BiggerPockets

Well first off, you SHOULD know what your buyers are looking for. If you don't, then maybe you should spend some more time talking to them about what they are looking for.

Now not to say that they will want every deal you think fits their criteria, but that is exactly why you need to always be building your buyer's list.

So the process would go something like this:
1. Get a property under contract that you think is a good deal(this protects you so you don't need an NCND). If you have buyers set up already, then use their numbers to determine if its a good deal or not. Starting out, make sure you have some type of contingency in your contract to be able to back out of the contract if you need to.

2. Market the property to all of your current buyers that may be interested. If none of them are interested then begin a marketing campaign to get your property sold.

3. When you find someone that wants to buy it, have them give you earnest money towards the purchase price/assignment fee when you sign a contract/assignment with them.

Thank you, Ryan. How do I come up with the earnest money deposit if I put it under contract? These are a bit bigger numbers than I'm used to dealing with.

This is actually a little over $800,000. So $8,000 earnest money upfront before I present this to my buyer?

Personally I would be looking at probably $20,000 earnest money deposit on something like that. If they are playing at that level, it should be a drop in the bucket.

Do you have buyers at that level?

Assignment fees vary from market to market but would normally range from $3,000-7,000 on $50,000-$100,000 property.

On an $800,000 property I would be looking at making a significant chunk of profit for me or I wouldn't get involved ($50,000+). You aren't going to be finding many buyers at the level to wholesale it to, so you really need to make sure you know what you are doing before you jump in with something like that.

Originally posted by aptspecialty

How much is customary for an assignment fee?

Each deal is unique Carter. As long as this is a good deal, and I'm assuming it is, and the price including your fee and repair costs fit under your buyer's parameters, I would say for a deal in this range a fee between 35-60k is fair. If the deal is great you may be able to command more and double close so your end buyer will have no idea what you made.

Anyway you put it, a steal is a steal, and your end buyer should know this.

Thanks guys!! I appreciate all the help. I think I have a little more homework to do & see exactly which stategy will work best.