I am pretty new and working on my first deal. I got a house under contract. It needs work, as it was flooded during Hurricane Katrina.
I want to assign it.
As an earnest deposit, I used a promissory note.
here are my questions:
What happens to the earnest money after i assign the deal?
What’s the best way to assign a rehab deal like this?
Thank for your input.
I am new at this and it can be pretty daunting to go at it alone.
I am in the New Orleans, La area.
Typically, you take your buyers earnest money with the contract to a title company or attorney who will be handling the closing. As far as your assignment fee, try to get at least part of it upfront so your buyer has “skin” in the game.
Always get a deposit from the buyer equal to, or greater than the amount that you stand to lose if he/she backs out of the deal. Get than amount upfront and be sure that they know that their deposit is non refundable. As far as assigning goes just do it like any other deal. Assigning any deal is essentially the same regardless of what or where the home is.