Hello All,
I’m pretty sure I am out thinking myself here, but when I get a property under contract from a motivated seller…should I add my assignment fee to the negotiated sales price and advertise to an end buyer or disclose the negotiated sale price and assignment fee separately?
Thank you all in advance for your help in answering this question.
i personally use a contract that has the wording so that the assigment is seperate and disclosed as to how much im getting but some other choose to do it differantly it depends on your prefrence, your state laws, and the contract you use
Personally, I get the homowner to sign my assignment form when it’s blank…at the time they sign the contract. I explain to them that in the event I cannot purchase their home, I may have to find them a buyer who can, and that the assignment form is necessary for that purpose. I explain that it does not change the offer to them or the amount they will receive as per the contract, so most people don’t care and gladly sign it…then I fill out my fee when I negotiate it with the investor I’m flipping to.
why would you need to have the seller sign an assignment contract? Can’t you just use an assignment contract that is separate from the P&S contract to be used between yourself and a retailer?
If you deal with a title company that processes seperate HUD’s for the seller and the buyer, such that they are not seen by the other party, then having the seller sign the assignment form is not necessary. The seller will not see what you are getting…it’s really between you and the buyer anyway since the seller will get the amount agreed upon.
If the seller asks me about whether I will assign the contract, then I have them sign the form before I submit it…that way there is full disclosure, but I only do this on occasion…most times I just submit it directly to the title company.
I have written a post on the following thread that may be helpful in assignments.
http://www.reiclub.com/forums/index.php?board=24;action=display;threadid=18382&start=0