’t know its listed till the homeowner tells me or they have the agent call me. I tell the owners to get rid of the agent and I’ll buy the house. I tell the agent a price I will pay and to present it to the seller.
If you want to find me discounted fixers in AZ, I’ll walk you thru the process with a 50/50 split and turn you into a wholesaling machine.
Rando
Sent you an email Randy
I usually ask for some money at the point when I sign over and assign the deal. The remainder of the assignment fee is due after successful closing. The up front payment is refundable if the house doesn’t close due to issues that are out of the buyer’s control.
I want to make sure the buyer is committed, so I want them to put up some money.
Less often the buyer will pay the whole assignment fee to my lawyer at the point when I sign over and assign the deal. I’ll do this for a larger assignment fee and for a buyer that I don’t know very well.
Yeah, I’ll get a deposit or hand money from the buyer prior to closing, but it’s made out to the closing company typically. Then I get paid at closing.
I do a deposit on the assignment fee with the remainder due at closing. It seems to work out for me. The one thing you want to consider in that is how much will show up on the settlement statement. The more the balance due on the assignment fee, the more the seller will see on the statement.