I located a property that I got under contract for $220,000. It needs about $175,000 in rehab and will be worth $600,000. I have a cash buyer who I can assign the contract to. What should I charge for an assignment fee. What should I charge on a general basis percentage wise? What is fair?
whatever will putcash in your pocket!!!
If it were me…I would try for about 25K…butwouldtake whatever I could get… I wont elabriate,since my spacebar is about to drive menuts.
Thanks, so you would basically charge 10% of what my purchase price is? Is that standard, or am I suppose to take this on a case by case situation
Howdy Deepvoice 75:
There is nothing standard in the real estate business especially when it comes to fees and commissions. If Realtors talk of standard commissions they are subject to losing their license. The Federal Trade Commission frowns upon fee and price fixing. If you ask for that amount be prepaired to take less. The rehab investor has a lot of expenses and risk in buying and holding and reselling and will be trying to get as good a deal as possible. If there is a way to get the property under contract and resell it at a higher price and do a double closing you will have a better chance making a larger profit
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737