Because the deal that I am writing is so low, it doesn’t make sense to use trans funding, so I should assign the contract to my end buyer, correct? How does that work out at closing?
Hi,
An assignment is exactly that, when you assign your contract your assignee becomes "Real Estate Connector" for purposes of fullfilling your contract. What ever closing date, terms and conditions exist in your contract becomes your assignee's contract and agreement by way of purchasing the contract from you by assignment!
If contract is for $10k with $500 earnest money and $9,500 due at closing in 27 days, your assignee is litterally taking a copy of your contract and fulfilling that contract verbatem.
If your earnest money was $500, you can get $1k, $2k, $3k down and balance at closing, or all your option fee upfront or anywhere in between, it is entirely negotiable.
At closing your assignment buyer brings the funds for your contract with closing cost’s and the balance of any monies owed to you for the assignment of your contract.
Good luck,
GR
Thanks Gold River! I wanna be just like you when I grow up! :biggrin
The value of the deal has nothing to do with whether you use transactional funding. Transactional Funding is only needed when the seller “mainly banks” won’t allow for you to assign the contract. A bank may agree to settle on a house for only $10,000, they still won’t let you assign it.