Hi all-
What are some ways I can hide my assignment fee from my buyers? Would they work for all types of closings? I’d much rather be upfront with my buyers about my fee’s, putting the whole deal on the table for them to see…but I ran into one buyer who just could’nt take it on the chin, and the deal I assigned to him was gold. Thanx . :cool
I talked to one buyer locally and he said that he wouldn’t pay more than $2,000 for a wholesale deal no matter how good the deal. Now, that leads me to believe that there are WAY to many wholesalers in my area or this guy is a prick. Either way I told him have a nice day.
You could say, Dude I could have double closed and you would never know and it would cost you a lot more money. Herbster
You can do a double close. It will probably involve higher closing costs, but your end-buyer will never know what you paid for the property.
Why hide it. Investors who buy from wholesalers know that wholesalers charge assignment fees so why be discreet?
As long as you have a very good deal most investors don’t care how much an assignment fee is so as long as there is enough equity in the property for maximized profit.
wow. i guess he only asks $2000 more that he has in a rehab as well.
Here’s my spin on the question…do you just put it out there when you tell them the price, or do you tell them the price and then only tell them your fee if they ask?
On this deal I had it all out in the open for him. My buyer stood to make $33k-36k on the deal. I agree with u…I don’t like to hide my fee’s at all, I believe in being upfront. The assignment was for $5K…but he wined so much about the fee I start’d to buy him a bottle with some warm milk in it. He mention’d that a friend of his only pays half that for assignments.
He wont pay more than $2,000 for an assignment fee? Yeah, he sounds like a prick. I would just approach your buyer with the deal and show them the spread. Offer it to them for nothing more than 70 cents on the dollar. What you make shouldn’t matter as long as the deal is a winner for him. I wouldn’t even tell him up front unless he needed to know. Explain to them that you PAY to market for deals and spend the time negotiating with the seller. They are getting a great deal gift wrapped and dropped on their lap. Any real rehabber would love you for that.