Skip to content
Buying & Selling Real Estate

User Stats

15
Posts
3
Votes
Scott Tucker
Pro Member
  • Investor
  • Wilmington, DE
3
Votes |
15
Posts

Financing Wholesaler Assignment Fee

Scott Tucker
Pro Member
  • Investor
  • Wilmington, DE
Posted Aug 2 2019, 14:54

I have the opportunity to purchase a property from a wholesaler who won the property at Auction.  The wholesaler wants to assign the contract before the auction date closes.  Because this property has a decent amount of built in equity and the court allows financing of the property, I am looking into alternative ways of structuring the deal instead of the straight pay the wholesale fee and then put a separate down payment on the property.  One thought is to structure the deal so that the wholesale fee is effectively considered part of the purchase price and therefore can be included in the amount financed?  I would expect to pay the wholesaler a slightly higher fee for the delay in payment.  Based on my calculations this approach, even with the higher wholesaler fee, would decrease the amount of cash I need to put into the deal up front.

 My question is, has anyone tried this or a similar approach? If so, how did you structure it so that the lender viewed it as single transaction? 


Loading replies...