Assignmnet fee question?

Question

Hello,
     Ive been mind boggled about collecting my assignment fee. I definetly know an investor can pay your assignment fee to you straight out of his pockets, but I know there has to be times that the investor doesnt want to pay you money right out of his pockets. Please explain all the various strategies you can use to get your assignment fee, including a double closing? Thank You

Ryan Webber · Answer

The balance would be paid at closing.  It would normally show on the Hud 1 as an Assignment Fee on the Buyers side.

Account Closed · Answer

A couple of comments.

1. If they pay the assignment fee up front then they have the risk the deal will not close and yet they paid the fee. As Ryan said this is not the preferred route. Most investors take the view that you as the one assigning the deal should be at risk if the deal does not close.

2. Anything paid out of pocket could also be used as a way to hid information from other parties to the transaction. Hiding for good and legal reasons or hiding for illegal and fraud related reasons.

Minor point. You are not really getting a fee for services provided. You are not getting a fee for matching a buyer and seller. Both would likely be illegal. You are selling something you own (the contract) for a price. You are earning a profit from the sale of the asset. Fees tend to make people think they are earning money for brokering and that is an activity that requires a license.

John Corey

Jeff Fairchild · Answer

Ok so lets say the buyer pays you $500 up front and owes you the other $4,500 later.  How is that paid to you generally, through escrow?

Account Closed · Answer

Actually I do not care personally. I know what I know, etc.

The point is a public forum is not a very good place to have share inside jokes. People reading this thread only see the comment and lack context.

Hence you offend others without knowing you did it. They are less likely to respond to your questions as you have publicly written them off.

Humor when you can not see the audience's reaction is a tough thing to pull off.

John Corey

Mike C · Answer

Ok, you are taking things a little to personal now.... Me and Ryan have a little inside joke going on, because I have made other topics in this forum and he has been the only one to answer (not to mention some of my topics are up for days with no replies but his). I know that I am a newbie, but I think you took what I said the wrong way. Im apoligize if I offended you or anyonelse in any such way but its really not that serious, so chill out.

Account Closed · Answer

How not to win friend and influence people rr how to apply the laws of attraction in reverse (by insulting people you do not know)?

Ryan has great info. :clap:  :clap:  :clap:  Complement him all you want.

Claiming that no one else has answers does not motivate people who do know the answers you seek to respond. Maybe the problem is not that they lack answers. It could be who or how the question was posted.

As a general rule people are judged by how they behave and the company they keep. Bozos do not attract savvy investors. On other sites where the tools are organzied differently bozos end up on the ignore list so that people do not even see their posts. The Laws of Attraction and How to Win Friends and Influence People does work.

Be a bit more gentle when you make sweeping statements about a community. More so when the community has new members joining as your prior posts continue to get read.

Consider using the edit funnction (when possible) to remove offending items.

John Corey

Lenox Ramsey Jr · Answer

Ok this answers more questions I had about assignments.  I'm getting all questions answered without having to ask lol.

Ryan Webber · Answer

Oh Ace, don't be deceived.  There are many very real investors on here.  We all have our different specialties, and one of mine happens to be wholesaling.

Mike C · Answer

Thank You for all your replies Ryan. You must be the only "real" investor on this forum becuase you are the only one that has answers for my questions. But dont worry, Im gonna kepp the questions coming. :lol:

Ryan Webber · Answer

You know, Ace, all I hear from you is questions and more questions.  When are we going to get some answers out of you?  8)

Assignment fees and earnest money.

Investors don't ever WANT to pay you up front, BUT if the deal is good enough they WILL.  If its good enough, you will get them racing to your office to pay you.  Whether you are collecting your assignment fee on an assignment or earnest money on a double closing, by making them give you a significant amount of non-refundable money upfront it gives you and them security in the deal.

Now depending on how much the assignment fee is, you might ask only for a portion of it upfront, but I would always recommend getting at the bare minimum a $1000 up front.  If they don't have a grand, you probably shouldn't be selling to them anyway.

Remember this, price overcomes all objections.

If the deal is priced correctly there will be someone who will be glad to give you your entire assignment fee upfront.  They might be glad to give you the entire amount of the house upfront.  When you are selling deals, and I mean real deals, they will be banging down your door to get them.

And, Ace, if you didn't know, I was just kidding about the questions comment.  Keep 'em coming.  I'm awake and ready.  :superman: