BiggerPockets

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:

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.

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

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.

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?