As real estate investors what would you be comfortable with in paying a wholesaler for an assignment of contract deal??
The major variables are:
Price of home
Price of repairs
Ease of the deal
If someone brought me a deal that I could make a quick 50k on my end, why wouldn’t I pay them up to $20k so long as the price didn’t have me leaving my a$$ out on the line.
I’ve done assignment deals from $5k up to nearly $50k over the years. The important issue here is a balance and to leave money on the table for the next guy. If your negotiating abilities gain you a real big discount, you can mark up the assignment fee. Keep that balanced with enough of a discount to entice your buyer/investor to buy with the opportunity to make a reasonable profit for his time and effort in selling to an owner/occupant at a price that would still leave something of value to that end user.
Hope that helps.
Good to meet you…
I would suggest keeping the really good equity deals for yourself… The deal is the hard part finding the money is the easy part…
As for a bench mark… You should see 10% of net… BTW make the investor pay you at assignment not a their close… Most wont want to but if you sell the deal and they screw it up why should you be harmed?
Michael, do you mean 10% of net profit in the deal? Whats the thinking on the 2 sides of the spectrum. If I have a lower end home with 15k in profit after all said and done, expect 1,500 assignment fee? I have little experience in RE, but isnt that a little low? (lol I only ask because I had one w about 16k in profit and the more experienced partner/mentor asked for 2,500 for me, which was negotiated down to 2,200, which I thought was low too? or am i off base)
On the other end if its a high value house, w 60k, I would think an investor would be happy taking 40 even if it meant paying a wholesaler 20, because that is 40 they wouldnt have otherwise? Or is that not so?