I just turned in my first Assignment of Contract on my first wholesale deal! But then I started thinking that maybe I got things in the wrong order. I turned in the original contract between me and the original seller to the Title on Wednesday with my $50 earnest money and $10 option fee. Then I went to my buyer and had them sign the Assignment contract with a non-refundable $1500 earnest money check made out to the title company. But now I’m thinking maybe I should of just had them pay the $5000 fee all at once to me -which they were willing to do, instead of taking it as earnest money to the Title Co? I was assuming that I was to get paid upon closing my full $5k but I’m thinking I could have gotten the $5k when I turned over the Assignment of Contract instead of waiting until closing. Did I do this in the right order? or could I have my money now instead of 10 days?
Congratulations on your first wholesale deal!
You should have had your buyer write his check to you as I generally try to get some percentage of my assignment fee upfront along with the return of my earnest money! How much money upfront depends on your market and the closing terms and conditions!
I probable would have taken the $5k plus $60 dollars upfront provided you clearly have written that your assignment fee is non refundable!
Maybe you could have, sometimes they feel a little uncomfortable, some will just write the check. I find that it is a half and half thing with people that feel funny about giving it all upfront, vs, people that just want to lead to the closing table, and that is fine with me also. I find you have to often take charge and lead people to what it is that they are looking for. house sold for the seller, cheap investment property for the buyer. Money for you. Win - Win for everybody.
Congrats on your deal. :beer