When I assign a contract over to an investor, does he immediately know what I am making off the deal?
If the investor pays you up front for an assignment, what if its like 10K, wouldn’t he think you are making to much on the deal? is it better to get money at closing?
I don’t think they would care if it was like 5k or less, but 10k would make them think about it in my opinion…any thoughts?
To answer your first question, yes if you assign your contract, the investor knows how much you are getting because it is out in the open.
Whether they care how much your fee is will depend on the deal. For example, if the deal stands to profit them 15K, you probably aren’t going to get anyone to pay a 10K assignment fee. If they stand to profit 50K, then you probably can get someone to pay you 10K.
Excellent point Tom, in my experience, I draw the cut off at $5k for assigning a contract. Anything more and most investors have a built in greed mechanism that is triggered by it. There definitely is a balance where the profits for an investor might be $50k so paying $10k isn’t that much. ;D
My rule of thumb is anything $5k and under assign it without question. Anything over $5k, write up a new contract and double close the deal. When double closing a deal make sure to call your title company ahead of time to ensure they are comfortable with a double close. In my short experience, being professional and not giving up your profits, but being confident in the deal helps build trust and a relationship with someone who will potentially come back to you for more deals.
I’m just starting out. Can you give me some advice on how to locate some of the homeowner if they don’t live in the property anymore. And you have ask the neighbor do they have any info. on how to locate them and they don’t have the answer.
Please help.
Annette
I would say one of the best ways to contact the owner of the property if the don’t live there and the neighbors don’t have any info is to mail them a letter. 9 times out of 10 they have forwarded there mail to there current address.
just starting out - quick ? , I have gone a different route
perhaps because there is something a little unclear to me on assigning a contract is - and please forgive me if i am making no sence but - i would have to find a good lender preferably 1 that works with investors to say i qualify for a property (making sure that in the contract that something is “subject to” ) and then - would find an investor whom is interested?
is that it in a nutshell or did i drop the ball
Having a lender that pre-approves you is a good thing. You want to have that as a back-up option if you can’t find a investor to flip the property to.
i guess with that being said my theory i think is right
and you are so right, i have spent much of these last few days trying to find the right loan officer, ones thats experienced but not too busy for me to do their homework - I thank you
Why? Isn’t that why contracts have contengencies, like inspection, ect ect. So you can back out, if you can’t find a buyer. Well, that is the way I deal with mine atleast.