Is it ok to have the seller sign the "assignment agreement addendum" I will have with the end buyer?
Knowing many have wholesaled deals with the seller finding out about their profit from the Hud-1 settlement forum and going crazy mad over it, wouldn't it just be easier to be straight forward with the seller and let them know what you can do to help them, how I will get paid from it and have the seller sign the "assignment agreement addendum" I will have with the end buyer as proof that there ok with it.? Basically explaining that not only will the seller get their money but that I'll also get a profit "commission" for my help, making it a win win for everyone, I mean there going to see it anyway on the hud-1 settlement statement and I really don't want to do no double closings.
Your seller should not have to sign the assignment. They really shouldn't even see it. You aren't getting a commission. What you are talking about with how this is worded sounds more like acting like a realtor without a license. Using words like "commission". I would be careful.
The idea behind a wholesale is that you can close without a buyer if necessary. Through either HML, OMP, or your personal funds. I kind of view it like the property makes sense for me to buy yet if I can make a profit without having to touch it... GREAT!
I actually wholesaled a home that was wholesaled 3 more times. I wasn't mad at all. I made money so did everyone else down the line.
as proof that there ok with it.?
You don't need "proof" they are OK with it. Legally they don't have to be OK with it. They are legally bound to sell to you by virtue of your contract. Even if you have "Proof", if they change there mind then you are no better than if you did not have proof.
A more practical solution is your original contract should make it clear that is is assignable.
Keep in mind your seller may never know you are getting an assignment fee. The seller will look at the expenses on his (or her) side of the Hud-1. They really won't pay much attention to the fees the buyer pays. They probably won't even notice it. Now if you don't show up at settlement, that may raise eyebrows but if you are there probably a non issue.
There are so many papers to sign, most do not get much scrutiny.
This is not meant to be legal advice, just my understanding of the law.
I'm not going to use the word "commission" when stating that (though I was thinking of it but wasn't sure if I should) based on ur response on that hehe. I'm just wondering if it would be ok to do it this way because the seller is going to see on the hud-1 settlement how much profit I make off it anyway (if I use a title company), so why not just be upfront with them and have signed proof from them that there ok with it. Also i have no funds to purchase a property, so this will be wholesaling "as is where is", because i also don't have money for any down payment on any owner financing deal either. I'm basically learning how to do this with empty pockets. Not because I'm cheap but because I just don't have the money, unless I will a lottery scratch-off LOL.
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