Can I include my fee in the purchase price of the home on a L/O Assignment? if so, how would I structure the deal to get my fee upfront?
I structure the figures to help the buyer actually purchase, so my fee, the Assignment Fee, will reflect towards the down payment at the time of purchase.
Sounds like you are talking about a Cooperative Assignment. Check out Carbonare’s site for all things regarding CA’s.
How do you structure this to reflex a down payment and still get your assignment fee?
The Option to Purchase I use states that the Option Consideration will be applied to the purchase price.
Don’t get too bogged down in the minutia if you are just trying to start learning, just get a quick feel for the flow of things.
If you are JUST trying to learn about CA’s you can make something complicated that is really very easy, such as rent credits being seller concessions etc.
In order for the option fee to apply toward down payment the lender will want to see that the money was paid directly from the buyer to the owner. If you can work that out and still make money go for it, but if you’re not the owner then that check will not be made out to you.
The simple solution (and the solution Carbonare teaches) is to have the option fee apply towards the purchase price. That check is made out to you in exchange for the assignment of the lease option.
In other words, the seller wants 200,000. I assign my LO to the TB for, say, 205,000 and the 5000 is my assignment fee? Thanks to all of you for answering my questions.
Yep, that’s correct!