Hello, I am new to investing and I am doing some studying but I keep hearing about an assignment fee.....what is ts, and how much is it?
Im guessing.......its when you put into your contract when buying from a seller, when the contract has your name, and or assigns. that when someone else comes to the closing table on your behalf (the buyer, or the attorney) that there must be an assignment fee paid to that party?
Thanks! I hope this helps other people too!
Assessment fee is the fee you charge to sell your contract to someone else.
Since you don't actually get paid until closing.
Where do you usually put the "assignment fee" and do you have to disclose it?
I know that disclosure on if its a double closing, is state specific. So that way the seller doesn't "flip out": when they see how much your selling their home for. And sometimes your attorney can agree to do that as well.
The assignment fee in basic terms:
When you find a property and negotiate a price, you then assign the contract to someone else to buy the property. The assignment fee is the amount you make in between the price you negotiated with the seller and the price you agree to with the end buyer. When you assign a contract the end buyer will see what you make. You get paid at the closing table usually at a Title company.
But if you buy it right, you can sell it at a great price and still make a big fee.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.