So, lets say I have an option to purchase say property at X amount. And I have an investor I can assign my option to an Investor. Im having the appraisal reviewed and the Investor can get the home from me for about 70% FMV. What would be a nice amount to ask? The home is about 1 mill. So I am def having the appraisal double checked. This could be my one deal to really spark my career.
Also, how much is “too” much of a fee?
What’s so wonderful is that your fee can be whatever the traffic will allow. As a general rule of thumb, for a 1MM house, @ 70% cost to the investor, you should ask for at least 30% of the profit ($30,000 X 30%) = $9000. But if you do all the leg work and paperwork, you may want to ask for half, $15,000.
This is only an opinion. There are so many factors that come into play, the negotiation process is very tenuous and different every time. A good thing is to partner with someone you really trust and with whom you have an ogoing business relationship.
Good luck!!
Carol B.
Profit is $300k, sounds like a great deal.