Question about Assignments...

I’m new to real estate investing. Someone wants to assign a property to me that he bought for 15K - ARV about 65K - requires about 25K in rehab. A decent deal. But he wants to charge me 5K for the assignment. I’m thinking 33% of the initial purchase price is pretty steep. Am I being ripped off, or is this an appropriate fee for this property? Any recommendations would be much appreciated.

The numbers still work

$65K x .7 = 45,500 - 25,000 (rehab) = 20,500.

So if you pay $15K and add his $5K you’re at $20K.

A $25,000 rehab on a $65,000 property is really high,
it’s almost 40% of the ARV. That’s a big rehab on a little property.



I’m thinking something more in line with $3K assignment fee…