Hello! I’m new to wholesaling and I may have my first deal this week. This will be a contract that I’m assigning to a buyer from a private seller. I was wondering how do many of you collect your assignment fee at a double closing. Do you disclose your fee to buyer prior to closing? Do you have the buyer provide two money orders? One for the home purchase and one for your assignment fee? Please advise.
Thanks
If you are assigning the deal then there will be no need to do a double closing. A double closing is done when it is not possible to do an assignment of contract (like most REOs).
If you assign the contract, then yes, your buyer is going to know how much you are making as they are going to have to fill out an assignment of contract agreement which will state your fee.
The buyer will bring certified funds to closing in the amount of the purchase price on the contract + your assignment fee. The title company will then cut you a check for your fee.
Steph
BigText78
Here we go again. If you are doing a real double close there is no assignment fee. Your fee is built into the b-c closing via the increase in price between a-b and the b-c.
If your merely assigning the contract, the escrow is going to be only between your end buyer and the seller, and a demand for your fee in escrow covered by your assignment contract.