What's Wrong With This Process?

General Real Estate Investing
1

Property appraises for $200,000 and seller nees ou so agrees to sell for $150,000

Investor A signs an “and/or assigns” contract for $150,000

Investor A assigns contract to Investor B for $200,000 and has seller sign a promisary note for difference of $50,000

Investor B signs contract with seller for $200,000

Investor B receives downpayment from Investor A and they sign a contract where the sales price equals $200,000 plus downpayment and Investor A and Investor B sign a wrap-around mortgage for that amount

Investor B makes monthly payment to the mortgage company

Invesstor B receives monthly payment from Investor A

2

If investor A has assigned the contract to Investor B, Investor A should be out of the loop once he has received his assignment fee.

I don’t see why Investor A needs to participate in a wraparound mortgage, which would ordinarily be given to the original seller because A has assigned his contract interest to B.

Perhaps you could clarify everyone’s interest at the end of the final step.