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Updated almost 9 years ago on . Most recent reply

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Jerryll Noorden#2 Marketing Your Property Contributor
  • Flipper/Rehabber
  • Wilton, CT
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4,757
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Question on Assigning a contract

Jerryll Noorden#2 Marketing Your Property Contributor
  • Flipper/Rehabber
  • Wilton, CT
Posted

I keep reading that when you assign a contract everyone will know how much you are making.

I do not understand how.

Please tell me if this is valid.

Lets say I have a property under contract for 100K

I am selling the contract for a 14K fee. (thus the end cash buyer is paying 114K)

Assuming I don't care if the cash buyer knows how much I am making..Why can't I assign the contract to my cash buyer for 100K, and they give me 14K completely separate from the closing transaction?

So, the seller sells the house to the cash buyer via my contract for 100K. Buyer pays 100K for the house  and all fees are then associated with a 100K house purchase. The cash buyer pays me 14K for a finder's fee?

That way I do not have to pay more for double closing, and the buyer pays less on closing costs.

Is this logic sound at all?

Is there any reason the end cash buyer would object to doing it this way?

Is this legal?

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