I want to put a contract on a property from a FSOB that I found, and then assign it to someone else. I was going to add in $10,000 to the price. How do I set up this type a deal? The property is selling for $240,000 and I’m selling it for $250,000 is that enough profit or is that not enough for the effort?
that is not how u do it. u r not selling the house. if u mark it up, u have to have deed to it, by aquiring it somehow and then sell it. what u r wanting to do is assign the contract. when u assign a contract, u asign to another investor or another party for an assignment fee, but $10k is too much for that price. maybe u’ll get $500 or $1k, but that;s it.
I expect about 2 k for an assignment. It can or cannot be related to the value of the house. I just think it’s fair for the work I do. The actual assignment is very easy. I state the fee in the assignment terms and conditions of the assignment and the closing attorney sees I get paid at closing.
If you want a copy of the assigment letter contact me.
Really 10K is not to much of an assignment, it all depends on the FMV of the home. If your getting it under contract for $240K and looking to assign it for $250K and the house is worth about $275K, the buyer still has about 10% equity in the home at close so he is not overcharging.
Make sure in your purchase agreement with the seller you state your name/assignment, this way you can assign the contract if you wish and make sure you have your escape clauses in there just in case you fail to find someone to assign the contract to so you do not have to close on the home and lose your earnest deposit…