Just wanted to ask the experienced wholesalers a simple question on the how to of assignments.
When making an offer to a seller and then assigning to your buyer (or assigning your option if you used an option instead of a regular purchase agreement), how do you write that up for the closing? Is the assignment built into the price or is it a separate fee? Ie: offer seller 50K, write up a separate assignment form with the assignment fee of say, 7K, then offer the buyer 50K for house and 7K for fee, or do you write up a separate contract for 57K?
How about if you write an option? Same example, 50K to seller, 57K for buyer? How do you do this with one contract (2 sets of numbers)??
I appreciate any clarification. Have a great week all!
From my understanding, you would offer the 50k to seller in a Purchase agreement. Then from there, draw up an assignment contract with your end buyer (separate piece of paper) for 57k. Assignment contract has a line in it stating you intend on receiving an assignment fee of ____.
Eric, Generally speaking your not going to be able to go the assignment route where a mortgage is involved. They just won’t allow it on the HUD-1. If its an all Cash transaction then no problem. Just collect your fee assign to C and let the A seller and C end buyer go into contract. If one of the parties doesn’t like the size of your fee then you’ll have to double close A-B B-C. In this case I would release my contract for my profit at closing.
Yes,assignment is just a different piece of paper that says " heres an additional fee to the buyer".
You might be thinking of a double close where you change the price on the contract face.
In that case you have a purchase contract from the seller with 50k on it, then another selling contract for the same property with 57k on it. If your just starting out I wouldn’t recommend messing with double closings yet.
And in most area’s I’ve seen (as long as its a cash buyer) assigning an option is the same as assigning anything else.